Study On Related Party Transaction Fraud Of Listed Company And Fraud Auditing

Under the background of the global economic integration which brought by the rapid development of capital market, companies often use the annexation purchase behavior to derive powers including control, common control, joint ventures, cooperative management of other organization forms, so as to seize the market and the control of industrial chain. The objective is to stay invincibly in the global market for the fierce competition. The mutual holding behaviors have formed complex, concealed related party relations and transactions. To a certain extent, it aggravates "information asymmetry problem". As one of the external stakeholders' important channels to get information, financial reports also have become more and more important in capital market. Then significant fraud cases have been happening, particularly the use of related party transactions, which lead serious impact on the healthy development of the securities market, damage the investors, creditors, etc. And it has brought negative effects to the independent audit market.On the basic of detailed analysis of the financial fraud and the affiliated party transactions behaviors, this article appropriately tried to introduce management fraud-based audit mode and proposed some effective audit strategies. This article includes five parts of the body:The first part is the preface, the author introduced the relevant background and research dynamic at home and abroad, and then it put forward the research angle and ideas.In the second part, the author analyzed fraud using the related party transactions, including the definition of its trading relationships and transactions between the associators, the theoretical analysis about financial fraud.Part III is very important. The author analyzed the status quo of the affiliated party transactions fraud, including three years'status quo of the affiliated party transactions of the affiliated party transactions from 2006 to 2008, the motivation and the main way of fraud, etc.In Part IV, the author briefly analyzed the affiliated party transactions audit existing problems. The last part is the focuses of this article. The author put forward the counter audit measures, including the use of management fraud-based auditing mode, the importance of professional judgment ability, and the design of specific audit procedures and so on. The author held that financial report audit risk must be located on the management fraud risk areas, including the related party transactions fraud risk. According to the particularity of the related party transactions, the CPA must fraud must fully consider each risk factor within the design of the audit procedures and methods.