Study On Audit Risk Of XY Accounting Firm’s Audit On Beida Jade Bird Huaguang Tech. Company’s Related Transactions

Along with the exacerbating of market competition and the development of economy, more and more related transactions occurred, of which the relevant amount has already reached to its peak. As a result of that, certain amounts of listed companies would conceal related parties, or conduct unfair related transactions to raise income, increase profit. The above behaviors can and will add more difficulties and bring more audit risk to public accountants’ work routine. It requires CPAs to be alert to audit risk caused by related transactions, sum up the experience through practice, and always seek for effective methods.To solve above problems, based on validity and maneuverability, this article takes Qing Niao Hua Guang Fraud case as example, list public accountants’ behaviors during the audit routine, analyze their roles in the work, and try to deeply investigate the reasons which caused the extremely high audit risk. At last, this paper comes up with methods to evade the audit risk, from the perspective of practice.This paper includes four parts as below:Introduction. This part introduces the information of related transactions and relevant audit risk, with the realistic meaning of this thesis. The set forth the major research method and approach. Chapter 1, Case Description. In this part, the background of XY Public Accounting Firm and Qing Niao Hua Guang LLC. has been introduced. With the reliable data collected through all methods, the writer uncovers the fraud case and the role which CPAs had played. Chapter 2, Case Analysis. To begin with, this chapter introduces relevant theories and stipulations that will be used to analyze the case. Then based on the fact, this paper explore the factors which had caused the wild audit risk by going through the exact behaviors acted by public accountants. Chapter 3, Suggestions. The last part concludes the above reasons, and comes up with certain suggestions, hopeful through which would help public accountants to recognize and avoid audit risk effectively.