Tudy Of Fraud And Audit Risk In Related Party Transactions Of Listed Companies

Since reform and opening, with the rapid development of China’s economy, and the deepening and improvement of the stock market, many businesses and companies have listed on the stock market, therefore, huge and profound changes have taken place in the stock market. With the development of the stock market, there are more and more problems associated with the party transaction. To a certain extent, the emergence of related party transactions will save related transaction costs of enterprises and will improve operational efficiency. But, at the same time, it provides a means of financial fraud for the enterprise.The behavior of some companies using improper related party transactions to have a financial fraud, not only hindered resource allocation function in the capital market, but also harm the interests of stakeholders of listed companies. This gives an adverse impact on society. It has been difficult to prevent improper related party transactions only with Companies’ own power. Therefore, it is necessary to increase outside audit efforts to the related party transactions, to reduce number of the unfair related party transactions.Based on related party transactions A corporate audit case studies This paper studied elated parties’ own characteristics and the defects in related party transactions of the audit process etc., from the perspective of audit related party transactions, through related party transactions in A corporate audit case. Based on the basic theory of related party transactions, as well as content and risk characteristics of related party transactions, This paper analyzes the existed deficiency in audit of related party transactions, and the present situation of related party transactions audited, what’s more, the paper build a targeted audit procedures of related party transactions, and give reader some relevant recommendations, based on the status quo of related party transactions audit.