Research On Fraud Of Related Party Transactions From The Perspective Of Auditing

With the rapid development of capital markets, the scale of listed companies in China have more and more huge currently. In order to enhance their competitiveness in the market, a lot of listed companies went through restructuring, mergers and acquisitions, the business model has undergone a qualitative change, the relations between enterprises are more complex than before, industry is also becoming more diverse. Under this environment, associated trade of listed companies has become the most integral part of the production and operation. It can greatly reduce transaction costs, improve efficiency, accelerate the formation of economies of scale. Of course, the emergence of related party transactions has also brought new challenges for the regulation of the securities market and CPA. Many enterprises take advantage of the financial fraud to earnings management in order to whitewash report, adjust revenues and profits, the possibility of fraud in related party transactions is greatly increased. When the CPA audit the associated trade of listed companies, because lack of enough information of association and the quality of cautious, increasing the audit risk of CPA and leading to audit failure easily.At first, the paper applies the method of literature research, Reading and summarizing a large number of articles about transaction audit, it summarizes that the related-party transaction is main method of financial fraud, and the related-party has the character of complexity and concealment and no specific audit procedures. In this way, it will increase the difficulty of CPA audit, and it also will increase the audit risk. Then, combining the method of qualitative and quantitative, gathering and summarizing the financial data of companies listed on GEM, analyzing the tendency of the amount about related-party transaction from 2009 to 2015, it can find that related-party transaction is more and more frequent in private listed companies. This phenomenon prove that CPA must pay more attention to the transaction of related-party, At last, combining the actual case about financial fraud, analyzing the shortcomings in the process of CPA audit, and pretending feasible suggestions from different angles.