Research On Audit Risk Of Related Party Transactions Of Listed Company

In recent years,more and more public companies has been found financial fraud.The financial fraud not only affects the perfecting of the capital market in our country,but also has caused great economic losses to the investors.The related party transactions has become the most kinds of means to help public companies to financial fraud in many financial frauds methods.Because related party transactions have the feature of particularity and concealment.If the company hasn't disclose the related parties in the financial report,auditors are hard to find this kind of related party transactions.Beased on the results of domestic and foreign researches,this paper introduces the definition and motivations of related parties transactions,and the theory of audit risk.The whole paper lays the theory of foundation for the research.This paper analyzed the related party transactions in Sainty Marine Corporation.First,this paper points out the risk of material misstatement and the risk of inspection in Sainty Marine Corporation about related party transactions.Second,This paper designs the analysis procedures of audit risk of related party transactions.Including due diligence on related party transactions,identification and analysis of audit risk of related party transactions,characteristic analysis and accounting treatment of audit risk of related party transactions and the evaluation of the disclosure.Finally,bsased on the analysis of the driving factors of the audit risk of related parties in Sainty Marine Corporation,This paper puts forward the optimization scheme of the audit risk prevention and control system of related party transaction.For instance,establishing an effective risk assessment system and supervision mechanism,the auditor should use the analytical procedures rationally and keep professional suspicion to found financial fraud in time,the government increase supervision and illegal punishment for the financial fraud.