A Study On The Audit Of Related Party Transactions Of Listed Companies

In recent years,with the development of capital market,found a series of cases of accounting fraud of listed companies at home and abroad.Related party transactions,is neither the insider trading,is not entirely in the sense of market behavior.For the main purpose of the related transactions of listed companies has the following two aspects:one is that in order to improve the company's operating efficiency,so as to achieve the purpose of reducing transaction costs.Second,in order to get the rights to profit or qualification,to prevent be PT or ST and is an important means to manipulate profits.In the financial markets due to the presence of large amounts of the unfair related transactions,cause distorted market resource allocation function,to a large number of listed company's creditors,the interests of small and medium-sized shareholders and other stakeholders company was invaded.Many listed companies in order to improve their market competitiveness,often to buy,the way such as mergers and acquisitions to get other organizations or the control or management of the enterprise,in this case,the corporate control has been jointly owned after lead to internal related party relationship is complex,and some undesirable businessman with the complex internal relations related party to seek exorbitant profits.China's capital market has been developing rapidly in recent decades,but followed by the affiliated party transactions fraud also emerge in endlessly,make our country a lot of investors and creditors in capital markets have been harmed the interests of a large extent,restricted the healthy development of the economy in our country.In addition because the concealment of the related party transactions is higher,want to carry out audit work is very difficult to find these questions,which further increase the risk of audit,the audit market of our country brings about adverse effects.Related transactions was born in the enterprise internal,in many enterprises,internal force alone has been unable to compete this bad behavior,so in recent years,governments around the world are beginning to realize that the importance of stepping up efforts in supervising related transactions of listed companies.American "enron event",make up a special purpose entities,and China's "abandonment event"-fiction related transactions,has attracted more and more investors to internal fee unfair related transactions of listed companies widely attention,also let the auditor aware of the wake-up call.From the perspective of external audit institutions and auditors to the unfair related transactions of listed companies fraud escape is impossible,only strengthen the connection transaction audit,to avoid the affiliated party fraudcontinues to expand.Internal fraud and external supervision is actually in the game process between the dynamic,even the sarbanes-oxley has also does not mean that the game over.With the connection transaction growing complexity and to conceal,non-standard disclosure phenomenon is also common occurance,this also is an urgent need to further strengthen its external audit of the internal related transactions of listed companies.China's ministry of finance in 2006 and 2006,respectively connection transaction auditing standards for the two major revisions,greatly improve the affiliated party transactions auditing system in our country.But in reality there are still a lot of illegal affiliate transaction,the audit institutions to carry out the audit brought a major practical work,from the theoretical study and actual condition,the implementation of the auditing standards is stagnant.This study use case study method of combining theory with practice of related party transactions of listed companies in China audit issues in-depth study,in the study of relevant literature both at home and abroad the theory on the basis of the summarizing,and specific case as the breakthrough point,this paper analyses related party fraud audit issues.The author hopes to be able to use the research methods to analyze the motivation of accounting fraud of listed companies in our country,combining with our country economic environment,discussed our country listed company the affiliated party transactions fraud audit specific technique,through summarizing puts forward the corresponding countermeasures and Suggestions,and accounting and auditing standards is audit this song to detailed discusses how to better according to the auditing standards and certified public accountants audit both prevention and control of the listed company the affiliated party transactions fraud.This article altogether is composed of the following four parts:The first part is the preface part,the main content is the study of the study significance,research background,research ideas and related research results at home and abroad were reviewed and a brief overview.The second part mainly discusses the connection transaction audit aspects are introduced in details.First of all define the definition of related party and related party transactions;Then the connection transaction audit the main content,principles,this paper discusses fully;Finally,this study introduces the theoretical basis.The third part on the basis of the above introduction and analysis of the cases,first introduced the C company the expression of related party transactions,and then discusses the C company the cause of the affiliated party transactions fraud.And Thethird part is from various angles in-depth analysis of the related party transactions in the audit problems and causes,including the unfair related transactions recognition difficulty,the particularity of related party transactions,lack of the independence of certified public accountants,certified public accountants to affiliate transaction audit professional judgment bias Angle,etc.The fourth part is mainly based on the above discusses specific solutions are put forward,hope to be able to in order to further perfect our country's current system of associated business audit,mainly includes the following aspects: improve the audit quality,strengthen the internal management of the firm,to establish and perfect the system of related party transactions and audit,carefully selected customers and undertake business,improve the audit on related party transactions.