Research Of The Relationship Between The Related Party Transaction And Audit Risk Of Listed Companies

With the progress of science and technology,the trend of the times,the trend of global economic integration has been strengthened and the competition of capital market has become more and more intense.Related party transactions have become one of the most common phenomena in capital market.In the related party transactions,the parties to the transaction after the coordination of the transaction to determine the price of related party transactions.Some listed companies in order to obtain greater profits in the related party transactions in the financial fraud,more and more listed companies,managers with unfair means to manipulate the interests of the performance of the whitewash to attract the attention of investors.Some major shareholders also through the related party transactions for personal gain,against the interests of the lieutenant shareholders.The relationship between related parties and their transactions is difficult to define,the degree of standardization is poor,for the audit work has brought great difficulty.Due to the universality,complexity and concealment of the related party transactions,the audit work of the certified public accountants is more difficult and the audit risk increases.In order to avoid the loss of the capital market,the public and the accounting firm due to the audit failure of the related party transaction,the certified public accountant needs to control the audit risk of the related party transaction of the listed company in the audit work of the listed company.Based on the empirical research and normative research method,the author analyzes the concept and characteristics of the related party transactions of listed companies in China,and the status quo of CPA's audit work on listed companies.Through the theory,the author analyzes the relationship between the related party transactions in the audit risk and discusses the related party transaction factors which affect the audit risk.Finally,the author points out the purpose of controlling the audit risk and standardizing the transaction of the related party by putting forward the legitimacy of the related party transaction and the means that the accounting transaction of the certified public accountant and regulatory body should take the three angles.The final research shows that the distinction between related party transaction audit and general transaction audit is an important basis for accounting firms to guard against the audit risk of related parties.In undertaking the business stage,the accounting firm must grasp the operational capacity of listed companies.Comprehensive and accurate evaluation of the risk level of listed companies.At the same time,we should also use professional high-quality audit personnel to carry out audit procedures for related party transactions,so as to accurately identify the risk elements and evaluate the audit risk reasonably.In order to reduce the auditing pressure of CPA,it is necessary to construct a comprehensive,standardized and systematic audit system of related party transactions in listed companies,ensure fair and lawful transaction of related parties.It is necessary to perfect the supervision of listed companies and realize the avoidance of related parties,the purpose of the overall audit risk level.