Research On Audit Risk Of Related Party Transactions In China's Listed Companies Taking F Company As An Example

In recent years,With the rapid development of China's securities market and driven by the economies of scale of the company,a diversified financial system has been gradually formed,and the normalization of IPO is also accepted by the public,and the market competition has become fiercer.In order to be able to enhance their competitiveness in the market,many listed companies have undergone restructuring,acquisitions,mergers and acquisitions,the business model has undergone qualitative changes,the relationship between the company and the company has become more complex,and the industry has gradually diversified..This is followed by more frequent business transactions between companies and an increase in the exchange of goods and services between internal companies,and related party transactions have also become more frequent.The advantages and disadvantages of related party transactions coexist: On the one hand,standardized and reasonable related party transactions can bring scale benefits to the company,reduce costs while improving corporate efficiency,more effective management of capital and debt;on the other hand,listed companies out of Pursuing self-interests and using the transaction behaviors of the companies involved in them to conduct profit manipulations and transfer of investment risks.Therefore,in this environment,there are also many issues related to related party transactions.Because of their own motives,companies use whitewash reports to adjust their income and profits,and do not hesitate to use financial fraud to manage their earnings.This has greatly increased the possibility of fraud in related party transactions.It not only infringed creditors and investors to some extent.The rights and interests of the company have affected the normal market order.Although the regulatory authorities have formulated a number of normative laws and regulations in this area,which has curbed the growth of such non-fair related party transactions to a certain extent,there are still some companies that have hidden relationships through unrelated methods.The purpose of evading taxes,manipulating income and profits,and its inherent complex properties and hidden attributes haveIV greatly increased the difficulty of CPA review and identification.In order to maintain the stability of the capital market and protect the CPA's own interests,we need to further study effective measures to circumvent the audit risk of related party transactions.This article has selected F company,which has been investigated by the Securities Regulatory Commission several times,and uses it as an example to study the risks involved in the audit of related party transactions.The company was punished by the Securities Regulatory Bureau for allegedly concealing its affiliations and related transactions in May 2014.The company was again punished in March2015.Ruihua Certified Public Accountants,as its auditing agency,and the directly In March of this year,it was subject to the administrative penalty of the Guangdong Securities Regulatory Bureau,which was a typical case of the audit of related party transactions.From the first chapter,the article introduces the background of the topic and the significance of the research.It reviews the domestic and foreign literature on the audit risk of related party transactions and puts forward the research ideas and framework of this article.The second chapter first introduces the identification,form and motivation of related parties and their transactions,and then cuts in from the perspectives of transaction cost theory,principal-agent theory,fraud triangle theory and risk-oriented audit theory,and introduces related laws and regulations,and finally elaborates The way in which related party transactions affect audit risk.In Chapter 3,the concept and characteristics of audit risk of related party transactions are explained.Through the description of audit procedures,methods and evidence,the risks of current related party transaction audits in China are described,and they are subjective and objective.Causes to analyze.In the fourth chapter of the case analysis,F company was selected as the object of case analysis.First,the company's suspected relationship was listed,and the overall violations of the company's non-compliance and penalties were reviewed.Then analyze its financial status,observe the financial impact of F-party related party transactions,and then compare with the industry data,analyze the problems of F-party related party transactions,reveal the facts of its existing audit risk,and finally Explain the reasons for the risk of auditing related partytransactions.The fifth chapter focuses on the outstanding risks of the company's related party transactions through the F case,and proposes suggestions and measures for how to avoid the risks of related party transactions auditing from three different levels.Finally,the paper summarizes the research content of this article,and proposes the deficiencies of this article.Based on the content of the article and the thinking of F company case,it proposes the future research ideas of the audit risk of listed company's related party transactions.