Research On Companies Related Party Transactions Fraud Audit

For a long time,government regulators and investors concern about fraud in capital markets,at the same time,auditing of fraud is also the key points and difficulties of certified public accountants.With the development of our country's economy,the enterprises try to obtain more profits through merger,joint and other methods to expand scale,this leads to relationship between enterprises becomes more and more complex,trading between associated enterprises has become increasingly widespread and drawn lots of attention.Because the problem is not easy to be found in related party transactions,in view of the regulation of the affiliated party transactions is not yet perfect,compared with counterfeiting earnings,the penalties for fraud seem slightly insufficient,many enterprises management in front of its own interests and performance pressure will choose to use the affiliated party transactions to implement fraud and whitewash statements.In recent years,cases such as Ya Xing chemical,Zi Xin pharmaceutical,Kang Zhi pharmaceutical companies were punished because of so types of fraud by the securities and futures commission emerge in endlessly.It can be said that in many cases of financial fraud,the affiliated party transactions fraud has become one of the commonly used methods.And certified public accountants in the face of such a fraud,due to the lack of professional competence and professional caution and audit procedures not perfect,often hard to find,so that issue false audit reports.It will be unfavorable for the steady development of capital market,the rights and interests of the broad masses of investors,and once fraud was investigated and punished by regulators,accounting firms and certified public accountants will face great responsibility.Based on the status quo,this paper collected the current research on this issue both at home and abroad,combined with related theory.First of all,this paper analyzed the characteristics of the affiliated party relations and the affiliated party transactions,on this basis,further expounds the reason and means of using related party transactions to implement fraud and under the existing standards,certified public accountants how to audit;And then from regulatory authorities,enterprises and the auditor's point of view,respectively analyzes the causes of the problems in the affiliated party transactions fraud audit;To solve these problems,standing on the position of the above three parties,supply some suggestions for how to improve the affiliated party transactions fraud audit;Finally combining this year found that Shen Xianyuan company affiliated party transactions fraud case,exemplify some proposed views in this paper,which illustrates the harm and application of the affiliated party transactions fraud in financial fraud and difficulties of the audit.Hope can through the analysis and suggestion in this article,make the auditing of affiliated party transactions fraud be more efficient in the future and to standardize enterprise related party transactions,maintain the stability of the capital market development,protect the rights and interests of investors.