A Case Study On The Audit Of Related Party Funds Occupation Of H Company

Due to the influence of factors such as the stability of the industry,the layout of diversified industries and the development of the financial market,the related party relationships of companies is more complicated and the way of related parties occupy the funds of listed companies is more complicated and hidden.China's regulatory policies also lag behind.The supporting system such as the business registration system is not complete,providing a convenient channel for the related parties to occupy the funds of listed companies.The frequent occurrence of cases in which listed companies provide loans or other financing arrangements to affiliated companies has damaged the interests of the company and its stakeholders,also has a negative impact on the securities market.Therefore,the innovative research on funds occupation audit of related parties has profound theoretical and practical significance.This article mainly through the case analysis of H company to study the related party funds occupation audit.The reason for the funds occupation by the related parties of H Company is to provide financing arrangement for the companies controlled by the controlling shareholder and the actual controller.H company mainly through the concealment of relationships,fictitious procurement business,on behalf of the payment by non-affiliated third parties to provide funds to related parties,to provide guarantees for the actual controller,etc.to achieve the purpose of financing arrangements for the association.However,R Certified Public Accountants failed to successfully implement the audit and found the illegal facts of H company.R accounting firm has many problems in the audit work.This article analyzes its existing problems and puts forward countermeasures and suggestions to improve the audit quality,including: improving the overall quality of CPA(Maintaining full professional doubt;Improving auditors' professional ethics);designing more effective funds occupation of audit procedures(To fully investigate the equity structure of the audited entity and the social relations among its directors,supervisors and senior management;Conducting due diligence on important funds units;Focus on large checks and bill acceptance;Being concerned about the internal control of audited unit funds business;Make full use of analytical procedures),the implementation of rigorous review procedures to enhance business quality control(Designing and implementing an effective analytical review process;Conducting in-depth project team discussions;Conducting a strict review of audit work paper).The innovation of this paper is to straighten out relevant theory of related parties' funds occupation and the auditing of related party's funds occupation.It is of great significance to perfect China's auditing theory system,it also analyzes the case of related company's funds occupation auditing and provides auditing practice with valuable case study.However,due to limited practical experience of author,the feasibility of the proposal to strengthen the related party funds occupation audit needs to be tested.