Case Study On The Hidden Related-party Transactions Audit Of H Company

Nowadays,with the development of the economy,the transactions between related parties have been favored by the business operators because of their advantages of convenient transaction cost saving,and more and more companies are using them in daily business activities.Due to the special nature of related party transactions,such transactions are also used to transfer interests and damage the legitimate rights and interests of the company and other stakeholders,for example,using affixed transactions to fictitious business to gloss over statements.In order to stop these misconducts,accounting standards have related regulations.The definition of related parties in the "Accounting Standards for Business Enterprises No.36--Affiliate Disclosure" is that one party controls joint control of the other party or exerts a significant influence on the other party,and two or more parties are jointly controlled or controlled by one party.Affected,constitute related parties.In recent years,the trend of recession of related party transactions has gradually increased.For example,using an indirect related party transaction completed by a third party transition,the related party “disassociates” after the transaction is completed.On the surface,these transactions are truly fair.In fact,the economic and commercial nature of the seriously distorted transactions is behind them,which has a serious negative impact on the market.At the same time,these hidden related party transactions also increase the degree of auditing.Auditors cannot obtain adequate and appropriate audit evidence to prove the true fairness of the transaction.To a certain extent,the degree of auditing is increased,the audit risk is increased,and higher requirements are placed on the professional level of auditors.In this context,this paper takes H company's implicit related party transaction auditing as an example to analyze the process of auditing the implicit related party transaction audit,the audit focus and major risk points,and finally find out the hidden related party transaction of the trial company in time.Auditors issued reservations.The case of this article provides auditors with the idea of auditing work and circumvents audit failures caused by implicit related party transactions.At the same time,the auditors are better able to work,but also to protect the interests of users of statements,provide more credible financial information,ensure the standardization of transactions,and promote social and economic development in a rational and orderly manner.