Research On Related Party Transaction Audit Of WL Corporation

Related party transactions have always been a hot topic in the relevant academic community,arguably a double-edged sword,showing both positive and negative aspects of trading.The motivation is that if both parties can trust each other and understand each other,some of the costs can be reduced to a certain extent during the transaction so that both parties can obtain more benefits.:Mainly provides some seemingly beneficial and legal means for the transfer of assets of the company while at the same time it can control the profits so as to achieve the improper purpose of the company so that the interests of the bondholders and the minority shareholders are harmed and even worse,National interest.Some studies show that most of the related party transactions in our country have large negative effects,that is,they are more negative in nature,If such long-term development continues,the negative impact will greatly hurt the securities market in our country.At the same time,the related party transaction is different from the ordinary simple transaction.It has a certain degree of covertness and complexity.Whether it is an internal auditor or an external auditor,it often faces huge problems in auditing and disclosing related party transactions.Therefore,the research on the related party transaction audit in this aspect has important theoretical and practical significance.Based on the theory of fraud triangulation,principal-agent theory and transaction cost theory,this paper introduces the example of WL Corporation,uses the combination of case study and standardization research,and systematically reviews the relevant literature both at home and abroad.Taking WL Group as an example,This paper analyzes the status quo of transactions between related parties and related parties in WL Company,takes audit quality control as an entry point,analyzes the problems existing in the audit process of related party transactions,explains the causes and operating rules of the problems,and finally analyzes the internal and external Audit institutions to explore ways to improve the quality of related party transactions audit recommendations and suggestions to improve the company's auditing related party transactions norms and audits,concluded that:For the company,it is important to the company's business with the large Data applications to improve the efficiency of the audit;For external auditors,especially accounting firms,the urgent need to establish a scientific system of related party transactions audit to improve the quality of the audit.In addition,the innovative point of this article is not only to grasp the status quo of the related party transaction audit macroscopically,but also to carry out targeted analysis and effective exploration from the microscopic point of view,specifically with the WL company's actual related party transactions.The structure of this paper is as follows:The first part is the introduction,which introduces the research background and significance of the article,and sumarizes the relevant literature by combining the relevant literature at home and abroad in recent years.Second,The second part is related concepts and theoretical basis,including the definition of related parties and related transactions in the audit process,the basic principles of the related party transactions audit,the related party transactions audit overview and theoretical basis;The third part is a specific combination of WL Corporation case,first a brief introduction to the basic situation of WL company,and then focus on the analysis of WL company's disclosure of related party transactions,audit procedures and results of these related party transactions listed out the audit process The fourth part is the key section of this article.According to the analysis of the causes of the problems raised in the third part and find out the factors that affect the quality of the audit of the related party transactions of the company,put forward the audit of the related party transactions of WL company Program to optimize the feasibility of the process,thus High WL Group and the external auditing units on the related party transactions in this area of the audit level and quality;the fifth part is for the audit of the many problems in the proposed countermeasures and recommendations;the sixth part is a summary of the conclusions of this study,And put forward a new prospect for the future research.Research conclusions and research prospects.