Research Of Listed Companies Related Transaction Fraud Identification And Audit Risk Prevention

China's economic has been developing rapidly since the reform and opening up,the number of listed companies also increased with the establishment and continuous improvement of the securities market.Then financial frauds have occurred repeatedly.From the beginning with the Yuanye company financial fraud case in 90 s,then is Qiongminyuan,Yinguangxia,Kelong etc.Then Chinese aluminum and Wuliangye also involved in financial fraud storm.With the rapid development of China's capital market,there is a growing number of cross shareholdings between companies in order to improve their competitiveness.Thus the more complex relationship between the parties is formed.On the other hand,unfair connected transaction makes it become a tool to manipulate profits and whitewash financial information.The related party transaction is complex,hidden and difficult to identify.The audit difficulty and audit risks of certified public accountant are greatly increased,and it has seriously hindered the efficient operation of China's capital market.Under this background,this thesis makes a detailed study on *ST Sainty Marine fraud case.This thesis uses financial analysis to identify fraud behavior,by analyzing its solvency,operating capacity,profitability and abnormal financial data.And then discuss the means of the related parties' trade fraud from three aspects of hiding of connected relations and connected transactions,undisclosed matters and whitewash financial statements.Afterwards further analysis of the causes of the fraud.The main reason is that the external supervision is poor and the punishment is not big enough.The internal governance system of the enterprise itself is not perfect,the scale overexpansion,the high lever operation and so on.The lack of CPAs' independence,professional suspicion and caution,and there is no audit procedure specifically aimed at related transactions.Next,this thesis discusses the relationship between audit risk identification and the characteristics of the accounting firm and the corporate governance of the audited companies.And analyze the risk of inspection and major misstatement.Finally,this thesis offers some supervise suggestions to the external regulators,CPAs,and audited companies,it also optimize the audit procedure from the angle of audit risk.