Auditing Study On The Fraud Of Associated Transactions Of SC Company

With the globalization of the economy and the continuous development of the securities market,China has seen a wave of mergers and acquisitions in recent years.A large number of group companies have been created and economic activities are frequent.On the one hand,normative related party transactions can save transaction costs,bring scale benefits,more effectively manage capital and debt,and enhance the company's competitive advantage.On the other hand,because there are internal interest relations and complex relationships,it may be used for fraudulent purposes in order to unduly increase profits and transfer assets and other improper purposes.Related transactions have a certain degree of opacity,so they are likely unfair and reasonable causes of fraud.This will not only affect the good development of the securities market,but also harm the rights and interests of investors.So it requires that CPA be vigilant about the audit risk of related transactions and combine practical experience to find effective ways to control the risk of related transactions.This article takes RH's audit of Jiangsu SC Company's related transactions as an example.It introduces the fraud means by SC used in the related transactions,and combines the auditing process of CPA to analyze the problems and causes,then obtains inspiration to improve the audit of related party transactions.In the first part,the author briefly introduce research background,significance,literature review,content and methods.In the second part,the author introduce relevant theoretical basis.Part III mainly introduce the case,including fraud methods in related transaction and punishment,the audit process and punishment of CPA.Part IV identify the problems existing in the audit process and analyze the reasons.Part V mainly introduce suggestions for improving the effectiveness of related party transaction audits.This article through the study of specific cases,combined with the relevant theoretical basis,extends to the practice of CPAs in the audit of connected transactions in the existing problems.Finally it get the inspiration for the audit of related transactions fraud,which in turn can promote the sound development of the capital market and protect the interests of investors.