An Internal Control Case Study Of Company X About Related Transactions

Related transactions are becoming more and more common in modern society.But there is some relationship between many financial fraud cases and related party transactions,so people not like to talk about this.So how to establish a sound regulatory mechanism has become a top priority.Related transactions and internal control have always been a practice-related issue.Firstly,the paper illustrates the study of related transactions and internal control;Secondly,this paper introduces the related theories of internal control and related transaction.Thirdly,this paper chooses a large amount of related transaction of Company X as an example,and uses the case study method to analyze the relationship between internal control and related transaction from internal control process and financial angle and draws the conclusion: the related transactions are common in Company X,the internal control system of related party transactions is perfect,the relevant control process is strictly enforced,and sum up the guarantee factors of the successful implementation of internal control of related party transactions.At last,the paper puts forward the suggestions from the aspects of external supervision and internal control.The significance of this paper is that the non-fair related transactions bring a series of disasters to the market.Because of the opaque and inaccurate information,investors can not accurately identify the corresponding information and could reduce their investments,then it will lead to the shrinkage of the capital market,which is not good to the long-term development of the Chinese company.This paper takes Company X as an example,and draws the conclusion that the internal control of company's related transaction is successfully implemented,which undoubtedly enhances the confidence of the investors.