A Research On Corruption And Auditing Risks Of Related Party Transactions For Zixin Pharmaceutical

Nearly 40 years of reform and opening up have undergone tremendous changes in our country.Economic development and social progress have resulted in a gradual increase in transactions between related parties.However,many listed companies are still trying to find ways to financial fraud,financial fraud through related party transactions is one of the most common means.Listed companies show their own performance mainly through the way of financial reporting,while the company's financial reports are also the main basis for investors to make investment decisions.For some listed companies with poor market competitiveness,poor performance is difficult to attract a lot of money.Therefore,financial reporting through financial fraud has become another way for these listed companies to attract funds.In the tricks of fraud methods,due to the uniqueness of related party transactions,listed companies do not disclose transaction details in their annual reports,making it very difficult for auditors to find out the specific circumstances of financial fraud and increase the audit risk.As a result,many listed companies have taken advantage of the fraud of related party transactions.From the nineties of last century,China's listed companies financial fraud frequently,one after another,related party fraud cases such as "Yinuangxia","Wanfushengke" and "Kangzhi Pharmaceutical" were exposed.The fraudulent use of related party transactions by these companies is extremely similar.The paper first defines the meaning of related party transactions and related parties,the type of extremely motivated;Then the article lists the status quo of the related party transactions of the listed companies in our country and the existing audit problems,And with ZiXin Pharmaceutical as an example,a detailed analysis of Zixin Pharmaceutical through related party transactions fictitious profits,whitewash the financial statements,ZiXin medicine hidden self-produced sales of the chain one by one decomposition analysis,adopting the method of horizontal comparison,we can tap the fraud problems in the related party transactions and then analyze the audit risk in the related party transactions.Finally,from the point of view of related parties,the thesis sums up the countermeasures against the above related party transactions and audit risks.