Audit Research On Overseas Related Party Transactions Of Listed Companies

With the development of the “Belt and Road” initiative to a new stage and the in-depth development of supply-side structural reforms,more and more listed companies have begun to expand their overseas business,especially in the chemical industry,textile manufacturing,automobile manufacturing and other industries.The situation is extremely rapid.The continuous development of overseas business of enterprises has also brought about an increase in the number of overseas related parties and overseas related transactions,which has brought enormous challenges to the audit work of accounting firms.In order to improve the company's operating efficiency and defraud the investment confidence of the securities market,non-performing enterprises have chosen non-fair cross-border related transactions for fraud,and the company's report data has brought a big impact on the securities market.Over the years,domestic and foreign experts have been deeply studyed in the related party transactions auditing,and the theoretical system is relatively mature.However,as a new type of connected transaction,overseas related transactions are rarely studied by domestic and foreign scholars.However,the existing audit research is mostly from the perspective of empirical evidence,lacking the pertinence and practical guidance of the case company.On the basis of relevant research at home and abroad,combined with the relevant content of specific accounting standards,this paper summarizes the definition and types of overseas connected transactions and the key points that CPAs should pay attention to in the audit work,and points out that there are audits of overseas related transactions: audit procedures The implementation is difficult,the scope of the audit is limited,the identification of overseas related parties is difficult,and the audit risk is high.Based on the information asymmetry theory,risk-oriented audit theory,fraud triangle theory and transaction cost theory and other related party transaction auditing theories,this paper analyzes Dengyun's overseas related party transaction audit cases and finds that ShineWing Zhonghe Certified Public Accountants is in the audit work.There are problems such as insufficient implementation of audit procedures,ineffective internal control audit of related party transactions,inaccurate identification of overseas relatedparties,inadequate disclosure of overseas related party transactions,and insufficient audit communication of related parties.Tracing back to the source,this paper finds that the following reasons have led to the audit problems in Dengyun: the due diligence of the audited entity before the firm undertakes the business is insufficient;the internal control audit of the related party transaction is not effectively carried out;Pay attention to overseas related parties and overseas related transactions;the analytical procedures for abnormal data are not in place;the substitution procedures are not in place;the CPA has not paid enough attention to the abnormal risk points.After analyzing the reasons for the above audit problems,this paper proposes six targeted strategies to improve the audit quality of CPAs,including: fully understanding the equity structure and executive background of the audited entity,and in-depth investigation of related party transactions.The scientificity and effectiveness of internal control,attention to the implementation of alternative procedures in substantive testing,the implementation of targeted analytical procedures for overseas related transactions,the improvement of the professional competence of CPAs,and the appropriate introduction of joint audit methods.