The Internal Control Of Affiliated Transactions Of Listed Companies

With the frequent phenomenon of mutual shareholding among listed companies in China,affiliated transactions have been widespread in the trading behavior of listed companies.The relationships in the related parties of the listed companies are becoming more and more complex and diversified.The affiliated transactions between listed companies and related parties show the characteristics of diversification,concealment,and not easy to identify or disclose.At present,many scholars have proposed that a good internal control system can promote the normal affiliated transactions of companies.They think there is a link between affiliated transactions and internal control.But what is the link between internal control management and affiliated transactions?How does the internal control affect the development of affiliated transactions?How to improve the affiliated transactions by strengthening the internal control of the company?This paper summarizes the research results of domestic and foreign experts on related affiliated transactions and internal control.On the basis of reviewing and summarizing the relevant literature and researches,this paper has a further research the specific relationship between affiliated transactions and internal control.Then this paper takes some companies involved in affiliated parties and their affiliated transactions in non-standard audit opinions report and internal control audit report issued by certified public accountants from 2015 to 2017 to analysis.It is concluded that internal control of listed companies mainly improves related party transactions by managing capital activities,guaranteeing business and internal information transmission of enterprises.And the internal control of listed companies uses five essential means,control environment,control activities,risk assessment,information and communication,and supervision,to strengthen the improvement of affiliated transactions of listed companies.According to the Analysis result,this paper combines with the specific case of HuiYuan Juice Company in serious violations of related party transactions.This paper puts forward measures to strengthen the internal control of related party transactions of listed companies.Hope to play a positive role in improving the realization of related party transactions in China.