Research On Related Party Transactions Financial Fraud And The Countermeasures Of Audit Risk

In recent years,there have been frequent cases of financial fraud in China,and in the means of these financial fraud cases,the form of related party transactions is particularly favored by the fraudulent listed enterprises.This is because the related party transactions can save various expenses and reduce transaction costs to a certain extent,thus achieving the purpose of polishing the financial statements and improving the profit.In addition,it is difficult for auditors to find such illegal operation when the listed company does not disclose such transactions.Due to the violation of related party transactions to the market economy in our country and the enthusiasm of medium and small investors to participate in the stock market impact,is not conducive to the securities market healthy and long-term development,etc.,so the study of the risks of the audit which are come from related party transactions is very necessary.In this article,through the help of the international scholars research results of related party relationships and transactions and related party audit risk is defined,at the same time introduced the affiliated party transactions fraud motivation theory and the theory related to the audit risk.Then this paper,from the perspective of normative research,identifies and evaluates audit risk,and puts forward countermeasures accordingly.In addition,this paper adopts the method of combining theory and case,and on the basis of the above theories,the author makes a concrete study on the case of financial fraud in the use of the affiliated party transactions of Sainty Marine.Sainty Marine case background is introduced first,and then introduces the case Sainty Marine with the method of related party transactions for fraud,and then from the industry environment of Sainty Marine,their ownership structure,the operation risk and its internal control and other aspects,on the risk of material misstatement of the enterprise audit identification and evaluation,and from the different aspects of the general and specific put forward the corresponding countermeasure.Coping strategies included firm of certified public accountant appointed system perfect,the conservation of doubts about profession of certified public accountants,certified public accountants to have disclosed and undisclosed information investigation and test of internal control system,etc.,hope for the auditor to better respond to audit risks associated with related party to provide the reference.