Analysis On Audit Risks Of Related Party Transactions Of Listd Companies

Due to China's unique market economic mechanism and corporate governance mode,a variety of related parties exist in domestic listed companies,and related party transactions have gradually become a common transaction mode in daily business activities of enterprises.Due to the concealment and complexity of related-party transactions,listed companies sometimes deliberately do not disclose related-party information in annual reports or announcements.In addition,due to the inadequate professional competence of some audit practitioners and the low cost of punishment for violations,related party transactions are easy to be ignored in the audit work.In recent years,illegal disclosure of related party transaction information of listed companies has been common,which affects the process of China's capital market and severely discourages small and medium-sized investors from participating in securities market transactions.People have more and more doubts about the quality of audit reports provided by accounting firms,and the pressure faced by accounting firms and certified public accountants is also increasing.The affiliated party transactions by finding feasible specification,therefore,the countermeasures of audit risk and audit risk prevention and control system optimization,the discovery of more targeted the affiliated party transactions relevant financial system defects,and on this basis,optimization of related parties and transactions of supervision and restraint mechanism,in order to prevent the affiliated party transactions fraud is very urgent.However,at present,the academic circles in China do not put forward the corresponding measures for the audit risk of related party transactions.So,studying the audit risks of related party transactions of listed companies has far-reaching significance for standardize the audit of related party transactions of Chinese accounting firms and reduce their risks.This article is divided into five parts altogether,the first part is the research background and significance of the article,from the related party transactions,audit risk,the affiliated party transactions audit risk,summarized the three aspects of literature,and then the article research ideas and research methods,and briefly introduces the research content and framework.The second part first discusses the definition of related party and related party transaction,and after clarifying the definition of the two,this paper makes a brief analysis of the causes of audit risk of related party transaction from several aspects,and explains it with relevant theories.The third part firstly briefly introduces the accounting affairs,auditors and the auditees in this case,and thenanalyzes the transactions of the auditees' affiliated parties.In the fourth part of this paper to analyze the specific case,first of all,is the source and pointed out the letter in response to YaXing Chemical Company problems existing in the process of the affiliated party transactions audit risk,and then from the sign certified public accountants,certified public accountants and the auditees in-depth analysis in three aspects: the accounting firm of the affiliated party transactions audit risk against the cause of the failure,and finally put forward the perfect is the source and the letter should YaXing Chemical Company related party transactions countermeasures of audit risk.The fifth part through the analysis of the foregoing,combined with the status quo of Chinese accounting firms' response to the audit risks of related party transactions,summarizes the relevant conclusions and enlightenment.The relevant theories involved in this paper include transaction cost theory,information asymmetry theory,fraud motivation theory and risk-oriented auditing theory.This paper first introduces these theories,then according to these theories are the source and the letter certified public accountants of YaXing Chemical Company related party transactions the deep cause of the failure of the audit risk,and puts forward some effective strategies for related party transactions to prevent audit risk,to guide the public accounting firms to strengthen their internal management,diligent and responsible,and certified public accountants to audit in our country industry and healthy development of the auditees.Through case analysis,three conclusions are drawn: first,the quality of certified public accountants in China needs to be improved;second,the practice quality system of accounting firms is not perfect;third,the poor development status of the industry is the pressure of the collective fraud of YaXing Chemical Company.This paper summarizes three inspirations from the cases where ZhengYuanHeXin failed to dispose the audit risks of related party transactions of YaXing Chemical Company: first,accounting firms should strengthen their internal governance system;Secondly,while improving their professional skills,certified public accountants should also improve their professional ethics and maintain due professional caution.Third,paying attention to the industry environment of the auditee can effectively reduce the audit risk of related party transaction.