Fraud In ICT Related Party Transactions In Yiyangxingtong

Since the reform and opening up,China's market economy has developed rapidly,which has also brought some problems.The cormpany's ownership structure and business model have undergone tremendous changes,and related party transactions have also changed with the changes of market economy.The transaction amount is huge,complex and hidden.This has created difficulties for regulation.Whether it is the listing of enterprises or the accounting of daily processing of enterprises,financial fraud is an event that enterprises should pay attention to and prevent.In recent years,both at home and abroad,Yin Guangxia Event,Enron Event and so on have caused the crisis of trust in enterprises.In these fraudulent incidents,the use of related party transactions to improve corporate profits,or through related party transactions to make large shareholders privately occupy funds,and other receivables as a hidden means of related party transactions,are worthy of attention and research.Other receivables,as a"crowding-back" in accounting standards,have always been used to account for temporary payments other than transactions.Because of its complicated accounting content,it is easier for finance to use other receivables to account for illegal expenditures?cost and even form out-of-account accounts to conduct related party transaction fraud.The asymmetric accounting information provided by this phenomenon has led to misleading users of financial statements,and even led to the successful listing of some enterprises that do not meet the requirements of listing,embezzlement of capital market funds and disruption of market order.This paper explores how to discover the phenomenon of fraud in related party transactions from other receivables?as well as the causes of fraud,how to restrain this phenomenon from the inside of the company,and how auditors audit this phenomenon.Current research mainly focuses on how to use other receivables to account for illegal expenditure,cost,and other receivables instead of investment to write off principal?so that large shareholders can take advantage of this means to privately occupy the investment income of small and medium shareholders.Most of the reasons behind this are focused on the imperfect internal control of the company,such as the lack of analysis of other receivables'age in financial indicators,the disadvantage of age analysis in accounting for other receivables‘bad debts,the regular collection of long-term accounts?and recording the results of collection,etc.Current research on related party transaction fraud is focused on the concealment of related party transactions?using related party transactions to intercept investment in subsidiaries,write off principal,and privately occupy investment retums.However,there are still some deficiencies in the transactions of the related parties behind other receivables.This paper not only hopes to find the reality of financial fraud in related party transactions with other receivables as a convenient way,but also hopes to improve the audit quality through the audit of this subject,so as to reduce the financial risk caused by accounting information asymmetry and protect the relevant stakeholders.Based on the background that Yiyang Xintong was punished by the CSRC and issued non-standard audit opinions,this paper makes a study of the company.It combines the theory of auditing and management with case studies,defines the distinction between fraud and misstatement,and uses other receivables as a discovery way to quickly detect fraud in related party transactions.