Research On Audit Of Related Party Transaction Fraud In Listed Companies

With the vigorous development of China's securities market,the role of Listed Companies in China's market is increasingly obvious.With the fierce market competition,listed companies are still developing rapidly.Many listed companies will cooperate with other enterprises through mergers,mergers and joint ventures.However,fraudulent behavior extends in the process,which also shows to some extent that there are loopholes in China,s securities market.In a series of financial fraud cases published by the SFC,fraud is mostly carried out by means of related party transactions.Affiliated party transaction is a complex and concealed special form of transaction.On the one hand,it can save transaction costs,improve efficiency and maximize the rights and interests of enterprises.On the other hand,driven by interests,enterprises may use affiliated party transactions to make financial fraud,which not only increases the dificulty of social auditing,but also makes enterprises themselves suffer a lot of losses.Therefore,it is necessary to strengthen the audit of related party transactions fraud by auditors.In view of this,this paper uses the method of combining theory with cases to conduct in-depth research on fraud auditing of related party transactions of Listed Companies in China,and then to improve the auditing procedures.Firstly,this paper combs the relevant research on related party transaction fraud by donestic and foreign scholars,expounds the related concepts and theoretical basis of related party transaction fraud;then,through collating the related party transaction data of more than 3000 listed companies in Shanghai and Shenzhen Stock Exchanges firom 2013 to 2017,it analyses the current situation of related party transaction fraud audit,including the scale of related party transactions,types of related party transaction fraud,and related party transactions.On this basis,taking the actual case of S company as the research object,this paper deeply analyzed the main financial data and related party situation of S company,analyzed the fraudulent practices of related party transaction fraud of S company,and then analyzed the main problems and reasons of related party transaetion audit of S eompany.Finally,from the legal system and Auditor respectively.In order to find out the financial fraud of listed companies through related party transactions in time,improve the audit quality and standardize the capital market,the author puts forward some specific suggestions on related party transactions auditing in order to launch effective auditing by certified public accouotants.