Research On Internal Control Of Related Party Transactions In Pang Da Automobile Trade Company

With the change of capital market and the restructuring of enterprises,transactions between related parties have become more frequent.Related party transactions are a double-edged sword for listed enterprises in China.On the one hand,it can effectively reduce the transaction costs of the campany,improve the profits of enterprises,and provide more channels for capital turnover.On the other hand,unfair related party transactions will bring extremely negative effects to the enterprise,including damaging the internal control system of the enterprise,increasing the financial risks and operational risks of the enterprise,etc.The above-mentioned unfair phenomena generally exist in related party transactions of listed companies in our country,causing corruption in the capital market.Pang Da Automoblie Trade Company of nonstandard related party transactions have been punished by the CSRC.Therefore,in order to prevent these drawbacks,it is particularly important to strengthen the internal control system of related party transactions.In this paper,I will combine with domestic and foreign scholars' relevant theoretical research on related party identification,classification of related party transactions and internal control of related party transactions,analyse various loopholes in internal control of related party transactions of Pang Da Automoblie Trade Company.Firstly,this paper collects and sorts out the related party transaction data of the company from 2015 to 2018,including financial data and non-financial data.On the basis of these data,I will analyse from the five elements of internal control of related party transactions,this paper analyzes the internal control environment of related party transactions,the behavior control system of related party and related party transactions,the group's risk prevention and control system,the related party transaction monitoring system and institutions and other aspects of management control.Through analysis,itis found that the loopholes in the control of related party transactions of Pang Da Automoblie Trade Company are mainly concentrated in the ownership structure,approval path,supervision mechanism and risk awareness.According to these problems,we continue to explore the deep-seated reasons for these loopholes in the company.Analysis shows that the enterprise has a high concentration of control rights,the interests of senior management personnel intersect with each other,each auditing organization lacks independence,and the staff quality is not high.Finally,according to the specific defects of the internal control of related party transactions in the company,the corresponding countermeasures are put forward from many aspects,including strengthening the stability of the governance structure,designing multi-level related party transaction management institutions,establishing regular staff quality training system,controlling the independent allocation of the audit committee and the supervisory committee.