Reasearch On Current Account Fraud And Audit In Related Party Transactions Of SX Company

Since the 40th anniversary of reform and opening up,many small and medium-sized enterprises in China have been established and developed rapidly.Related party transactions in the economic activities of group enterprises are also more frequent.Fraud through current accounts in related party transactions is more and more frequent.Everything has two sides,and related party transactions are no exception.Therefore,the auditing of fraud in current accounts is becoming more and more strict.Strict and standardized related party transactions can save transaction costs,bring scale benefits,benefit both parties to the transaction,and save time and manpower.However,due to the complicated interest relationship and the complicated connection between related parties,the company will empty the company in order to inflate profits or use its relationship to achieve some illegal purposes.Using related party transactions to conduct financial fraud,current accounts will become the primary tool for related party transactions.The use of connected transactions for financial fraud not only affects the good development of the securities market,but also damages the rights and interests of investors.This requires that the audit should pay more attention to the current account items in related party transactions,enhance caution,and combine the experience in practice to find effective methods to control related party transactions fraud.Based on the review of SX Company,this paper starts with the current accounts of the company and explores the related party transactions.After professional review by the audit team,it was found that the main fraud of SX Company was to sell commodities at low prices through complicated relationships with related parties.Borrow funds from related parties and transfer funds through other receivables and other payables;In order to transfer funds,fake sales contracts and so on.The first and second chapters of the article mainly describe the related theoretical basis of related party transactions and current accounts.The third chapter describes the audit methods for SX Company.The fourth chapter is case analysis.The fifth chapter is the suggestions on improving the audit effectiveness of related party transactions from the problems existing in the case.The sixth chapter describes the research conclusions.