Research On The Audit Of Related Party Transaction Fraud In Letv

While the globalization of the world economy promotes the rapid development of market economy,the competition among enterprises becomes more and more fierce.The rise of " Internet plus" era has also brought various forms of business development and broad space for innovation to various industries.In order to stand out in the industry competition,listed companies begin to boost the stock price through the form of related party transactions,guide the capital flow,and achieve the goal of profit maximization.Obviously,the development of related party transactions promotes the purchase and merger of enterprises and promotes the formation of complex equity structure.But at the same time,its extremely strong concealment and volatility also makes related party transactions increasingly deduce into common means for listed companies to realize benefit transmission,income adjustment,risk transfer and even conceal illegal motives.At present,China's current related party transactions related institutional norms and regulatory efforts to deter the above fraud is limited,it is difficult to match the development speed of enterprises,which enables listed companies to openly use policy loopholes to legalize financial irregularities.In recent years,China's capital market to Zixin pharmaceutical,Letv and Jiu Hao group and other listed companies as typical,frequently occurred related party financial fraud malignant events,seriously hit the enthusiasm of investors,but also to the development of the capital market caused a great impact With the decreasing tolerance of investors and the public to the financial fraud of listed companies,as well as the increasing supervision and punishment of regulators,related party transaction fraud audit has become an important research topic in the field of audit theory and practice,which is worthy of in-depth discussion.So this article through the academic research results at home and abroad for reference,and in combination with the affiliated party transactions fraud audit on the basis of relevant theories,through the case analysis,the method of selecting one of the typical representative of Internet industry enterprises ——Letv as he research object,in-depth analysis of the innovative business mode challeng brought about by the affiliated party transactions fraud to a third party audit In he new form,Letv makes use of the huge network of related party transactions to form a unique form of related party transactions,and realizes the high-speed floof resources within the related ecosystem in a self-sufficient way,so as to realize the creation,transmission and transfer of interests between listed companies are related parties more concealingly and smoothly.Within afew short years,Letv network achieved the rapid expansion beyond the law of the market and times the increase in value,the stock price all the way up at the same time also gradually exposed a lot of clues related party transactions.However,Shinewing Zhonghe accounting firm,which has been engaged in auditing business with Letv for many ears,failed to identify the fraud risk of related party transactions in the audit process for several consecutive years,avoided to talk about the problems of related parties and their transactions,and issued inappropriate audit opinions.It was not until2017 that letv changed its auditing agency to Lixin accounting firm that a thunderstorm occurred With the continuous attention of the society,the related party transaction fraud of Letv and the dereliction of duty of Shinewing Zhonghe accounting firm were exposed.Further analysis of the fraud audit of related party transactions mapped out by Letv events shows thatcertified public accountants failed to find hidden related party transactions and related party transactions in the audit process due to inadequate fraud risk identification and evaluation,irregular audit analysis procedures and methods,and lack of quality and professional ethics of auditors The financial statement fund abnormity and so on concealment extremely strong fraud question,regarding the financial statement to reflect the receivable amount excessively big,the unusual fund flow and the unreasonable statement subject amount proportion and so on question also has not paid attention.Through a full theoretical review and case analysis,this article concludes from the perspective of the accounting firm and the relevant regulatory authorities,and proposes the firm's audit strategy for dealing with related party transaction fraud and the relevant department's auditing system for related party transaction fraud auditing.Guarantee to provide certain enlightenment for improving the quality of China's related party transaction fraud audit.