Study On Audit Of Related Party Transactions Of Jiangsu Yabaite

With the rapid development of the market economy and the increasingly fierce market competition,some listed companies may choose to manipulate their performance through financial fraud to meet financing needs under the pressure of shortage of funds or the risk of delisting.Among them,related party transactions are used.Fraud is a common method.Due to the hidden and complicated characteristics of related party transactions,corporate management can build hidden related party transactions through complex social relationships,such as setting up a shell company,using third-party "bridge companies" to disassemble transactions,etc.These related parties only It is difficult to identify through financial statement disclosure,which brings great difficulty to the audit.In recent years,due to the failure of certified public accountants,there have been numerous cases of failed audits of related party transactions in the market.As the gatekeeper of the capital market,certified public accountants should reasonably formulate audit plans based on industry characteristics,design special audit procedures for related party transactions,and maintain capital The economic order of the market.In order to more accurately understand the problems existing in the audit process of related party transactions in China and propose optimization strategies that can be used for reference,this paper analyzes in detail the status of financial fraud in listed companies in China using related party transactions and the problems existing in the audit process.The reasons why companies use related party transactions for fraud,explore the areas where the related party transaction auditing procedures can be optimized,and select the financial fraud cases that have caused great repercussions in the capital market in recent years for analysis,in order to put forward effective suggestions for related party transaction audit To provide a reference for accounting firms to improve audit quality and reduce the risk of audit failure.This article first defines the related party and related party transactions;elaborates the main forms of related party transactions;sorts out the relevant causes of financial fraud;this article uses case analysis as the research method and selects Jiangsu Yabaite Technology Co.,Ltd.as the case company.The analysis of Yabaite’s use of related party transactions to conduct financial fraud,and analysis of the reasons for audit failures from the CPA level,the audited entity level,and the audit industry environment,and found that the CPA failed to perform his due diligence in the audit process It is the direct cause.The motivation of the company to use related party transactions for fraud is the root cause,and the irregular environment of the audit industry is the external cause.According to the reasons found in the case analysis,it puts forward the countermeasures for the optimization of related party transaction audits and makes policy recommendations for CPAs and accounting firms.It is recommended that CPAs should strengthen their professionalism and follow the principle of substance over form.It is recommended that accounting firms can conduct Joint audit,focusing on project quality control.The purpose is to increase the degree of attention paid by auditors to related party transactions of listed companies and reduce the risk of audit failure,thereby effectively inhibiting listed companies from using related party transactions for financial fraud and promoting market regulation.