Audit Research On Implicit Related Party Transactions

In recent years,the capital market has become increasingly active,followed by the increasing phenomenon of mergers and acquisitions,backdoor listing,etc.,which leads to the listed companies’ related parties become more and more hidden,and it is difficult to be found and identified.The gradual increase of this situation not only seriously affects the improvement process of China’s capital market,but also gradually strikes the enthusiasm of small and medium-sized investors in the securities market.The users of financial statements are increasingly questioning the quality of audit reports provided by the firms,and the pressure faced by the firms and auditors is also growing.In the current market background,there is little research on the audit of implicit related party transactions in China,and most of the previous case studies on related party transactions are from the perspective of audit failure,to analyze the reasons for audit failure,and to make suggestions to avoid audit failure.However,in the selection of cases,I hope to start from other perspectives,so I choose a successful case of the audit of implicit related party transactions,according to how the auditors identify the implicit related party and what audit procedures are implemented,so as to provide reference methods for the audit of implicit related party transactions,reduce the audit risk and avoid the occurrence of audit failure.The first part of the article mainly introduces the research background and significance,research status and literature review,research content and methods,as well as the existing innovation and shortcomings of the audit of the implicit related party;the second part introduces the related concepts and theories of the implicit related party,and defines the implicit related party;the third part makes a brief introduction to the audit case of company a by the selected r firm Single introduction;the fourth part analyzes the audit process of R firm to a company’s implicit related party transactions,mainly analyzes how auditors identify the implicit related party and the audit procedures adopted,and then draws audit conclusions;the fifth part summarizes some methods of implicit related party transactions audit on the basis of case analysis,and draws some common references The sixth part is a summary and prospect.The innovation of this paper lies in that the research content has certain innovation,and in the case selection,we did not choose the conventional audit failure cases,but chose the cases that the firm issued the reserved opinion,which belongs to the scope of audit success,in order to provide reference for the later implicit related party transaction audit.