Research On The Audit Of Related Party Transactions Under The Business Ecosystem

As the new economic era begins,the "three new technologies" economy is gradually becoming a highlight of China’s economy,playing a vital role in supporting the recovery of the real economy.Among them,the construction of "new business model" is inseparable from the business ecosystem on which the enterprise relies to form its core competitive advantage.At present,the number of enterprises is increasing,the scale is growing,and the competition is more and more fierce.More importantly,the product is no longer the main stage of competition,but a new point of competition is placed on the construction of the business ecosystem.In the process of constructing their own ecosphere,the value chain and benefit network will inevitably be formed,and a large number of related party transactions will occur frequently.Related party transactions have always been one of the most challenging areas for auditors,and China has not yet formed a complete legal supervision system for the diversified income model of the business ecosystem.Therefore,it is quite difficult to audit related party transactions in the commercial ecosystem.Looking back at the development of the capital market in recent years,there are frequent incidents of financial fraud by the use of related party transactions,and there is no lack of cases of audit service institutions and personnel being investigated and given administrative punishment by CSRC due to the failure of the audit of related party transactions.With the landing of the new Securities Law,the regulatory authorities will impose more severe penalties on listed companies with securities violations.In addition,in April 2020,the CSRC further strengthened the supervision of listed companies and immediately forced delisting of listed companies with financial fraud.Based on the market discipline,and comply with the maintenance of market order,it is necessary for business ecosystem under the affiliated party transactions to keep high attention,and in-depth research,to find a solution to improve this kind of business model under the affiliated party transactions audit countermeasures,further improve the quality of the auditor to the audit work related party transactions.This paper draws on the relevant academic research results at home and abroad,and selects Le TV Network,a typical enterprise in the construction of the ecosystem,as the research object through case analysis.The company was once the star of the Internet industry,the industry’s first application content and terminal to achieve a perfect integration of the new business model of enterprises.However,Letv was delisted from the Shenzhen Stock Exchange on July21,2020 due to continuous losses and other reasons.A close look at the development process of its listing in the past ten years reveals that the management layer has woven a complicated and confusing network of related transactions under the special business ecosystem,and the number of related parties and the transaction amount have increased year by year.In 2016,due to the huge amount of related transactions,a large number of receivables were formed,and there was a risk that the maturity could not be recovered.Therefore,the audit agency issued an audit opinion with emphasized item section.The related party transactions under the Letv ecosystem strategy reflect that under the "new business model",the subject of related party transactions becomes more complex and more frequent transactions between leading enterprises and sub-ecological enterprises as well as between sub-ecological enterprises,which increases the difficulty of auditing.It also reflects the overspread of the cross-linked side network under the ecosystem strategy,which leads to the failure of the enterprise’s capital chain breaking,management chaos,and delisting.Through the case analysis of Le TV Network,this paper focuses on the problems found in the audit of Letv related party transactions in 2015 and 2016 and their causes,and reveals the impact of new characteristics of related party transactions of enterprises in the business ecosystem on the audit work.It is expected to provide useful reference for accounting firms and their auditors on how to conduct related party transaction audit in the business ecosystem.