The Exploration Of Look-through Concept Assists Audit

With the rapid development of China’s economy,the market continues to expand,and the types of transactions are constantly evolving.The prosperity of the economy is accompanied by the continuous increase of market risks.In the financial field,the pricing and transaction mechanisms of innovative financial instruments are highly complex and the derivative chain is lengthy.In 2016,China first proposed the concept of "Look-Through Supervision".Since then,"Look-Through" has become a hot topic in the financial field.This paper introduces the concept of " Look-Through " into the field of auditing to assist auditors in their work,starting from finding undisclosed actual controllers of enterprises,examining connected transactions led by invisible actual controllers,and ultimately protecting the interests of small and medium shareholders and maintaining market stability.This paper selects Jiangsu Sihuan Biological Co.,Ltd.and Kaidi Eco-Environment Technology Co.,Ltd.to conduct a double case study,and conducts top penetration and bottom penetration for the two cases respectively.Penetrate the source of funds and equity structure at the top,start with finding the actual controller that is concealed,first determine the actual controller,and then determine the related party transactions;To start the activity,first review suspicious related transactions,and then determine the actual controller.From the above two "Look-Through" points,it is possible to open up the connection between the invisible controller and related illegal and illegal operations,and provide a more transparent market environment for investors,creditors and other market participants.This article is divided into four parts for writing: first,the original intention of the topic selection and the existing research results of domestic and foreign scholars in related fields,and the concepts and theories involved in this article are elaborated;secondly,the occurrence of the case is sorted out,respectively introduced the occurrence time,operation methods and related transactions of the two cases;thirdly,the two cases were penetrated from the top and bottom respectively,and the "Look-Through" concept was applied to practice;finally,provide regulatory authorities and auditors with methods and suggestions for the application of the "Look-Through " concept to the field of auditing.