Research On Related Party Transaction Audit

On the basis of learning and drawing lessons from related related party transactions and audit research results and practical experience at home and abroad,based on the principal-agent theory,fraud triangle theory and information asymmetry theory,this paper combines literature research and case analysis,takes Xinyongzhong and the related transaction of let V as the research object,and reveals the problems in the audit process: It includes failing to identify and hide related parties and their transactions,failing to implement effective audit procedures for abnormal related party transactions,failing to notice abnormal changes,and failing to disclose audit reports in a standardized manner.Through the analysis of the causes of the problemIn today’s economy,in order to maintain a leading position and improve market competitiveness,enterprises will choose to obtain resources at the lowest price and reduce costs through related-party transactions,thus improving their pricing advantages.Because related party transactions are not easy to be discovered,managers are easy to use this way to carry out unfair transactions,so as to achieve fraud.If the lack of control of unfair related party transactions,it will not be conducive to the positive development of the economic market.As an independent third party,the firm is responsible for ensuring that any abuse of related-party transactions is detected in a timely and effective manner when conducting an audit of the audited entity.Therefore,in order to ensure the quality of audit and improve the credibility of audit results,it is necessary to strengthen the supervision and inspection of related party transactions through various means.However,in recent years,improper audit opinions often appear in audit reports of accounting firms,which are mostly caused by the failure to timely discover problems existing in related party transactions.Therefore,report users do not trust accounting firms.It can be seen that related party transaction fraud brings huge losses to accounting firms.Can seriously reduce the firm’s reputation and social image.Therefore,it is of great theoretical significance and practical value to study the related party transaction audit problem to curb and prevent related party transaction fraud.sin the audit process,it is found that the main performances are: CPA did not fully understand the business conditions of enterprises,did not maintain enough professional doubts in the audit process,did not perform the audit procedures related to related party transactions in place,and the accounting firm business quality control system is not perfect.In view of the above problems and causes,corresponding countermeasures and suggestions are put forward,including scientific identification of abnormal related party transactions,establishment of reasonable related party transactions audit process,improvement of auditors’ professional level and professional suspicion attention,strengthening of internal business quality control of accounting firms,and improvement of relevant legal system.The innovation of this paper lies in the following aspects: First,most of the previous academic cases on related-party transaction audit took traditional manufacturing enterprises as examples,while this paper selected the software service industry that emerged in recent years and took Leshi Internet,which has a huge amount of related-party transaction,as the case study.Second,most of the previous academic studies on let V focused on financial issues,while this paper selected the audit matters of relating-party transactions as the research perspective,through case analysis,revealed the problems existing in the audit of relating-party transactions of let V by Xinyongzhonghe,and put forward some countermeasures and suggestions to help CPAs carry out the audit practice of relating-party transactions.These conclusions may provide some references for improving relevant systems and standards.