A Case Study On The Fraud Audit Of Related Party Transactions Of YM Company

As increasingly internationalized and diversified economic development, business competition is becoming increasingly fierce, the enterprise's financial structure has become more complicated, making fraud is more difficult to identify. Only in the year 2016, a total of 135 copies of the administrative penalty is issued from the China securities regulatory commission,11 of which involves financial fraud problems,such as Guarantee agriculture, Beidahuang agriculture, Shandong good alone, Great wisdom,such as accounting fraud, the Xin tai electric but because counterfeiting delisting first orders in history,and foreign and exposes the Toshiba involves communication business of financial fraud, inflated profits, 5.8 billion yen, constantly challenging the sensitive nerve. The proliferation of accounting fraud, investors and creditors suffered huge economic losses,but also make the capital market confidence crisis intensified, the global economy has brought the huge impact.The affiliated party transactions is a kind of special trade form, its advantages and disadvantages are also exists: on the one hand, if considering from the level of institutional economics, it be bound by the principle of competition in the market than the traditional independent trading much less, therefore, the affiliated party transactions can save a lot of management cost, supervision cost, information cost, achieve the purpose of cost saving, realize the rights and interests of the company group profit maximization; On the other hand, if you think about it on the legal side, the legal equality between the parties in the relevant parties does not mean that they are completely equal.When motivated and driven by interest motives, the actual control of the company is often abused by the people involved. How does a certified public accountant find and disclose financial fraud in the business of conducting affiliate transactions? It is impossible to meet the requirement of self-regulation by enterprises, and it is imperative to increase the auditing of related party transactions by external auditors.In this paper, we analyze the problems of the auditing process of the related party transactions. Firstly, the paper introduces the research background and the research significance, the research content and the research method. Followed by case description,first described the object of study YM company's basic situation, the following describes the general situation of the related party transactions YM company, and describes the certified public accountants from the Angle of certified public accountants audit failures and the registered accountant "blind" eventually eat "consequences" two typical events reflect the audit fraud problem. Again, the analysis of the causes of the audit of fraud for the affiliated party of YM. First discusses the concept and theoretical basis of the fraud audit, and use the fraud triangle theory and principal-agent theory, analyzes the YM company, the cause of the affiliated party transactions fraud audit issues. Then countermeasures and Suggestions are put forward for the cause of the problem. The fifth part is the conclusion, which summarizes the full text and points out the shortcomings of this article.