A Case Study On The Audit Of Related Party Transaction Of Zi Xin Pharmaceutical Industry

The development of the securities market is somewhat beneficial to the vigorous development of China's market economy,but the opportunities are also mixed with certain risks. In the process of continuous improvement and development of China's market economy,enterprises to expand their scale through restructuring,acquisitions,mergers and other ways to enhance the industry's competitiveness. Many companies,such as Lenovo has been achieved transnational mergers and acquisitions. In the high-speed economic development in the process,the relationship between enterprises has become increasingly complex, transactions between related parties more and more,the transaction amount is also growing, increasingly connected transactions by the parties concerned stakeholders. "Silver Guangxia event", "Enron incident" these fraud cases vividly, each listed company's financial fraud and the audit failure of the firm are more or less affect the market every participant. The audit of related party transactions has become the place of multiple failures in the audit because of its own concealment and diversity.In order to better reflect more related party transaction information of listed companies to help investors and users of financial information to understand each listed company's financial condition and results of operations, while also helping listed companies to establish a good corporate image, promote the value of the company to get good expression.This paper introduces the background, purpose and significance and research content and methods of research.Under the premise of understanding the background of the related transaction of Zixin Pharmaceutical, I have communicated with the auditors who have the experience of the related transaction audit to find out that there are problems in the auditing of the related party transactions of Zixin Pharmaceutical.These issues include the fact that auditors do not maintain their due diligence,that there is a defect in the quality control of the accounting firm, that all related parties are not fully identified. From the operational capacity of the staff, the quality of the accounting firm's control system construction, social relations executive level, important aspects of customers and suppliers for reasons of investigation of these audit issues systematic analysis, according to the results of the analysis, the paper puts forward some suggestions on how to deal with the similar cases in the future and provide constructive revelation and reflection for the auditors' more comprehensive audit.