The Research On The Deficiency Problems In Internal Control Of The Related-party Transactions In Listed Company

The related-party transaction refers to the items that occur between a listed company or its subsidiaries and its related parties in resource translocation and obligation transfer.The behavior of related-party transactions can help enterprises to make an efficient earnings management to improve operating performance and enhance the experience communication among companies.With the emergence of assets reorganization in 1990 s,the domestic related-party transaction have a rapidly development and grow more and more violently.However,most of the listed companies in the domestic securities market are formed through restructuring state-owned enterprises,as a result,all listed companies have a close relationships with their holding subsidiaries.In addition,due to the nature of related-party transactions,anonymity and complexity,so many domestic enterprises,especially some large listed companies,have taken advantage of this nature to false financial information,which makes the adverse effect of related-party transactions more and more obvious,harms the interests of minority shareholders in company as well as outside investors,and hinders the benign development of the national securities market.As these problems continue exposing,related-party transactions,as a carrier of many accounting fraud,its positive role seems to disappear.Therefore,in order to achieve the establishment of scientific internal control mechanism and promote well-ordered development of securities market in China,standardizing the behavior of related-party transactions by legitimately adopting the internal control system must be addressed,which is the common responsibility of all listed companies.The current external supervision of related-party transactions in domestic listed companies mainly involves four areas: accounting standards,auditing regulation,tax system and securities regulations,which reflect their goals and focus from all aspects.However,the external supervision has its own limitations,so only through the external supervision,non-fair related-party transactions cannot be fully inhibited.In parallel with the introduction of external supervision,it is more needed for enterprises to increase their own alertness.That is to say,a enterprise should start with itself and improve the internal control system of related-party transactions to achieve an efficient standardization and supervision of the behavior.Combing the theory with the case study,this thesis analyzes the deficiency problems in internal control of the related-party transactions in domestic listed companies.According to the research design of raising the problem,researching the problem,and solving the problem,taking the theories as guidance,such as,COSO five factors,ERM three dimensional framework,information asymmetry,etc.,from five perspectives of the related-party transactions—environment control,risk assessment,activities control,information and communication and supervision,selecting Henan DaYou Energy Co.,Ltd as the research object,the thesis digs out the potential reasons why the audit reports of internal control were denied in three consecutive years,on the basis of its audit reports from 2013 to 2015,self reports about internal control and some other documents.Furthermore,the thesis also makes an analysis on the deficiency in internal control of the related-party transactions in DaYou Co.Ltd,respectively from the situation of related-party transactions and the situation of its internal control.In addition,combing the key link of the inefficient performance of the existing internal control of DaYou Co.Ltd in three consecutive years,the thesis provides rectification measures and path selections,from five aspects of environment control,risk assessment,activity control,information and communication and supervision,to maximally prevent the deficiency in internal control of related-party transactions.The thesis innovatively takes advantage of internal control view to dissect the key link in the process of enterprise related-party transactions and dig out the existing problems in every link,in the hope of proving corresponding suggestions and offering some references to other listed companies in our country.