Research On Audit Risk And Responses Of The Transfer Pricing In Enterprise Group

The enterprise group in China plays an significant role in the national economy.In the modernization process of economic development,the transfer pricing strategy eliminates the government regulation and makes the difficulty of the independent third party audit become harder to move on.All above phenomenon is resulted in the diversity,complexity and uncertainty of the transfer pricing strategy.Therefore,the investors' interests is becoming more and more harder to protect.Transfer pricing is often used as an effective management tool.In this way,the enterprise group's stakeholders can achieve the optimization of enterprise group within the business scope of the allocation of resources,and the maximum benefits.At the same time,based on the financial statements fraud,the transfer pricing can make the enterprise tax evasion,tax avoidance,manipulation of the financial statements,transfer funds,transfer the profits,and even can affect the enterprise stakeholders when they make decision.As an independent economic supervision activity,auditing plays a vital role in these aspects that maintaining the discipline of financial and economic environment and improving the enterprise management.Especially in the statements that the enterprise group usually use transfer pricing for achieving the financial statements fraud,the audit as an independent economic supervision activity can guarantee the fairness of business,in order to increase the confidence of investors.In this paper,through the analysis of the effect of environment change on enterprise group transfer pricing,combined with case,the writer wanted to analysis and evaluate the audit risk existing in the transfer pricing practices that accounting firm faced,tried to reduce the transfer pricing audit risk so that improved the efficiency of transfer pricing and suggested significant and practical recommendations.