Study On Audit Risk Of Related Party Transactions Of A Firm

The communist party of China(CPC)has stressed the importance of accelerating the establishment of a modern financial system and further clarifying the objectives and main tasks of the reform of the fiscal and taxation systems.The economic development of the society have a more higher requirement on the quality of the accounting information,but as the economic and social development at the same time,enterprises bigger and stronger constantly,the affiliated party transactions has become increasingly grow in quantity,the amount involved is becoming more and more important.Even some enterprise due to increase profits,improve the income of motivation,use secret of related party relationships,the unfair related transactions to whitewash financial statements,certified public accountants audit work caused by the difficulty of rights to add,increase firm’s audit risk.Audit risk at home and abroad,this paper,the research achievements of related parties and transactions,the audit risk management,to effectively prevent and control A firm affiliated party transactions for the purpose of audit risk,A firm auditing business association and its transaction audit risk.From the current situation of the related party and its transaction audit of A firm,it is learned that the relationship of the main unit of audit of A firm is complicated,and the related party’s transaction volume is highly dependent.However,when the transaction of A transaction is carried out,it shows the current status of the process.To effectively control the audit risk is A firm affiliated party transactions,the author take the analysis of A firm’s related parties and the transaction process and its related work and A combination of A firm’s specific related party audit cases,for A firm to the affiliated party transactions of the audit process analysis and hierarchical analysis is,mathematics method of fuzzy evaluation of specific audit cases A firm affiliated party transactions audit risk analysis,it is concluded that A firm affiliated party transactions,the cause of formation of audit risk and gives the corresponding countermeasures and Suggestions.