Research On Audit Of Capital Occupancy Of Huaze Cobalt-nickel Company

The problem of capital occupancy by related parties often interferes with the order of China's capital market.Although the securities market is becoming more and more mature,due to the imperfection of management system,supervision system and market lag and other factors,the use of related party transactions to transfer funds of listed companies occurs from time to time.In view of the fact that CPAs are confronted with various means of capital occupation,difficult to define the relationship between related parties,and difficult to identify in the process of auditing,this also brings great challenges to CPAs undertaking audit business.Therefore,the innovative research on the audit of related party's fund occupation will help to provide a theoretical basis for audit practice and promote the healthy development of capital market.In this paper,case analysis and normative study are combined to take Huaze Co-Ni as a case study.In the process of understanding the failure of Huaze Cobalt-Nickel related party fund occupancy audit,this paper analyses the situation of the accountants' malfunction in the work of Ruihua Accounting Firm,which leads to the thinking and Enlightenment of strengthening the related party fund occupancy audit.It is found that Huaze cobalt and nickel embezzle the company's legitimate capital by means of affiliated parties,non-affiliated third parties,false bills and irregular guarantees.Starting from the audit work of Ruihua Institute,this paper comprehensively analyses the failure process of related party fund occupation audit,puts forward reasonable suggestions for related party fund occupation audit,and provides a case study with reference value for audit practice.