Discussion On The Audit Of Huaze Cobalt&Nickel Related Party Transaction

With the overall deepening of economic system reform,China's capital market is also constantly developing and improving.In order to cope with the increasingly fierce market competition to obtain a strategic advantage,listed companies often choose mergers and joint ventures to expand their scale and achieve synergy.Along with this,the use of related party transactions by listed companies is becoming more and more frequent,on the one hand,it improves the economic efficiency and efficiency of the enterprise,and on the other hand,it also provides related companies with opportunities for financial fraud and profit manipulation.Along with this trend,while the fraud of related party transactions harms the legitimate interests of relevant investors,the normal order of the market economy is disturbed,and has become a“stumbling block” for the healthy development of the capital market.At present,there are more and more forms of frauds in related party transactions,and they are becoming more and more complex and hidden.Related party transactions have long become the focus and difficulty of auditing,which poses huge challenges to daily audit work.Although China has promulgated relevant auditing standards for related parties,most of them are principled regulations.Since the theoretical research is separated from the actual situation,the guiding role for practice is limited.At present,the current status of China's related party transaction audits is still not optimistic.The frequent occurrence of audit failure cases has become the focus of social attention.Therefore,in the face of such a severe situation of related party transaction audits,it is of practical significance to conduct research on listed company related party transaction audits.This article takes Huaze Cobalt&nickel related party transaction audit as the research object,and uses a combination of theory and case to show the current status and problems of listed company related party transaction audit.It analyzes and discusses to improve the audit procedures and methods of related parties and their transactions.It is helpful to improve the audit quality of related party transactions in China.Based on extensive reading of related literature on audits of related party transaction audits of listed companies,specific analysis is performed on the specific operations of risk assessment procedures and risk response procedures of Huaze Cobalt&nickel related party transaction audits.Analyze the problem,and dig deep into the reasons behind it,and then put forward constructive countermeasures from four aspects,including the standardization of risk assessment procedures,theoptimization of audit methods,the improvement of CPA's own capabilities,and the strengthening of the internal management of accounting firms.This article consists of six parts.The first part is an introduction,which introduces the research background and significance of this article.It sorts out relevant domestic and foreign literature from three aspects: related party transactions,related party transaction audit risks,and related party transaction audit methods.Method and set up the research framework.The second part is an overview of related party transaction auditing theory.It mainly includes the definitions of related parties and their transactions,and the meaning and principles,content,risks and theoretical basis of related party transaction audits.The third part is the audit overview and problems of Huaze Cobalt&nickel related party transactions.By introducing the basic situation of Huaze Cobalt&nickel,starting from the fraudulent methods of Huaze Cobalt&nickel related party transactions,it elaborated on the audit procedures implemented by R CPAs,and pointed out that there were no hidden related parties identified There are four aspects: the relationship,the invalidation of the internal control audit of related party transactions,the lack of sufficiency and appropriateness of the obtained audit evidence,and the publication of inappropriate standard unqualified audit opinions.The fourth part is the analysis of the reasons for the problems in the audit of Huaze Cobalt&nickel related party transactions.According to the related theory of related party transaction auditing,the reasons for the problems in the audit of Huaze Cobalt&nickel related party auditing are mainly as follows: the risk assessment procedures for related parties and their transactions are not performed properly,the special audit method of related party transactions is not properly used,and the certified public accountant Insufficient practice capacity and flaws in internal management of R CPAs.The fifth part is to propose countermeasures to improve the audit of related party transactions.This section mainly proposes improvement measures for the reasons for the problems in the audit of Huaze Cobalt&nickel related party transactions.It is concluded that due to the difficulty of related party transaction audits,the following four aspects need to be completed to improve the related party transaction audits.First,effectively execute related party transaction risk assessment procedures,starting from understanding the internal and external environment of related party transactions of the audited unit,focusing on the effectiveness of internal control of related party transactions of the audited unit,and ensuring the accurate identification of risk factors for fraud in related party transactions.Secondly,toimprove the special audit method of related party transactions,it is mainly implemented by strictly controlling the reliability of the related party transaction letter verification results,performing detailed tests on related party transactions with the help of extended audit,and focusing on the overall analysis and review of related party transactions.Third,only by strengthening the auditor's ability to identify related parties and their transactions,and improving the professional literacy and independence of certified public accountants,can we properly select the types of audit opinions,thereby improving the quality of certified public accountant practice.Fourth,the accounting firm should strengthen internal management,including careful selection of clients and undertaking auditing business,improving the quality evaluation indicators of related party transaction audits,and improving the application level of the accounting firm's informatization.The sixth part is the conclusion,which summarizes and prospects the conclusions obtained in this article.