A Research On Internal Control Of The Related Party Transaction Of YSZS Company

In the company's financial and operational decisions,there are two kinds of relationships between related party transactions.There are control relationships between companies that can exert significant influence,or two companies or two parties or more have joint control over a company.For the related parties,it is determined that there is an association relationship between the companies.On this basis,the transactions that occur in the daily operation of the enterprises with related relationships are related party transactions.However,due to the market economy situation in China,related party transactions are transactions that often occur between related parties in the company's operations and are prone to unfair results.In a favorable way,companies with related relationships can trade,negotiate trades,sign contracts,etc.,save transaction costs and time,ensure quality and efficiency,and thus improve transaction results;however,related party transactions are also a double-edged sword.There are also some drawbacks,which provide opportunities for some of the lucky stockholders.Some principal stockholders and executive of listed companies use this method to transfer or transfer company profits through related party transactions.For personal gain,the profits of listed companies are stolen;in addition,executive can improve the company's performance,beautify financial statements,mislead investors and deceive minority stockholders.Unfair related party transactions of listed companies make resources unable to be most effectively allocated in the market,and inevitably increase the internal control risks of listed companies,causing losses to investors.YSZS company sold its quality assets to its major shareholder YSKG company through related party transactions,which seriously affected the development prospects of YSZS company and caused doubts and distrust of the majority of small and medium investors.This paper analyzes the shortcomings of related party transactions from the internal control,based on the internal control of COSO framework theory,the three-factor theory of fraud and so on.,analyzes the fundamental causes of the problem,and proposes how to improve the internal control of YSZS company related party transactions.The first part of the thesis is the theoretical basis,analyzes and interprets the relevant theoretical basis and norms of internal control of related party transactions,inorder to better discover the problems existing in YSZS company.The second part is case analysis,YSZS company introduces and understands YSZS company association.The current status of internal control of the party transaction,including its shareholding structure,major risk points and key control points,and then find out its problems,from the balance of major stockholders' rights,the implementation of the system and the compliance of the process,the transmission and disclosure of internal control information,etc..The third part is to understand the problem in depth,analyze the causes of the above problems,restrict the rights of major stockholders,weakly comply with the internal control system,and asymmetry of information between major stockholders and small and medium stockholders,and further link with the internal control system.The fourth part is the countermeasure suggestion part.Based on the theoretical part and the problem and cause analysis,it proposes the rectification countermeasures and path selection from the five aspects of control environment,risk assessment,control activities,information and communication,and monitoring,and improves the internal affairs of YSZS related party transactions.control.