Study On The Failure Of The Related Party Transaction Of Jiayu Shares

The related party transaction audit is an audit procedure performed by the CPA on the related party transactions that occurred in the audited entity.In recent years,CPAs have frequently experienced audit failures due to the lack of audit procedures in the audit of related party transactions of listed companies in China or the failure to maintain the vigilance of related party transactions,and the CPA The failure of related party transaction audits has led to more and more companies being punished by the Securities and Futures Commission,such as Dengyun,Zixin Pharmaceutical,and *ST Barge.Because related party transactions usually occur within the group or between companies with close relationship with the management personnel,the transaction items are diverse and the transaction process is concealed.In addition,the inherent limitations of the audit make the related party transaction audit raise higher for the CPA.Requirements,including not limited to obtaining more adequate audit evidence,for higher quality professional judgment.It is precisely because of this that the related party transaction audit has become a crucial part of the audit work.Strengthening the related party transaction audit has also become a problem that cannot be ignored in improving China’s audit work system.This paper uses the literature research method and the case study method to conduct research on related party transaction audits.In 2017,Jiayu shares were punished by the CSRC as a case,combined with domestic and foreign scholars’ research on related party transaction audits,and obtained related party transaction audits.At the same time of the characteristics and difficulties,the paper analyzes the inadequacies of Zhongzhun Certified Public Accountants in the audit of the related parties’ transactions,and summarizes the reasons for the failure of the related party transaction audit in the case,and the main reason for the failure of the related party transaction audit is the CPA.The risk awareness of the audit of the related party transactions of the audited entity is insufficient,and the severity of the related party transaction is not realized,resulting in inaccurate program setting,so that the audit work cannot guarantee the audit effect.At the same time,some CPAs are not qualified for auditing,or they cannot maintain their vigilance when auditing is performed.In addition,the CPA profession has weak supervision and punishment for CPAs.This is also an important cause of the failure of related party transactions.the reason.Then,from this case,the inspiration for the related party transaction audit is obtained,mainly because the audit target of the audited unit needs to be clear before the audit of the related party transaction,and the auditing attitude and the audit that needs to be focused on when performing the auditing process are required.In the end,it is proposed to prevent the failure of the related party transaction audit.