Study On The Audit Risk Of Related Party Transactions Of Listed Companies

At the present stage,the market economy is developing at a faster pace,and with the momentum of rapid development,the proportion of related transactions is gradually increasing in the transactions of various enterprises.The related transaction has its own characteristics,namely the unique two sides.In the face of fierce and cruel market competition,linked transactions gradually become a common means of intra-enterprise transactions.Enterprises can not only improve efficiency through appropriate related transactions,but also reduce the transaction cost of enterprises.But most of the time,when the enterprise management difficulties and pressure,often by means of unfair related transactions of the trade,to the interests of the transmission and manipulation,bring great losses to shareholders.In view of the current situation in China,the related risk of related transaction audit has become a very sensitive topic in the field of audit.In terms of risk assessment and how to correctly identify and evaluate related party relationships,it has become a key link in the audit practice to find out that the risk of significant misreporting in association intersection.In terms of cost control,related party transactions,although can save money for the enterprise,enhance the controllability of enterprise economic activity,so produced for legitimate business activities and to fair value measurement of related transactions are legitimate business activities.Many listed companies in our country,however,is itself out by its own high-quality assets formed subsidiary listed again,complex relationship between them with the parent company,in order to safeguard the group's overall development,or when some companies operating performance decline to preserve public pressure to exist,such as the qualification will be induced through illegal connection transaction inflated profits,whitewash financial statements,severely damaged the balance of the market economic order,influence the capital market efficiency of capital allocation,is more serious is that this will give investors with significant losses.The managers of listed companies in order to obtain the improper benefit,will often try to use various methods to avoid government regulators and external auditors,under this environment,related party transactions became more complex and more subtle.Certified public accountants,therefore,if can not correctly recognize the relation between the fair deal,may lead to more small and medium-sized investors' interests by erosion,the government's regulatory costs will be greatly improved,the bad loans and the credit risk of the bank.Audit of related party transactions between the listed company,should be cautious of certified public accountants professional doubt and design targeted auditing procedures,focus on the areas of misstatement risk is higher.It is of great theoretical and practical significance to carry out relevant research.Through to Z group of related transactions fraud means in-depth analysis,found violations are connected guarantee of listed companies related transactions of relevance The relation between the fair credit through asset lease arrangement of related party profits and other issues For the above problems,analysis how to audit risk assessment and response analysis of these problems and analyze the intrinsic and extrinsic,prevention of audit risks should be find out problems and put forward countermeasures to improve Purpose is encountered in the process of the certified public accountant in the audit risk to an acceptable low level,improve the ability of the auditor,to lay a good foundation to perfect the system of associated business in our country.