Research On Affiliated Party Transactions Audit Failure

With the rapid development of China's economy,the number of affiliated companies is also increasing,related parties play an important role in improving efficiency and providing convenience in the economic development of the company.In recent years,many cases have been punished for the failure of related parties and their transaction auditing,such as dengyun shares,pegatron shares,wanfu shengke,substar chemistry,etc.And because relevant certified public accountants and auditing staff do not to complete the audit work diligently,thus failed to appropriate audit opinion,audit failure,further affect the whole industry credibility,more to the whole system of social economy and the relevant regulatory impact.Accounting firms and auditors should learn from the experience,summarize relevant experience,reduce audit risk and improve audit quality.The author summarizes some information,including fined from 2007 to 2017 of listed companies and accounting firms,it is concluded that companies that use the method of the affiliated party transactions fraud and audit failure caused by firm related to common problems.I chose the specific case of the audit of dengyun shares,and through specific analysis of the case situation and penalty documents,I came to the conclusion that dengyun shares used the relationship between related parties to fabricate customers and related businesses,failed to disclose related party enterprises and transactions in accordance with the requirements of the standards,and used related party enterprises to increase profits falsely.Concluded that the cause of nobunaga and certified public accountants audit failure may contain the following aspects: the cover-up of the auditees,regulators and the auditees to related party to understand different,auditors failed to strictly carry out the audit procedures,not enough attention of anomalies and transactions,the auditor's practice ability insufficiency,the firm's internal quality control system is not sound,etc.I put forward some own views,including carefully choose audit project,establish a more reasonable and effective related-party transactions audit procedures,improve the auditor's professional,the professional ethics construction level,and strengthen internal management and external contact certified public accountants themselves,these help to audit work orderly.The innovation of this paper is that this paper summarizes the cases involving the failed transaction auditing of related parties in the last decade,and makes a key analysis of the firms that have been punished for many times,and draws relevant conclusions.However,due to the limited data collected by the author,there may be some limitations in the analysis of reasons and Suggestions,and the conclusion needs to be tested in practice and further investigated.