Research On The Related-party Transactions Audit Of Biological Pharmaceutical Industry

With the expansion of the scale of economic activities,enterprises shareholding relationship are more and more perplexing,compared to the independent market transactions,related-party transactions are of less uncertainty and low transaction risk,which can integrate internal resources of the enterprise and improve economic efficiency,on the other hand,related transactions can be easily manipulated by listed companies to whitewash report or transfer profits.As related-party transactions are of concealment and complexity,especially when the audited units deliberately hide some key information,the CPA audit procedures generally are impossible to recognize the transactions,it will not only increase the risk of audit failure,but also disrupt the normal operation of the securities market and damage the interests of minority shareholders and other stakeholders in the market.Therefore,it is of great importance to study the problems and risks in the audit of related party transactions of Listed Companies,and put forward the corresponding countermeasures to reduce the risk of CPA audit failure.Based on this,this paper takes example of Beisheng Pharmaceutical Co.financial fraud case,by means of literature analysis and case study methods adopted by the listed companies on the use of related party transactions common means of financial fraud,and CPA carries on the analysis to the north are pharmaceutical related transactions in the audit project the problem.The study found that the use of related party transactions of Listed Companies in the main means of financial fraud are as follows:abnormal or inappropriate financial transactions between related parties;the fictitious or not approved transactions for the company funds;hiding incomes that are from undisclosed related party,or making up incomes from related party.The main problems exist in the CPA audit of related transactions in the process are:the lack of the audited units and communication;to the attention of related party transactions audit risk entirely;audit procedures related transactions,the implementation is not in place;the audit staff occupation literacy lack;finally,separately from the laws and regulations level put forward the establishment of related party transactions prior disclosure system and establishing the audit responsibility of "accountability",from the perspective of accounting emphasizes the audit process follow substance overform auditing principles,while emphasizing the CPA should strictly enforce the three level internal review system of audit,and strengthen the quality supervision and the internal audit of the related party transaction business.