Risk-oriented Related Party Transaction Audit Research

In recent years,the securities market has developed rapidly,and related party transactions have become more common.Related party transactions are a double-edged sword.On the one hand,it helps to reduce transaction costs,strengthen cooperation among enterprises,promote the expansion of enterprises,and even promote the transformation of enterprises into internationalization.On the other hand,due to the concealment of related party transactions,Corruption of related party transactions is difficult to detect in a short period of time,making it a fraudulent method often used in financial fraud.For example,the notorious "Yinguangxia Incident","Enron Incident",the "Green Earth Event" and the "Wanfushengke Incident" in previous years,and the "Asia-Pacific Industrial Incident" in recent years.This series of audit failure cases has sounded the alarm for external auditors,allowing people to pay attention to the potential fraud risk area of related party transactions,and realized the adverse effects of the distortionary development of related party transactions on the benign competition in the capital market.At present,the risk-oriented auditing model is widely used in China to audit related party transactions.However,due to the defects of the auditing procedures,the lack of professional competence of auditors,and the imperfect management system of auditing institutions,there are still problems in the application of risk-oriented audit mode in the audit of related party transactions.Corruption of related party transactions has become increasingly serious,and related party transaction audit failures have occurred frequently.Therefore,it is a key concern to how to better use the risk-oriented audit mode to audit related party transactions.Based on the research results of domestic and foreign scholars on this issue,the related concepts of related party transactions and risk-oriented auditing are introduced firstly,and then the related theories of related party transaction auditing are analyzed.Then,in the period of 2008-2018,the China Securities Regulatory Commission disclosed the analysis and research on the failure of the related party transaction audit,and learned the current situation of the audit failure of the related party transactions and the problems existing in the audit.Taking the recent failure of DY company related party transaction as an example,this paper analyzes which auditprocedures should be implemented for the related party transactions of DY under the risk-oriented audit mode,and combines the punishment and public notice of the CSRC to analyze the failure of X accounting firm to audit the related parties of DY company the reason.Finally,with the support of relevant research,some suggestions for practically improving the risk-oriented related party transaction audit are put forward.