| At present,in the daily business activities of listed companies,there are a lot of related party transactions.On the one hand,affiliated transactions can reduce transaction costs and improve operational efficiency.On the other hand,because of its complexity and concealment,affiliated transactions have become a means of fraud.Because the related party transactions are hidden,complex and easy to operate,and have great risks in auditing,there are many cases of audit failure in China this year,such as Green Earth.The fraud of related party transactions in Kangzhi Pharmaceutical Industry has not only caused huge losses to investors,but also affected the image of fair and impartial auditing,and has caused many negative impacts on society.It is precisely because the related party transaction is not only a common risk factor of fraud,but also an important and difficult point in auditing.In the study of preventing irregular related party transaction,it is mainly from the perspective of improving laws and regulations and internal control,and less from the perspective of external auditing.Therefore,this paper uses case study method,taking D firm audit Y company related party transactions as an example,and elaborates in detail how to implement the related party transaction audit under the guidance of risk-oriented audit theory.Find out the problems existing in the audit and analyze the causes of these problems.Finally,it gives some suggestions,hoping to have some reference value for the CPA industry to audit related party transactions.After analyzing the related party transactions of Y company audited by D firm,it is found that D firm has basically implemented risk assessment procedures in accordance with the requirements of auditing standards to identify and evaluate the fraud and risk that may lead to errors in related party transactions,and has taken corresponding measures.However,there are some deficiencies in audit procedures,work attitude and audit reports.From these perspectives,combined with the newly published audit standards,the author gives some pertinent suggestions,which are to improve the audit procedures,improve the professional quality of CPAs and issue differentiated audit reports in order to reduce audit risks and narrow the information gap between users of statements and enterprises.At the same time,it is found that due to the inherent limitations of external audit,only relying on the supervision of external audit is not enough to resist the risks arising from related party transactions.It also needs to be guaranteed from the perfection of the standards,the perfection of laws and regulations and the governance of internal control of the company.Three-pronged approach can minimize the risk of related party transactions. |
