Research On Internal Control Of Related Party Purchasing Business Of T Company

With the development and growth of listed companies,related party transactions in the listed companies and affiliated companies continue to increase,resulting in more and more problems.Related party procurement as a common type of related party transactions,frequent occurrence in the listed company,in order to save transaction costs for enterprises,create profits at the same time,but also brought hidden dangers.For example,the controlling shareholders of listed companies use non-fair related parties to purchase,transfer the assets of the company,so that the interests flow to their own favorable party,infringe on the interests of small and medium-sized shareholders,and undermine the order of market transactions.Although China has issued a series of laws and regulations on related party transactions,but at present is not perfect,in order to protect corporate fair trade,maintain the operation of the capital market,how to improve the internal control mechanism of related party procurement has become a topic worth exploring.Starting from the reality of T company,this paper,on the basis of understanding the business process of the company's related party procurement,reveals the problems existing in the internal control of T Company's related party procurement from the aspects of authorization approval,pricing,acceptance payment,supervision and review,information disclosure,etc.,then analyzes the reasons and puts forward the corresponding suggested measures.T company related party procurement internal control mainly has the following aspects of the problem: Authorization approval Process Control is not strict,too many formal approval links,negotiation pricing is risky,price fair audit formality,acceptance payment standards relaxed,supervision and review failure,lack of comprehensive quality of internal control personnel,information disclosure is not sufficient,Predictive information disclosure is inaccurate and not timely.This paper makes a concrete analysis of these problems from the reasons of the risk of internal control of related party procurement.At the end of this paper,some suggestions for improvement of these problems are put forward: strictly controlling the authorization and approval process,optimizing the approval process,formulating the basis and standard of negotiation pricing,attaching importance to the risk assessment of related party procurement negotiation pricing,strengthening the internal audit accountability system of related party procurement,and strengthening the management of related party procurement acceptance payment;Strengthen the checks and balances and supervision of major shareholders and executives,improve the comprehensive quality level of internal control personnel,improve the content of information disclosure,strictly stipulate the point of information disclosure;Increase the penalties for information disclosure violations;Strengthen the external supervision and management of related party procurement.Based on the problems existing in the internal control of the purchasing of related parties in T company,this paper studies the risks of internal control of purchasing and related party transactions,and finally puts forward its own suggestions.This case analysis for the existence of similar related party procurement enterprises,has a certain reference significance.