Research On Audit Countermeasures Of Implicit Related Party Transaction Fraud

With the continuous development of China's capital market,under the pressure of performance and the motivation to protect the shell,in order to regulate profits and avoid delisting,the profit adjustment methods are used in every way;and the use of related parties for financial fraud is a common method For one,the use of related party relationships by listed companies can reduce transaction costs,reduce negotiation processes,and reduce coordination costs.Therefore,they are widely used in daily business operations.However,there are also many disadvantages in related party transactions.Because of the social particularity of the relationship between related parties,non-fair market transactions will occur between the entities,and listed companies will be emptied of major shareholder benefits and illegally occupy funds.In addition,in order to complete the externally monitored financial indicators,the management of listed companies uses special relationships between related parties to conduct false transactions and achieve the purpose of adjusting statements.This behavior not only damages the normal operation of the company,but also damages small and medium-sized investment The interests of people.It is relatively easy to identify related party relationships formed by direct equity investment relationships,but in recent years,the methods of related party fraud have also become more complicated.Implicit connected transactions are difficult to identify because of theiroff-balance-sheet social relationships.Gradually increase.For example,using the social close relationship between the transaction subjects to conduct false business transactions.On the surface,the transaction is conducted in accordance with a fair market transaction,but the transaction has no commercial substance,and no real goods circulation has occurred,just to achieve income The purpose of adjusting profits has a significant impact on the authenticity of financial statements.At the same time,due to the concealment of its relationship,it is difficult to discover the close relationship between the transaction subjects and identify the implicit relationship.How to effectively identify hidden related parties and obtain sufficient and appropriate audit evidence to properly respond to audit risks poses a greater challenge to auditors.This article mainly adopts the case study method,taking Lixin Certified Public Accountants' failed audit of *ST Sinopharm as an example.Firstly,the research results of domestic and foreign scholars are explained;secondly,the implicit related parties,related party transactions,risk-oriented auditing theory,and fraud iceberg theory are explained;focusing on case analysis of *ST Sinopharm's use of hidden related party transaction fraud,it is found that The company's fraud methods are mainly the use of implicit related parties to falsify steel trade,false increase in operating income,etc.,and to analyze the improprieties in the audit conducted by Lixin and the reasons for the failure of the audit;Targeted audit countermeasures and recommendations.Namely: carry out the necessary auditing procedures for the identification of hidden related parties;investigate the commercial substance and authenticity of related party transactions;use a combination of multiple auditing procedures to obtain audit evidence;strengthen the audit of key subjects;optimize audit software;strengthen Internal quality control of the firm.