| The capital market has developed rapidly and expanded continuously in recent years,faced with fierce market competition,many listed companies must constantly expand the scale of their companies and expand their business,this inevitably led to a surge in related parties and related party transactions.Some enterprises began to use improper related party transactions for financial fraud,these not only caused losses to shareholders and other stakeholders,but also reduced the credibility of accounting firms and disrupted the sound development of the capital market.Accounting firms and certified public accountants are inevitably to blame.their problems with the audit work are also becoming more apparent.Therefore,the audit of related-party transactions has gradually been widely concerned by the public,and how to improve the audit quality of related-party transactions has also become the research goal of experts and scholars.In this paper,LX accounting firm and ST Yang Fan which were punished by China securities regulatory commission in 2018 were selected as the objects,this paper mainly use the method of literature review and case analysis,combining with the punishment announcement and the company information that has been revealed by ST Yang Fan,study the audit case of related party transactions of ST Yang Fan by LX accounting firm,analyze the problems always existed in the audit process of LX accounting firm from the perspective of accounting firm,and analyze the reasons for the failure to make further improvement suggestions.This paper firstly introduces the research background and significance,and summarizes the relevant literature at home and abroad.Secondly,this paper introduces the basic situation of LX accounting firm and ST Yang Fan,and briefly combs the case process,and introduces some specific behaviors of LX accounting firm in the audit process.Again,based on the modern risk-oriented audit theory,principal-agent theory and the fraud triangle theory as a foundation,analyzed the problems existing in the audit process of LX accounting firm,the causes of audit failure and summed up as four aspects: the lack of professional doubt due to auditors,the lack of serious and rigorous in audit work,the inadequate implementation of audit procedures and the imperfection of the firm’s management system.Finally,it is concluded that the focus of the audit of affiliated transactions is to accurately identify affiliated parties,and the key to the success of the audit of affiliated transactions is the professional ability of auditors.At the same time,according to the above four reasons,suggestions are put forward from four aspects: improving CPA’s identification ability of related parties,enhancing auditors’ professional quality,implementing audit procedures effectively,and establishing a sound management system for accounting firms.Through the study of the audit case of related party transactions,this paper hopes to provide ideas for the accounting firm to reduce the audit risk and improve the audit quality in the future work,help to enrich relevant theories,reduce the occurrence of fraud in related party transactions of enterprises,and provide higher protection for the rights and interests of investors. |
