Case Study On Audit Failure Of Huaze Cobalt-nickel Related Party Funds Occupation By Ruihuaaccounting Film

At present,with the rapid development of China's economy and society,the financial market has become more complex,and the behavior of enterprises using funds through related parties has become increasingly diversified and hidden.The long-term and large amount of related party's occupation of the enterprise's capital seriously damages the interests of the company and stakeholders,and affects the healthy development of the capital market.Therefore,it is more and more important to strengthen the audit of related party's fund occupation.At present,the audit mechanism of our country is not mature,the audit is difficult and risky,and the cases of audit failure are frequent.Therefore,it is of great practical significance to strengthen the research on the behavior of accounting firm's audit related party's fund occupation.In this paper,the case study method is applied to analyze the reason of audit failure of Ruihua accounting firm in the audit of Huaze cobalt nickel related party's fund occupation,so as to get the inspiration of strengthening the audit of related party's fund occupation.There are defects in the audit work of Ruihua certified public accountants,such as the failure to effectively evaluate the auditee and its environment,the failure to identify the hidden related parties,the failure of the certified public accountants to maintain professional prudence on the abnormity of letters and notes receivable.It is found that the audit quality control degree of Ruihua certified public accountants is low,and the design and implementation of audit procedures by certified public accountants are not in place,so it is concluded that the details should be completed Improve the audit quality control system of related party's fund occupation,strictly review the audit working papers,standardize the audit charging system,and propose to standardize the audit procedures of related party's fund occupation,improve the comprehensive quality level of certified public accountants,and improve the supervision and management mechanism for related party's fund occupation behavior.