Research On Internal Control Of Related Party Transactions Of Listed Companies In China

Related party transaction often appears in the economic business of China’s listed companies,which is one of the important means for enterprises to reduce various costs and maximize profits.On the one hand,the transactions between related parties can significantly reduce transaction information cost,material cost and management cost,but on the other hand,the affiliated party transactions in the often appear trading activity is not true,the principle of trading price and trading unfair injustice,contrary to the market principle of making compensation for equal value,make the shareholder rights and interests are infringed,also damage the economic interests of the minority shareholders and creditors.Nowadays,it is very common for the general manager to concurrently serve as the chairman of the board of directors.As a result,the execution,approval and supervision of the company’s business activities are all in the hands of one person,and the abuse of power occurs from time to time,which seriously increases the financial risk of the enterprise.As the rules and means to link and restrict economic and business activities in modern enterprise management,enterprise internal control can reduce the occurrence of non-compliant related party transactions to a certain extent.Effective internal control management process can improve the quality of employees and work efficiency,product and service quality,help enterprises to improve their competitiveness in the increasingly competitive external market environment,avoid unnecessary losses caused by internal economic and business problems.At the same time,strict and prudent internal control management system is an important tool to ensure the true and reliable financial data of enterprises,which determines the good operation of internal funds of enterprises and affects the reasonable investment decisions of external investors.Thus,internal control questions about related party transactions worth Shared concerns of the listed companies and the vast number of investors in our country,how to make the related party transactions this double-edged sword under the constraints of the internal control standard,actively develop its positive position to become the top priority in this paper,in 2016,the sea embellish the photovoltaic internal control failure case,for example,the affiliated party transactions to dahua inexpressible opinions of the auditing reports issued by certified public accountants,citing improper to involving four related party transactions as the foundation,analysis of the internal control defects,the affiliated party transactions from the cognizance of the affiliated party transactions andcorporate governance structure and organizational structure of examination and approval From the five aspects of transaction risk assessment and prevention and the disclosure of internal and external information,this paper analyzes the reasons for the defects of internal control in related party transactions of herun pv,and extracts the improvement measures of helun pv against the defects of internal control in related party transactions,hoping to provide some references or inspirations for other listed companies in China.