Research On Audit Risk Based On Related Party Transactions

Related party transaction is a special transaction form,which based on the judgment of related party relationships,happened between the external market business and enterprise internal transfer.Such transactions transfer resources,services or obligations between related enterprises.Related party transactions have been turns into tools for profit manipulation,earnings management and asset occupancy by some enterprises.In recent years,the ways of the transactions are more diversified,the transactions are more concealed,and the concerning accounts are more complacent,this have increased the audit risk and make it harder to prevent to some extent.This thesis attempts to analyze the impact of related party transactions on audit risk and prevention methods about it in the form of case study.After collating domestic and foreign literature about related party transactions,starting form theoretical basis and relevant concepts of audit risk of related party transactions,discussing unfair related party transactions of different motives of enterprises,analyzed the influence of related party transactions on the audit risk.As for the case,this thesis chooses the Audit of H's related party transactions by R accounting firm.Analyzing purpose of the related party transactions,finds the poor industry and operating conditions,ineffective governance structure and other reasons together cause the assets occupation transaction,and finds that the purpose of related party transactions conducted by the company is not to manipulate profits as usual,but to occupy assets.For audit risks of related party transactions,mainly analyzing material misstatement risk of control environment,information disclosure,asset occupancy,and detective risk of related party identification,audit process and professional ethics.For R accounting firm,when identity audit risk,auditor of the firm didn't know internal control or assess fraud risk well,when manipulate risk,auditor of the firm didn't perform audit procedures well.Finally,bringing forward countermeasures to prevent the audit risk from the three aspects,including auditing process,accounting firm,and external regulation.