Research On Internal Control Of C Company's Related Party Transactions

Related party transactions are complex economic phenomenon that transforms market transactions into intra-company transactions,which can reduce transaction costs,enhance synergies,increase corporate value.However,due to its concealment,humanity and flexibility,related party transactions are highly vulnerable to the interests of minority shareholders and creditors and have a bad impact on the company.If we can effectively avoid its risks,it will greatly promote the horizontal and vertical development of the company.Company C sales of photovoltaic components mainly,and the only listed company among its controlling shareholder AK Group.It has been issued a letter of inquiry on the issue of related party transactions several times.In the past four years,the amount of related party transactions has exceeded 3 billion.This paper explores the problems in the internal control of related party transactions of company C,including the corporate governance structure,the imperfect risk assessment mechanism,the poor effectiveness of control activities,the quality of information disclosure in the form,the lack of internal supervision,etc.The actual situation of internal control of the transaction,from improving the control environment and risk management procedures,effective control activities,strengthening information communication and external disclosure,and strengthening the internal and external supervision level to propose practical and feasible improvement suggestions.Based on the framework of the five elements of internal control,this paper mines and analyzes the problems existing in the internal control of related party transactions,finds out the problems existing in the internal control of related party transactions of C company,and proposes effective improvement programs to improve the corporate governance environment and implement A number of control activities,enhance internal supervision,to solve existing problems,in order to effectively avoid major risks that may arise in related party transactions,and improve the internal control of related party transactions of Company C.The research content of this paper has certain reference significance for listed companies with similar problems,and protect the rights and interests of small and medium investors.