Research On The Audit Risk Of Huaze Cobalt&nickel Related Party Transactions

With the deepening of China’s economic system reform,the capital market continues to develop and improve.In order to gain a foothold in the market and create their own advantages,listed companies often use methods such as holding mergers to expand their business scale,which can generate scale effects.These practices enable listed companies to conduct more related party transactions,or hidden related party transactions.Although this can improve the efficiency and profitability of enterprises,it also provides enterprises with fraud space,allowing enterprises to use related party transactions for fund transfer and profit manipulation.With the passage of time,fraud in related party transactions has become more complex and hidden,damaging the legitimate rights and interests of investors.At present,the focus of audit work has included related party transactions,as related party transaction fraud brings high risks to the audit work.Although there are currently some regulatory standards that restrict related parties and related party transactions in China,these regulatory standards do not provide detailed provisions for practical operations,but only describe them from a macro perspective.Therefore,they can only be used as a reference in audit practice,with limited scope.In terms of the current audit situation,there are still many problems in the audit of related party transactions in China,and audit failure cases occur frequently,causing social concern.In the face of such a severe situation of related party transaction audit,it is necessary to study the risk of related party transaction audit.Starting from the Huaze Cobalt Nickel Incident,this article takes the audit of related party transactions as the research object,using case analysis,literature research,and normative research methods,and referring to risk oriented audit theory,analyzes the possible audit risks of related party transactions,and finds out that the corresponding audit risk factors of related party transactions are due to poor operating conditions that trigger operational risks,and that related party transactions have inherent risk attributes,And defects in the internal control system of the enterprise;At the same time,certified public accountants have not strictly implemented audit procedures,lack of skepticism,and neglect of working papers.These improper practices have led to the emergence of audit risks.Therefore,when auditing related party transactions,it is necessary to fully consider the actual situation of the enterprise,standardize risk assessment procedures,comprehensively evaluate and analyze the financial data of the enterprise,and strengthen the audit of the pricing fairness of related party transactions to ensure the effective improvement of audit quality,correctly evaluate the effectiveness of internal control of the enterprise,optimize audit methods,and expand the scope of further audit procedures,Effectively implement analysis procedures and overall analysis and review,hoping to assist certified public accountants in the review process of related party transactions,enhance risk identification awareness,and strengthen risk management.