Research On The Impact Of Shared Audit On The Audit Risk Of Related Party Transactions Of Listed Companies

At the critical moment of the decisive victory in building a moderately prosperous society,the prospects for economic development are bright,and the related party transactions of enterprises are also frequent,and many enterprises’ fraudulent transactions of related parties have been exposed,and certified public accountants should be more cautious when auditing enterprises.This paper proposes that the sharing of audit between enterprises and their related parties can enable certified public accountants to better detect abnormal information and fraud,and enable certified public accountants to better prevent the audit risks of related transactions.At the same time,the sharing of audit relationships will also enable enterprises to restrain their own related transactions,thus reducing the fraud of related party transactions.This paper also provides suggestions to regulatory authorities and firms while providing shared audit cases.Based on the theoretical analysis,this paper studies the impact of shared audit on the audit risk of related party transactions,taking FAW Group as an example,and comprehensively analyzes whether the shared audit can play a role in preventing audit risks in the transaction of related parties of enterprises from four paths: professional competence,independence,transaction level of related parties and audit opinions given by the firm.Through case study,this paper finds that shared audit can improve the professional competence of certified public accountants firms,and at the same time,shared audit can effectively inhibit the transaction level of enterprises and their related parties,and be more cautious and accurate in issuing audit opinions.Although shared audit will increase the importance of enterprises in certified public accounting firms,thus reducing their independence,in a comprehensive way,shared audit can reduce the audit risk of related party transactions,thus effectively preventing audit risk.The research conclusion of this paper reveals that the regulatory authorities can use the relationship of shared audit to supervise and manage enterprises,and at the same time should always be alert to the negative impact of independence on certified public accountants.On the one hand,the firms need to improve their professional ability,on the other hand,when selecting audit clients,they can also consider the affiliated enterprises with existing audit clients,and reasonably prevent audit risks through sharing audit.This paper has enriched the research of shared audit in theory,carried out the research of shared audit and updated the transaction audit risk,and analyzed the four possible impact paths of shared audit on audit risk.In fact,it has given the firm a choice to prevent audit risk,that is,to become a common firm of audit customers and their affiliated enterprises,and form a shared audit relationship.At the same time,due to the lack of sufficient information on shared audit,the analysis may not be comprehensive enough,and the ideas provided to the regulatory authorities may be more theoretical.