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

Entering the era of market-oriented economy,the development of listed companies in China has made much progress,but there are still some problems that need to be improved and standardized,especially in the improvement of internal control of affiliated transactions of listed companies there is still a lot of room for progress.DIB internal control data in 2020 shows that:listed companies disclose significant defects in internal control transaction activities ranked first is still related party transaction;From the point of view of the major defects of internal control leading to negative opinions,the illegal affiliated capital flow and occupation,and the illegal financing guarantee control activities for the affiliated party become the main problems.In 2017,China Securities Regulatory Commission(CSRC)and State-owned Assets Supervision and Administration Commission(SASAC)put forward normative requirements for the Notice on Standardizing The Capital Exchange between Listed Companies and Related Parties and Several Issues concerning listed Companies’External guarantee.However,related party transactions of listed companies still frequently encountered problems and were not implemented properly.It is urgent to solve the problem of how to regulate and supervise the internal control of related transactions of listed companies.This paper first to the related transactions of listed companies in our country internal control overall status analysis of general description,then reference for related party transactions internal control problems of instrument*ST Hua Yi(*ST华仪)China as a case study,based on the company exists the problem of improper associated transactions,studies deeply and the five elements of internal control.After analyzing the problems of typical representative cases,suggestions are put forward to put forward the enlightening suggestions of internal control of affiliated transactions of listed companies in China.This paper enrichis research of related,from the perspective of internal control of listed companies related to the transaction of a comprehensive mining;This paper expands the internal control theory research.Based on the theoretical research of former scholars,this paper puts more emphasis on the operation of the actual business,analyzes the crux of the related transaction problems of the case company with the five elements of internal control,and puts forward corresponding suggestions for improvement.Through the research of this paper,it can provide maneuverability for listed companies in China to formulate relevant legal norms and institutional constraints for internal control of affiliated transactions.