A Case Study On Internal Control Of The Party Transaction Of D Company

In recent years,China’s capital market has developed rapidly,the organizational forms of enterprises have become more and more diverse and complex,and the associated transactions of listed companies have become increasingly frequent.Related Party transactions not only reduce transaction costs for the company,but also become a tool for the shareholders to transfer the company’s property.In order to deter the shareholders from using related party transactions to transfer interests,and to ensure that related party transactions comply with the regulations,it is of great significance to study the internal control of related party transactions.This thesis mainly uses the method of literature research and case analysis to study the internal control loopholes of the related party transactions of D Company,and puts forward some suggestions for improvement.In the theoretical research section,the thesis refers to the Information asymmetry theory,internal capital market theory,principal-agent theory and internal control norms and frameworks.In the process of case analysis,first,the basic situation of the case company is introduced,then the transaction data of the related party of the case company is collated,and the process of the related party using the related party transaction to embezzle the company’s huge funds is introduced,it is found that the loopholes in the internal control of the company’s affiliated transactions are mainly focused on the examination and approval path,risk assessment,supervision mechanism and so on.On this basis,the thesis analyzes the causes of the defects,the root of which is the unreasonable ownership structure,weak awareness of risk prevention and control,lack of internal supervision.Finally,in view of the concrete defects of the case company’s Related Party transaction internal control,the paper proposes the corresponding improvement proposal from many aspects,it includes optimizing internal control environment,Standardizing Risk Assessment Measures of related party transactions,strengthening internal control and supervision mechanism of related party transactions.This study substantiates the theoretical research on the internal control of related party transactions.Besides,it provides some reference ideas for the construction of internal control and management of related party transactions in our country.