A Study On The Audit Risk Of Related Party Fund Occupancy

At present,the capital market reform is making solid progress and stepping into a stage of high-quality development.Therefore,it is urgent to study and solve the illegal behavior of related party’s capital occupation in the capital market.The occupation of funds by related parties will not only worsen the financial situation of listed companies,increase the unstable factors of the capital market,but also affect the quality of financial reports and discourage the confidence of the majority of small and medium investors.It is of great significance to strengthen audit supervision and give full play to the role of external audit governance to discover the capital occupation of related parties and build a benign market ecology.Therefore,this paper studies the risk of capital occupation audit,hoping to further improve the risk awareness of auditors,fully assess the risk of capital occupation,implement targeted audit procedures,and control such risks at an acceptable low level.This paper is based on literature research and case analysis.On the basis of clarifying the core concepts and sorting out the relevant theories,the paper systematically introduces the situation of the fund occupation of the related parties of Shede Spirits and the auditing of Shine Wing.Then it focuses on the performance and harm of the fund occupation risk of the related parties of Shede Spirits,as well as the problems existing in the identification and coping with the corresponding risks of Shine Wing: insufficient assessment of the audit risk of the fund occupation,inadequate connection between the risk assessment and further audit procedures,further audit procedures failed to effectively deal with the audit risk.Then,the paper analyzes in detail the causes of problems in identifying and coping with the risk of funds occupied by the related parties of Shede Spirits: at the level of accounting firms,Shine Wing lack of independence and quality control;At the audit team level,Shine Wing did not pay enough attention to the environment of Shede Spirits,the implementation of internal control audit procedures was not in place,the analytical procedures were not effectively used,and it was difficult to identify the hidden related-party relationship and transactions.Finally,according to the existing problems and their causes,countermeasures are proposed: to understand the customer’s internal and external environment in detail,properly evaluate the effectiveness of internal control,and effectively use analytical procedures;to maintain professional doubts about the signs of capital occupation;to fully consider whether there is an undiscovered audit risk;to reasonably plan further audit procedures according to the audit risk assessment situation.The research conclusion of this paper has certain enlightenment significance for accounting firms and their auditors to do a good job in the audit of related transactions,and for the regulators to strengthen the audit supervision of related transactions.