Research On Audit Risk And Prevention Of Related Party Transactions

Related parrty transactions have become more comptex withe development of the capital market,which also makes auditors face higher risks when providing audit services,It is undenrable that the existerce of related parties has brought convenience to enterprises and also improved efficiency.However,due to the particularity of related parties such as the inability to fully disclose the relationship between related parties in the annual report,a series of financial fraud events have occurred.From the perspective of accounting management,the characteristics of related parties lead to management difficulties.According to the punishment report,the basic reason for the punishment of listed companies is related parties,and the firm is also implicated.This paper adopts the research method of case combination theory,through consulting the legal docunents such as the Company Law,the Accounting Standards for Business Enterprises and the Auditing Standards,and on the basis of the research of relaed parties by rdlevant scholars at home and abroud,combined with the case of Huaze Cobalt Nickel,thrpugh the financial and non-financial data of the company,the audit risk of related party transactions and the hidden relationship of related parties are studies,the audit problems in the case are analyzed,and the preventive strategies such as how the accounting firm ideatifics and assesses the audit risk of related party transactions and how the audited entity manages the related party transactions are proposed,finally arming at the typical problems in the case.The reasons for the formation of audit risks of related party transactions and preventive measures are proposed.One of the reasons why the company can violate the related party transaction criteria is that the binding force of the relevant national laws and regulations is not perfect,and the company gains more profics than the punishment.At this level,auditors can only improve their ability to deal with the audit risks of related party transactions.Therefore,this paper can provide relevant theurrtical basis for the audit of related party transactions in China,which is conducive to the work of auditors and the stability of the capital market.