Study On The Audit Risk Of Hidden Related Party Transactions Of E Company

Due to the rapid economic development,the structure and scale of the company and the organization are increasingly complex,the cooperation and contact between enterprises are deepened,and more and more related parties.This kind of related party transaction provides many conveniences for enterprises,such as reducing costs and adjusting profits and losses,so it is very popular with enterprises,but the disadvantages are also obvious.Enterprises can cheat in this way,which is more difficult for investors to protect their own interests.The difficulty of related party transaction audit lies in how to determine whether the two parties of the transaction are really related relations.In order to achieve their own goals,enterprises often use various means to dislink related party transactions,resulting in no related party transactions from a legal point of view.This hidden way is hidden related party transactions.There are several reasons for this paper to select Chinese pharmaceutical enterprises as the research object: First,the pharmaceutical industry needs a huge amount of funds,and only by continuous research and development of new pharmaceutical products can they occupy a favorable position in the fiercely competitive market.Therefore,in order to raise funds,the fraud motivation of pharmaceutical manufacturing enterprises themselves is much higher than that of other industries.Second,the development of pharmaceutical products has attracted the attention of the country.The relevant regulations and policies are not introduced,and the regional policies may be different,which leads to greater difficulties for pharmaceutical enterprises to carry out financial fraud,which is bound to lead to the adoption of more hidden and complex ways.There are many theoretical studies on "hidden related party transactions",and many scholars have made insightful analysis,but there is still a lack of detailed analysis of the actual cases of "hidden related party transactions",especially the relevant literature of the pharmaceutical manufacturing industry.Therefore,this paper selects company E,a well-known listed pharmaceutical manufacturing company,as the research object.The hidden related party fraud means of this enterprise are very characteristic and the research value is high.Secondly,the audit risk model is used to analyze the audit failure cases of Tianjian Firm,so as to provide reference for the audit process of CPA in the future from the perspective of reducing the audit risk,so as to avoid audit failure.