Research On Audit Risk Of Capital Occupation By Affiliated Parties Of Listed Companies Based On PDCA Cycle

In recent years,the problem of capital occupation by affiliated parties of controlling shareholders of listed companies has been frequent,which not only hinders the company’s own operation and development,but also seriously damages the legitimate rights and interests of small and medium shareholders,which in turn makes the overall credit level of the society decline and disrupts the normal order of the financial market.At present,China’s economic development is in a critical period of transformation of old and new dynamics,and the economic operation is facing many risks and challenges,and the downward pressure is increasing.With the increasingly complex external environment,the financing environment has undergone tremendous changes,and the majority of investors have gradually lost confidence,so some shareholders of listed companies are facing a large-scale capital shortage,resulting in the high risk of capital occupation by affiliated parties of controlling shareholders of listed companies.Therefore,it is crucial to prevent the capital occupation by affiliated parties of controlling shareholders of listed companies in order to maintain a healthy and stable operating environment of the market economy.The purpose of this paper is to introduce PDCA total quality management system to analyze the audit risk factors of the affiliated party’s capital occupation by discussing the audit of the affiliated party’s capital occupation of listed companies,and put forward corresponding preventive measures,so as to effectively identify,evaluate and deal with the audit risk of the affiliated party’s capital occupation,and thus provide new audit methods for accounting firms and auditors in audit practiceThis paper mainly adopts the case analysis method,based on the case of Furen Pharmaceutical,to study the audit risk of affiliated party’s capital occupation.By reviewing the illegal facts of non-operating funds occupied by affiliated parties of Furen Pharmaceutical and the audit performed by Ruihua Firm,this paper summarizes the motivation and influence of affiliated parties’ funds occupied by listed companies.This paper,based on the PDCA cycle,this paper analyzes the audit risk factors of affiliated parties’ funds occupation on four aspects: the stage of planning audit,the stage of executing audit procedures,the stage of reviewing audit quality and the stage of handling audit process.In response to the identified risk points,the paper proposed risk control measures such as paying sufficient attention to the identification of the risk of material misstatement of capital appropriation,designing effective audit procedures for related party capital appropriation,implementing the verification of drafts and reports,and establishing a proper practice attitude,and finally concluded that applying the PDCA cycle theory to the audit of affiliated party capital occupation of listed companies is feasible and can effectively reduce audit risks.Although this paper is based on the modern risk-oriented audit model,it does not fully follow its ideas of risk identification,risk assessment and risk response to conduct the analysis.Instead,it integrates PDCA cycle to identify and assess the audit risk factors,and realizes the organic combination of modern risk-oriented theory and total quality management theory,which provides another idea and path for controlling the audit risk of affiliated parties’ capital occupation of listed companies.At the same time,the research of this paper also explores the application scope of PDCA cycle theory,and makes it more microcosmic in the specific audit practice,which provides practical enlightenment for the audit practice of affiliated parties’ capital occupation of listed companies.