| In recent years,the rapid development of the capital market,the number of listed companies has increased dramatically,while the scale of enterprises is expanding and the shareholding structure is becoming more and more complex,which has led to a sharp increase in the number of related party transactions and a more complex network of related party transactions than before.In the capital market,related party transactions involve huge transaction amounts,and behind the transactions are hidden different transaction intentions of the trading companies,and due to the special nature,complexity and concealment of related party transactions themselves,related party transaction fraud occurs frequently.The Ministry of Finance has been focusing on the audit of related party transactions and made more detailed requirements in the standard.The 2010 version of the Chinese CPA Auditing Standard No.1323-Related Parties proposed for the first time that related party relationships and their transactions should be considered as a special risk area and no longer a general inspection risk area,and the 2019 revised Chinese CPA Auditing Standard No.1323-Related Parties Standard No.1323-Related Parties"application guidance on related party relationships and related party transactions that management and governance have not disclosed to the CPA,suggests that the CPA may expand the scope of the audit,perform additional audit procedures,etc.Although related party transaction fraud is an issue that auditors pay close attention to when firms conduct audits,cases of failed related party transaction audits have been common in recent years,and close to 30% of the multiple firms that were administratively sanctioned from 2008 to 2021 were also due to failed related party transaction audits.Accounting firms as an independent third party to effectively identify and efficiently audit them has become a difficult audit problem.This paper takes the related party transactions of Jinzhengda Ecological Engineering Group Co,Ltd(hereinafter referred to as Jinzhengda)as a vehicle to study how to better implement the audit of related party transactions from an audit perspective,with the aim of reducing the auditor’s audit risk in related party transactions.This paper firstly analyzes the current situation of related party transactions and audits,summarizes the general situation and characteristics of related party transactions,and summarizes the reasons for audit failures and audit problems of related party transactions based on the SEC penalty documents.Secondly,based on the cases of fraudulent related party transactions,the corresponding financial and non-financial indicators are selected for principal component analysis to identify the special risk factors of fraudulent related party transactions,and all the fraudulent cases are ranked comprehensively according to the factor scores,and Jinzhengda Ecological Group Co.Again,the specific case of fraudulent related party transactions of Jinzhengda is analyzed,and the main problems in the implementation of audit strategies of Daxin Accounting Firm,which undertook the audit of Jinzhengda’s annual report,are analyzed.Finally,based on the risk-based audit theory,we propose the optimization of the audit strategy for the audit of related party transactions of listed companies from the business undertaking stage,risk assessment stage and risk response stage based on the Jinzhengda case.The research in this paper aims to improve the quality of audit of related party transactions of listed companies,improve the audit strategy of related party transactions of listed companies,and provide certain ideas for CPA audit. |
