Advances in International Finance

With the continuous expansion of the Chinese market and the vigorous development of the economy, competition among enterprises is becoming increasingly fierce. Among them, related party transactions have become the preferred choice for many companies for financial fraud due to their hidden, complex, and constantly emerging characteristics. Therefore, the audit risks in dealing with related parties and related party transactions continue to increase. This article first defines relevant concepts and conducts a literature review. Secondly, it explains the reasons for audit failures. Finally, based on the reasons for audit failures, it provides insights for all audits. Through this research analysis, we can further understand the content and characteristics of financial fraud auditing in related party transactions, improve audit standardization and efficiency, and promote the healthy operation of the capital market.

Related party transactions; Financial fraud; Audit failed