A Study On Fraud In Connected Transactions Of Listed Companies

A company is a form of existence for the purpose of making profits,and the main manifestation of profits is its quarterly,semi-annual and annual financial statements.The increase or decrease of the data in the financial statements directly affects the change of the stock price,which in turn affects the company's ability to raise funds and the pace of growth and development.Because of this particularity,financial fraud never stopped.Initially,financial fraud was used only as a means for companies to improve performance and avoid delisting.With the development and change of social and economic environment,in recent years,the fraud means of related party transactions gradually emerge,and then exposed is that the real purpose behind the fraud means is changing.Related-party transactions are widely conducted between listed companies.In the early stage,due to the convenience of parent-subsidiary company transactions,high-tax enterprises were transferred to low-tax enterprises,so as to achieve the purpose of tax evasion and tax avoidance as far as possible.Over time,in some cases revealed,it was found that the actual controller of the company chose to use related transactions to achieve financial fraud in order to transfer funds and empty the company,and related transactions tended to be non-related.As a result,the company's high-quality resources were successively evacuated,and the company was reduced to an empty shell,resulting in great waste of resources.As a third party in financial fraud cases,most institutions fail to maintain their professional skepticism and auditing skills,allowing the bad guys to take advantage.This paper selects target companies for case analysis in view of some changes in related party transaction fraud.In this paper,based on related transactions fraud means the real intention behind as the breakthrough point,through collecting data show the changes of each development stage,the target company ST * HuaZe people lean on internal control,wanton to seek personal gain,malicious encroach on money,despite the interests of others,nature is very bad,caused by the social influence is extremely serious.For this purpose,this paper is divided into seven parts.The main content of the first part is to elaborate the background and significance of this topic.The significance of the topic is explained from the theoretical and practical aspects;In the second part,the related literatures at home and abroad are studied from the perspective of financial fraud.,the purpose of financial fraud,financial fraud prevention summed up many views of domestic and foreign scholars;The third part is the conceptual and theoretical basis,mainly including related parties,related transactions,earnings management theory and fraud GONE theory;The fourth part compares the methods and purposes of the use of related party transactions in each development stage,and collates the case companies in recent five years by referring to relevant data.The fifth part is the introduction of the case company in this paper.Firstly,it discusses the means,motives and consequences of fraud in related transactions,and comprehensively analyzes the whole process of fraud in combination with the punishment measures taken by the CSRC.At the same time,the fraud GONE theory was used to analyze the process one by one,and the fraud motivation was explored from the inside and outside.The sixth part is the prevention Suggestions for fraud proposed in this paper.The sixth part is some Suggestions to prevent financial fraud,mainly based on the fraud GONE theory,on the basis of the fifth part,according to the causes of the corresponding solutions.The seventh part is the conclusion of the thesis,which is divided into internal and external aspects.(1)internally,corporate governance needs to be further strengthened,the internal equity structure is unreasonable,and the major shareholders enjoy the right of speech and are superior to the internal control of the company,which directly results in the company's internal control being useless and provides convenience for the malicious appropriation of funds;(2)externally,the third party institution fails to fulfill its duties and strictly abide by the professional regulations,resulting in the occurrence of mistakes.Meanwhile,the punishment intensity for similar cases is stillsomewhat insufficient,with gains and losses far out of proportion,which cannot form a deterrent force to the implementer.In short,no matter internal or external responsibility,the biggest victims are the majority of small and medium-sized investors,their rights and interests should be protected.