Analysis And Enlightenment Of Financial Fraud In Related Transactions

In today's securities market,related party transactions between enterprises occur more and more frequently.Related party transactions can bring scale effect to enterprises,at the same time,it can save a lot of communication and negotiation costs,and make the transaction cooperation more efficient.However,there are also disadvantages in connected transactions.In the process of connected transactions,there may be unfair transaction prices and irregular transaction methods.What's more,with more and more ways and types of connected transactions,these connected transactions are often hidden in the undisclosed connected relationships,which makes it very difficult for the regulatory authorities to learn about their fraud,and it is more difficult for investors and creditors to identify these financial fraud.Therefore,it is necessary and urgent to analyze the financial fraud of related transactions.Firstly,this paper combs the theory of related party transactions,and analyzes the financial fraud of related party transactions between Shuntian shipbuilding and Mingde heavy industry.This paper focuses on the direct causes of the fraud in the related party transactions of Shuntian ships,and the internal and external institutional causes of the uncontrolled related party transactions.It is found that the serious phenomenon of the chairman of the board of directors,the failure of the internal check and balance mechanism and the examination and approval mechanism of related transactions are the internal institutional roots of the uncontrolled related transactions,while the unclear definition of related transactions,the irregular pricing mechanism of related transactions and the insufficient punishment for violations of laws and regulations are the external institutional roots of the uncontrolled related transactions.This paper holds that in order to prevent the fraud of related transactions,we should take comprehensive measures from corporate governance,institutional environment,external supervision and other dimensions.In order to optimize the corporate governance environment,we should prevent the chairman of the board of directors from speaking,improve the authorization and approval system,strengthen the supervisory function of the board of supervisors,give full play to the supervisory role of independent directors and strengthen the risk assessment of related party transactions,improve the definition scope of related party and related party transactions,improve the pricing criteria of related party transactions and highlight the significant related party transactions We should improve the system of related party transactions through transaction information,and strengthen the external supervision of related party transactions by carrying out targeted audit of related party transactions and increasing the punishment of fraud.