A Research For Jade Bird Huaguang Related Transactions Fraud Case

Affiliated transaction is a common form of transaction in the operation of modern enterprises.On the one hand,related party transactions can reduce transaction costs and improve production efficiency;on the other hand,related party transactions are also prone to unfair trade,and become a means of fraud.Listed companies for listing and financing,the issuance of new shares,shares,to avoid delisting,meet regulatory requirements,with the intentional use of related transactions to manipulate profits,whitewash statements,and realize the interests of shareholders.On the one hand,it damages the interests of the majority of small investors,on the other hand is not conducive to the healthy development of the capital market.The Jade Bird Huaguang Limited by Share Ltd is an example,how to research and analysis of listed companies related party transaction fraud.In this paper,at first,the literature review of the related party transaction fraud at home and abroad is presented;Then it introduces the theoretical analysis of related transaction fraud,including the motive,the means and the form of the related party transactions,and the theoretical framework of the GONE theory as the analysis of the related party transactions.Research and analysis of the Jade Bird Huaguang by concealing the actual controller,concealing related transactions in the reorganization of assets,the use of related party transactions fictitious income;Further,the Jade Bird Huaguang company in order to avoid the risk of delisting,inflated profits,whitewash statements,the existence of the stock market for more than ten years,basically just the top control taking the interests as the "shell" in the capital market.Further analysis has been able to carry out the Jade Bird Huaguang transaction fraud,because the capital market pricing mechanism of related party transactions is unreasonable,securities regulation is not in place,the CPA audit is not duty.At last,this paper puts forward suggestions on how to prevent the related party transactions of listed companies from five aspects according to the problems in the case.including: the establishment of an independent third party assessment agencies to assess the valuation of related transactions of listed companies;The establishment of the senior management of the archives management system,between the exhibition companies and executives the relationship,providing a clue for Related party fraud;Strengthen i the third parties outside the enterprise,such as the securities and Futures Commission,information sharing between firms,helding a regular meeting to remind each other to pay attention to the major risk areas;expanding the number of high-end talent in the field of accounting personnel,to strengthen the practice of certified public accountants education,improving the quality of professional ethics and professional competence;The nature and extent of the penalty for the restructuring of the related party transactions...