In recent years,the fraud of listed companies has tended to be fraudulent in related party transactions.It is worth noting that related party transactions have become more and more complicated and concealed,and the irregular disclosure of related parties of listed companies has been repeatedly prohibited.On the one hand,the related transaction behavior of listed companies can save costs for the company’s transactions,avoid unnecessary market risks,and improve the company’s operational capabilities;on the other hand,it has become a common method for listed companies’ related party transactions to fraudulently manipulate profits.First,it has seriously harmed the interests of small and medium shareholders of listed companies,as well as their creditors and other stakeholders.In view of this,this article will analyze the typical cases of related party transaction fraud,and plan to find out the lack of internal control of listed companies,the insufficiency of external supervision mechanism and the improprieties of audit institutions.It is planned to analyze the cases for fraud in related party transactions of listed companies.Prevention and governance provide reference and reference.First,based on the theoretical basis of research on related party transactions and related party transaction fraud,the CRIME theory is used to analyze fraud perpetrator(C),fraud method(R),fraud motive(I),fraud supervision mechanism(M),and consequence analysis.(E)These five aspects analyze the fraud in related party transactions of Hunan Qianshan Pharmaceutical Machinery Co.,Ltd.;secondly,the study found that Hunan Qianshan Pharmaceutical Machinery Co.,Ltd.has committed fraud in related party transactions.The first is due to the implementation of the company in recent years.The new business model requires a lot of financial and manpower,and the financial chain is broken,which leads to the delisting crisis.Second,the company’s internal control has a defect in the decision-making supervision mechanism.Chairman Liu Xianghua is above the internal control and organizes and decides this time.Fraud in related-party transactions;third,the CSRC’s penalties are weak,and the audit department’s effectiveness in inspection and supervision is lacking,and there is no timely and compliant disclosure of information,and it is impossible to verify the true situation of the company.In view of this,this article recommends: improve the internal governance mechanism of related party transactions,standardize the disclosure of related party transaction information,and strengthen the external audit supervision and punishment of related party transactions.Through systematic combing and analysis,innovations have been made in two aspects:First,the innovative choice is based on the CRIME theory to study related party transactions.The application of this theory to related party transactions is novel and enables specific understanding of the overall related party fraud from multiple angles.Enriched the existing research results;Second,this paper studies the related party transaction fraud of Hunan Qianshan Pharmaceutical Machinery Co.,Ltd.through case analysis method,analyzes its motivation,tactics,regulatory mechanism,etc.at the same time,this case brings beneficial enlightenment for the internal and external regulatory mechanism. |