Study On Detecting Accounting Fraud Of Listed Companies Based On Affiliated Transactions

To analyze the influence of affiliated transactions of listed companies on detecting accounting fraud based on normative research and empirical research, roundly and systemically, a hot topic in the academic and practical world—detecting accounting fraud from affiliated transactions of listed companies is studied in this paper, putting forward policy suggestions considering the truth of China and successful overseas experience.Firstly, we on one hand,we summarized affiliated parties and affiliated transactions in domestic and international accounting standards and related laws, then defined the character of affiliated parties and analyzed the reason of affiliated transactions of listed companies. On the other hand, we defined accounting fraud both here and abroad, then analyzed the motivation and the method of accounting fraud and studied the way of detecting accounting fraud.Secondly, based on the definition of affiliated transactions, we described the current situation of affiliated transactions regulation in domestic, analyzed the character, types, means and hazard of affiliated transactions of Chinese listed companies and put forward the insufficiency of affiliated transactions regulation of Chinese listed companies.Thirdly, to provide foundation for empirical research, based on above discussion, we analyzed the way affiliated transactions affect accounting fraud in theory. We can use some variables related to affiliated transactions to detect accounting fraud.Fourthly, we put forward research hypothesis by combining theoretical result with national situation and conducted empirical study on accounting fraud. And we constructed the model of detecting accounting fraud of listed companies according to Chinese marketing conditions and concluded that these indexes of liquidity, operation ability, cash flow ability and affiliated transactions have significant effects on detecting accounting fraud of listed companies.At last, with the above conclusions, we give the following policy recommendations: constructing multilevel public regulation system, improving internal control, improving corporate governance structure; constructing information display mechanism, improving legal system building and laws to protect the interests of small shareholders and so on.