A Study On The Fraud Analysis Of Huaze Related Party Transactions

The financial fraud of listed companies has always been a hot topic for scholars.Among them,the issue of related party transactions fraud is especially worth considering.Related-party transactions are two-sided,and listed companies can reduce information asymmetry and improve efficiency through business contacts with related parties.At the same time,some people with ulterior motives use the complexity and hidden nature of connected transactions for illegal motives to manipulate the profits of listed companies or remove the high-quality resources of listed companies.This behavior not only makes users of financial statements unable to obtain effective information,but more importantly it will damage the interests of small and medium-sized investors and creditors.Previous studies on listed company related party transactions fraud are not few,but the use of CRIME theory as a theoretical framework is not much research,and the traditional analysis of related party transactions fraud is mostly from the perspective of earnings management,and for the interests of large shareholders share of the motive The study of related party transactions fraud is slightly scarce.Transfer of corporate assets by major shareholders also undermines the quality of information in the financial statements and infringes the interests of small and medium investors.In this paper,through the combination of theory and case studies,the behaviors of related party transactions fraud of listed companies are studied,which are mainly divided into three levels:means,motivation and causes.Firstly,the related concepts and basic theories of related party and related party transactions were combed,and then the audit risk of the related transaction fraud,motivation and related transaction fraud was discussed.In the case study,the "CRIME" model was used to analyze the internal conditions of Huaze Cobalt and Nickel,the methods for counterfeiting and external supervision,and explore the causes of its related party transactions.Therefore,related governance proposals and auditing countermeasures are proposed in order to suppress the financial fraud of listed companies and regulate the capital market.The conclusions of this paper are mainly divided into two levels:(1)Corporate governance deficiencies are one of the important causes of fraudulent practices.The specific manifestations are:the irrationality of equity institutions and the lack of an effective internal control system.Transferring funds has created convenient conditions.(2)External oversight can not play its due role.The penalties for the main body of fraudulent acts are not enough.The punishment for the third party intermediary institutions that can not be diligent and diligent is also too light.It is the major shareholder related transaction fraud that invades the listed company funds.Important external factors.