An Analysis Of The Fraudities Of Overseas Related Party Transactions Of Listed Companies And Countermeasures

With the continuous advancement of the 'One Belt and One Road',listed companies continue to expand overseas business,especially the increase in cross-border business in the chemical industry,construction,and electronic communications industries.The difficulty of supervision and auditing risks have also increased.The issues studied in this paper are as follow:the current situation of China's cross-border connected transactions and how listed companies use foreign related party transactions to conduct financial frauds,and based on this put forward corresponding regulatory recommendations and auditing countermeasures.Over the years,domestic and foreign experts have studied the related theories of enterprise earnings management,financial fraud,and related party transactions fraud,and the system is relatively mature.However,there are few researches on the cross-border related transaction status in China and the cross-border related transaction fraud and the identification of overseas affiliates.From the point of view of research methods,the existing cross-border connected transactions mostly use empirical research or normative research methods.The existing literature tends to theoretically expound the risk points that should be paid attention to in cross-border related party transactions,and lack the pertinence and practical guidance of case companies.This article uses related theory of related party transactions,such as internalization theory,location advantage theory,earnings management theory and externality theory.Through the above theoretical analysis,the reasons for the emergence and growth of cross-border connected transactions are summarized.Finally,cross-border related transaction supervision and auditing countermeasures are proposed.The study found that:(1)China's listed companies' cross-border connected transactions and non-compliance cases are mainly concentrated in the manufacturing industry.The main types of transactions are guarantee mortgages,purchases and sales,and labor services.It is worth noting that the undisclosed circumstances of related parties and related transactions are not disclosed.(2)Due to the sensitivity of industry policies and environmental impacts at home and abroad,PV companies are more likely to implement international business strategies to extend the upstream and downstream of the industrial chain.However,the complex overseas market environment may cause the financial problems brought about by the implementation of the strategy.For the purpose of the listed company,the company's intention to create a license fraud,etc.(3)Under the dual failures of corporate governance and external auditing,companies may use complex overseas related party transactions to conduct financial frauds.Financial fraud affects corporate value and also affects the corresponding bond market and securities market.Based on the lack of theoretical research on cross-border connected transactions,this paper combines statistical analysis of macro data to quantitatively study the current situation of China's cross-border connected transactions.At the same time,combined with modern risk-oriented auditing,it provides countermeasures and suggestions for CPAs to identify overseas related party transactions,and proposes policy recommendations for improving supervision of cross-border connected transactions.