Research On The Discrimination And Prevention Of Financial Fraud In Related Transactions Of Listed

With the stride of China's market economy,the relationship between the companies has got rid of the single hostile relationship model,adhering to the concept of teamwork and win-win.The development of the team is the necessary way to promote the survival and strength of the enterprise.The establishment of the group company is an important embodiment of the development of the group.Business transactions between companies within the group cause connected transactions.When dealing with related party transactions,the parent company can easily put pressure on the business data or even major decisions of the subsidiaries or branches,and the transaction may constitute a violation due to the mandatory intervention of the parent company.If the company actually violates the internal related party transactions in violation of the regulations,the group parent company will try to cover up the facts of the illegal transaction,so as to achieve the purpose of improving performance and false reporting of net profit.In order to prevent the interests of shareholders from being infringed and to prevent the destruction of the market economy,all relevant institutions should prevent frequent financial fraud,so the legal compliance of transaction behavior has become the main verification object of the regulatory agencies and audit institutions.This paper analyzes the status quo,common methods and routine motivations of financial fraud in listed companies in China,and puts forward constructive opinions on the identification and preventive measures of financial fraud by means of conventional means and motivation;and takes the financial fraud incident of Group A as the actual case.Conduct an in-depth analysis to support the correctness of the above analysis and the admissibility of countermeasure recommendations.Based on the case analysis of Group A's financial fraud,based on the strict definition of the concept of A-group related transactions,the paper analyzes and summarizes the motivations and means of Group A's financial fraud based on the theory of fraud.Through analysis,it is found that Group A mainly deliberately conceals related parties.Use related transactions to increase income,use related transactions to conceal costs and other means of financial fraud.The case of Group A finally proved the correctness of the analysis of the causes and means of financial fraud in the previous article.Through this research,we hope to provide some help for the screening and prevention of financial fraud in related transactions of listed companies in China.