Paper Title
The Influences of Related Party Transactions on Fraudulent Activities in Malaysia: The Moderating Effects of Audit Quality

Abstract
This study examines the impact of related party transactions on fraudulent activities, with the moderating effect of audit quality. The panel results show that related party transactions proxy by number of transactions and value of transactions have a positively significant relationship with fraudulent activities using data from 646 companies for a total of 3,230 firms-year observations in Bursa Malaysia for five years from 2013 to 2017. Audit quality, on the other hand, was determined to be ineffectual in preventing fraudulent activities. Only through the kind of auditor was audit quality proven to be useful in regulating the relationship with related party transactions on fraudulent activities. Nonetheless, an audit fee revealed that it was ineffective. This result contrasts with Type II Agency Theory, which deals with issues involving majority and minority shareholders. It is a valuable resource for every market participant since it reduces information gaps between managers, investors, regulatory bodies, society, and other stakeholders. Keywords - Related Party Transactions, Fraudulent Activities, Audit Quality, Panel Data