Managers of financially-hit companies have high incentives to use accruals and manipulate profits due to reduced profitability and consequently lower stock prices and rewards, and such actions lead to a reduction in the quality of profit and a reduction in the quality of financial information, Therefore, in the context of the financial crisis, investors' confidence and trust in the financial reporting system are weakened and the quality of accounting is of great importance. The main purpose of the present research is to investigate the effect of fraudulent financial reporting on financial crisis, with emphasis on transactions with affiliated entities. In this research, the financial information of 97 companies accepted in Tehran Stock Exchange during the period from 2010 to 2017 was analyzed and analyzed using logistic regression test in EVIEWS statistical software. The results of the study showed that the impact of fraudulent financial reporting on the financial crisis was also not statistically confirmed by the impact of fraudulent financial reporting on the financial crisis, with emphasis on transactions with affiliated entities.