Study On Financial Fraud Based On Triangel Theory Of Fraud

Financial fraud is a centuries-old problem which has been thorny for all parties. Today, the listed company's financial fraud problem has become a global issue. The performance of the harm are as follows:sending wrong message, misleading economic behavior, disrupt the economic order, leading to social credit crisis and so on. The non-stop financial fraud cases occurred all around the world which makes the governance of financial fraud facing rigorous challenges.Fraud behavior is to gain benefits for human and it's the product of specific institutional background; It is the choice after weighing the pros and cons of relevant parties; It aims to seek direct or indirect personal interests by conscious violation of established rules for the public. This deceptive means cause serious harmness. Fraud triangle theory holds that the incidence of financial fraud must have three factors at the same time:pressure, opportunity and self-rationalization. Missing any of the above can not constitute financial fraud. Preventing the occurrence of financial fraud must take actions from these three factors to reduce and eliminate the possibilities of fraud. This article makes these three different perspectives as a starting point for case analysis, to sum up the motivation of financial fraud and then draw the corresponding financial fraud prevention measures from reducing pressure, eliminating the opportunity and excuse, which can restrain financial fraud from the source and minimize the costs.In this paper, the author uses the research of criterion as main method, using the method of comparative analysis, case analysis and charts as the auxiliary method to explore financial fraud of listed companies. The text is divided into following five parts:The first chapter, introduction. The main contents include the research background and motivation, research methods and the overall framework. The relevant literature is also reviewed and summarized. Chapter Two, theories about the listed company's financial fraud issue. It mainly discusses the basic concepts of financial fraud and several related theories of fraud motivation.Chapter Three, analysis of the typical financial fraud case. The author selects Satyam and Lubei Chemical two cases and analyses from three perspectives: pressure, opportunity and self-rationalization according to the theory of financial fraud.Chapter Four, the effect on the three elements of fraud by the financial crisis. It illustrates the effect on pressure, opportunity and self-stimulation by the financial crisis.Chapter Five, control measures of the listed company's financial fraud. The author recommends from eliminating fraud motivation, reducing fraud opportunity and eliminating fraud excuse accordingly.This paper is innovative in the following two areas:First, using the latest financial fraud cases at home and abroad for the analysis of three factors of fraud, which is more appropriate and rational.Second, the analysis of measures to prevent financial fraud is not only from the perspective of three factors independently, but also recommend from the perspective of interrelated factors.