Case Study Of SC Company’s Financial Fraud

During thirty years, Chinese capital market develops rapidly, but with the rapid development of the market economy, the financial fraud phenomenon has becomes high incidence trend. Listing Corporation’s financial fraud is an organized and planned activities of the accounting entity, the consequences of financial fraud is extremely serious. Cracking down the existing financial fraud behavior is the inevitable requirement to protect the market economy of our country into a more healthy and harmonious development.From Eighteen Chinese Communist Party, the central party committee will change economic development from the pursuit of growth to the pursuit of quality, in this point, the financial fraud management is particularly important.In this paper, combined with SC company’s financial fraud case, firstly the studies starts from the background of topic selection and the significance of researching, exploring the ideas and methods of research; secondly doing the further describe for the financial fraud case of SC company.In this part, it is mainly elaborates the company of SC, and describe its main business and product and review the entire case; we found that SC company mainly counterfeiting technique is to use material costs, related party transactions, government subsidies inflated profits.then doing some analysis to this case, according to the basis of searching a large number of domestic and foreign literature, related theory of financial fraud have been introduced, and then combining with relevant theory to analyze the internal and external reasons of SC company’s fraud. Finally, the suggestions and strategies are introduced to manage the listed company financial fraud. As long as adopting the correct precautionary measures and strategies, it will improve the security of stock market, to creating a favorable investment climate, to improve the confidence of investors and make the protection for our stock market.