Case Analysis Of Xinjiang Chalk Is CO., LTD’ Financial Fraud

In the past twenty years, Chinese capital market start from the scratch. Then, it develops so fast and makes unprecedented progress. Relevant government departments have promulgated a series of laws and regulations to guarantee the market order of openness, fairness and justice. But the situation of financial fraud did not disappear with the continuous improvement of the capital market. In our country, the accounting information distorted of listed companies has become more general phenomenon. And they may provide an accounting report that is false or with important facts held back deliberately. The exposure of continual listed companies’financial fraud cases not only leads to the investors’ wrong judgment and decision-making, but also impairs the distribution of market resources and imperils the healthy development of socio-economy. Therefore, the study of financial fraud has very important practical significance. This paper is based on XINJIANG CHALKIS CO., LTD as the research object. I hope that our government can strengthen supervision of listed enterprises and promote the healthy and orderly development of them.This paper is divided into five parts. The first part is the introduction.In this part, it introduces the background and significance of this article. It also introduces the research methodology and research content. The second part is an overview of the theoretical basis of financial fraud. In addition, it also introduces the definition of financial fraud and some similar concepts. The third part describes the process of Chalkis’s financial fraud case, and makes a detailed analysis of Chalkis’s fraud method, harm and motive. The fourth part is based on the analysis of the third part. In this part, some countermeasures and suggestions are put forward according to our national situation. For example, our government should strengthen its supervision mechanism and make full use of the supervisory role of the news media to strengthen external supervision. It is also important for government to raise the cost of fraud. What’s more, listed companies should improve its internal controls.The fifth part is the conclusion. It summarizes the full text and encourage the public to participate in the supervision of securities market. So we can create a good investment environment for the majority of investors.