Research On Financial Fraud Of W Company Basing On GONE Theory

For the past few years, the financial fraud of listed companies emerges continuously, and caused tremendous damage. For investors, they have suffered financial losses and lose their investment confidence. For securities market, there is no fair and the sustainable and healthy development of the national economy is affected. For companies, in the short term they may get some more profit that does not match enterprise’s operating situation. But in the long run, the company must be subject to a variety of regulatory authorities to investigate. In some case, the corporate image may be damaged. Furthermore, the company would be faced with bankruptcy. Although the supervision department have issued a number of policies to prevent financial fraud, the frequency of financial fraud shows these policies are not seem to have played a good role.Based on the situation of the frequent occurrence of financial fraud, the W company was selected as a case study. Using the greed, opportunity, need and exposure factors of GONE theory to analyses the financial fraud and get the corresponding four impacts of factor, then proposing some effective management methods for financial fraud.The first chapter mainly talks about background and significance. Based on the financial fraud of Enron, we know that financial fraud is a worldwide problem. Then the financial fraud research literature at home and abroad was concluded. Finally, propose the research methods in this thesis and summarize the innovation. The second chapter mainly talks about the related concepts of financial fraud. Such as accounting information distortion, report window dressing, earnings management and some common-seen fraud method. Then the GONE theory, iceberg theory and triangle theory was introduced. The third chapter is case review of W company. This chapter mainly introduces the basic situation and the consequences of W company’s financial fraud. The fourth chapter is case study of W company based on GONE theory. On the basis of financial data of W company, combining the four impacts of factor of GONE theory, get a concrete analysis of the financial fraud of W company. The fifth and sixth chapter is prevention and countermeasures of financial fraud and future work. Based on the conclusion of the analysis of financial fraud of W company, four solutions was proposed to prevent the financial fraud. Then, the future work was discussed, and the GONE theory may help to prevent the financial fraud and get better results.