Case Internal Control Of Financial Fraud In Wanfu Biotechnology

In recent years, a large number of domestic listed companies have been exposed financial fraud., such as Enron fraud case, Xerox fraud case, Silver metal irregularities and Oriental electronic fraud. We can find that there is a close link between financial fraud and imperfect internal control. The internal control is like a fire wall against financial fraud, which can improve a company’s anti-risk capability and reduce its possibility of financial fraud. The research on internal control started relatively late in our country and the internal control of many listed companies is not perfect and isn’t well executed. In order to grow, a company must improve its internal control system. How the listed companies design reasonable internal control system and run it effectively, and thus it can identify and prevent risks in the increasingly fierce competition, which have become the focus of attention in theory and practice.The study on internal control of Wanfu Biotechnology is based on internal control theory and mainly adopts the case research method and literature research method. Then the study analysis the internal control defects of Wanfu Biotechnology and the links between financial fraud and internal control. The article comes up with improvement measures of internal control from the perspective of the COSO risk management framework and provide more perfect reference to build internal control system for other listed companies.Firstly the article lists the research setting and meaning of the internal control, research contents and methods. The article lists related domestic and overseas literate review. Then the article lists the theoretical overview related to internal control, and the relationship between the internal control and the corporate governance. Then the article analysis the financial fraud of Wanfu Biotechnology, which includs the introduction and background of the corporate, the introduction and selective analysis of its internal control. According to the analysis the article raises the improving strategies and suggestions. At last the article summarize the suggestions and puts forward the conclusions.