A Case Study On Accounting Fraud Of KH Company

Nowadays, with the development of world capital market accelerating and the degree of economic integration deepened, the listing of enterprises has become important if the enterprises want to quickly gather capital and to become the leader in the fierce market competition. However, there are merits and demerits of the enterprises' listing and capital markets. The merits lie in that the enterprises can not only gather capital after listing and develop rapidly, but also add fresh vitality into the securities market and ensure the smooth operation of the capital market. The demerits are that there will be many financial fraud problems if the listed companies are not under enough supervision. These problems have not only brought great negative effects on the normal operation of China's macroeconomic, but also damaged the legitimate rights and interests of our people. Even more, these fraud acts generate deviation in the process of the Inspection and Management Institutions of the people's government's administrative supervising. In addition to the people and the supervision and management departments, the victims also include some of the community investment organizations and individual investors. These false data also confused their audio-visual and damaged their economic interests in some degree, which makes the original orderly, open, fair and just the securities market order seriously disrupted by the fake fraud institutions.Regulators have tried to use reasonable and effective means to curb such fraud.However, due to the interference of many factors, there is no substantial progress in the supervision of the financial fraud of listed companies.KH's financial fraud problem indicates that in order to prevent financial fraud,the enterprise itself, external supervision and other aspects should be considered at the same time. Various forces and measures should be taken if we want to effectively reduce the occurrences of financial fraud of listed companies, and help the listed companies to guarantee the authenticity of the report after the listing and to fulfill the responsibility of listed companies which is to protect the interests of small and medium investors and to give full play to the potential of social resources under market orientation. Based on the above analysis, it is easy to find that the analysis of the reasons, means and countermeasure for financial fraud will be beneficial to maintain the smooth operation of the capital market, to protect the interests of investors, and to promote the harmonious development of our society.The first section is the introduction which mainly focuses on the elaboration of the research background, significance of the study, research content, research methods used in this paper, and related references. Besides, this section also introduces the research ideas of this paper as well as the thinking line frame.The second section includes some examples of facts. The listed company KH Company' s financial fraud case is mainly reviewed, and the details of the incident elaborated. The scope is: inflated assets, inflated accounts receivable, the use of related party transactions inflated profits, etc.The third section is case analysis. First of all, the related theoretical basis of analyzing the reasons for the financial fraud of KH Company is given, and then the causes and methods of financial fraud of KH Company are analyzed.The fourth section is countermeasure and suggestion. In view of the problems and causes of KH Company, we put forward the countermeasures to properly solve the financial fraud problem. Regulatory strategies are given from several aspects:further deepening of the level of market supervision and management, clear information disclosure system, increase of the punishments for the financial data fraud.We suggest that the core steps of the listed company's standard system should be constantly amended and supplemented so that the interests of many investment units and investors will be maintained to the greatest extent.