KZ Company Financial Fraud Case Studies

Nowdays the Stock market has become one of the main channel to the public finance due to the continuous reform and gradual development of domestic capital market,it' s scale expands unceasingly,and many enterprises choose to make their company to be listed to seek better development . Hence, how to safeguard the good order of the capital market, has become Chinese market economy's important topics about developing healthily and orderly. However, in China's capital market, the phenomenon of financial fraud emerges in endlessly, the tactics are renovating ceaselessly as the changing of market environment and the strengthening of government regulation. In recent years, the financial fraud of listed company advances wave upon wave,a series of major financial fraud cases such as Zixin pharmaceutical,Tianneng technology, green earth, fu-sheng wan had happened. The Enterprise's financial fraud severely affects the healthy development of capital markets, and damages the interests of investors,the listed company's financial fraud has become the focus problems of the capital market,It is not only does harm in passing the wrong financial information,Maintain a stable market order and trends, attention and financial fraud.It is reported in Fraud triangle theory that enterprise' s financial fraud must have a combination of pressure,opportunity and self rationalization,it can not constitute a financial fraud without anyone of it .To preferably prevent the happening of the financial fraud, we should start from the various aspects of which causing the financial fraud,From the root to reduce or even avoid the occurrence of fraud.. This article use it as a starting point, analyzing the cases from three different angles about the "three factors" for fraud, summarizing the motivation of financial fraud , then summing up the corresponding prevention measures for financial fraud from three aspects in relieving stress, eliminating opportunities and excuses, avoiding financial fraud at source, to achieve financial cost minimization and profit maximization.This essay taking KZ listed company' s financial fraud as the breakthrough point,using the theory of the fraud triangle to analyzing from all aspects,thus to explore the motivation of company' s fraud and a series of consequences it has brought about,relying on China's current national conditions and the complex economic environment as the background, putting forward some ideas and measures to prevent the financial fraud.