The Study On Internal Control Of Financial Fraud In The *ST Boyuan Company

After Enron,the United States enacted the Sarbanes-Oxley Act in 2002,which guided the study of financial fraud governance into the enterprise internal control issues,whereby most of countries began to explore a suitable internal control system for their capital market development.In reference to the US-based Western developed capital market experience on the construction of internal control system,our country successively in 2008,2010,introduced our country enterprise internal control standard file,which aims to strengthen the enterprise internal management,improve enterprise's ability to resist risk,purify the capital market at the same time,increase the quality of information disclosure of listed companies in our country.The existence of internal control is to serve the enterprise's internal management,and to some extent the level of internal management to be reflected indirectly through financial data.Informally speaking,listed companies' financial fraud behavior is to provide false financial data on their financial reports,so the financial fraud have a connection with the enterprise internal control.In companies happened Financial fraud the quality of internal control are usually not effective,because loopholes in the internal control of enterprises will be the birth of financial fraud motivation,opportunity and excuse.Therefore,study of financial fraud related to internal control of the business is important,it will have to our dependent norm of enterprise internal control to effectively inhibit the purpose of the implementation of enterprise financial fraud.It will help us to rely on the norms of corporate internal controls to achieve the purpose of enterprises to implement effective suppression of financial fraud.This paper based on the theory of financial fraud and internal control,to select the actual financial fraud case-Zhuhai Boyuan financial fraud cases,will provide an intuitive way to reveal the connection of Zhuhai Boyuan's financial fraud behavior with its internal controls.The first part of the article,firstly introduces the related research background,research significance.Then,it reviews the domestic and foreign literatures about financial fraud,internal control and their interactive relationship,and makes a brief review of the related literature.The second part,introduction of the basic theories.Firstly expounds the relevant basic theories of financial fraud,then briefly introduces the development of internal control system in our country,and the main content of the internal control system and regulations in our country,finally,combined with the related theory of financial fraud,from the perspective of five elements of internal control,analysing of the relationship between enterprise financial fraud and internal control,which lays theoretical foundation for the later specific case analysis.The third part,combined with the basic theory of financial fraud,introducing of*ST Boyuan financial fraud case,including the history of Boyuan company,the motivation about it's fraud behaviors,the ways used by Boyuan,and the impact of it's fraud behaviors.The fourth part,taking the internal control elements as the breakthrough point,analyzes the problems and causes of the*ST Boyuan's internal control in*ST Boyuan financial fraud cases.The fifth part,give some suggestion to internal control deficiencies which exists in Boyuan,in order to optimize*ST Bo yuan internal control,and effectively restrain the purpose of financial fraud.Through analysis of*ST Bo Yuan internal control,we find that the internal control of Boyuan company exists many defects,unreasonable corporate governance structure,ignoring the integrity of enterprise culture construction,not a sound risk assessment mechanism and nonstandard control activities,the absence of the internal supervision is the cause of the implementation of the financial fraud.