A Case Study On Financial Fraud Of Nanjing Textiles Company Limited

With the development of the capital market,the phenomenon of financial fraud emerges one after another,which has seriously affected the healthy development of China's economy.As a kind of serious dishonest behavior,financial fraud not only affects the national macro-control policies,but also damages the interests of investors.Go back,to solve the financial fraud problem fundamentally,to find out the reasons and means of financial fraud,and then puts forward some effective methods for these reasons means.In this paper,the case of financial fraud in the case of financial fraud,financial fraud causes,means and measures are analyzed,and on this basis,to prevent the financial fraud of listed companies made recommendations.Although Nanfang textiles company limited financial fraud is not a popular topic,but because of the special nature of the enterprise,the amount involved is huge,long time involved and the punishment of not worth mentioning are very valuable.This paper uses the method of theoretical analysis,literature research and case analysis combining the related theories applied first on the concept of financial fraud and the definition was introduced in this paper,let the reader have a basic understanding of the financial fraud,convenient for the understanding.And then introduces the basic situation of the company,for the subsequent analysis of the nature of its financial fraud of the reasons for the enterprise foreshadowed.After that,this paper simply introduces the whole process of financial fraud cases,analyzes the special features of this event,which is the reason why this case is worth studying.Then in the core part of this paper,first of all from the greed,opportunities and needs,exposed four aspects of the reason Nanfang textiles company limited financial fraud cases,which mainly include management interest driven,corporate governance chaos,CPA collusion,avoid the risk of delisting,local governments excessive protection and low cost of fraud.Then combined with the actual case study found that the main means of fraud,including inflated operating income,virtual operating costs,reduce the provision of depreciation and amortization,illegal recognition of deferred income tax assets and defrauding export tax rebates.Based on the analysis of the solution to Nanfang textiles company limited financial fraud,including the optimization of ownership structure,perfecting shareholders voting system,perfect the system of board of directors,board of supervisors and the establishment of executive incentive mechanism.Finally,through the analysis of the case,the research extends to the listed company,and puts forward some suggestions on how to prevent financial fraud,the phenomenon including: improving management occupation morality,perfect the corporate governance structure,strengthen the supervision of accounting firms,and improve the delisting system,strengthen the supervision of local government and raise the cost of fraud.The innovation of this paper lies in the study of the financial fraud of the financial management of the financial fraud GONE.GONE theory of financial fraud as a classical theory in the field of accounting,the crystallization of the crystallization of the wisdom of predecessors,very useful.Nanfang textiles company limited financial fraud after the disclosure has attracted much attention in recent years,research on this case is not a minority,but according to the published papers,there are few GONE theory as the starting point to analyze the causes of the case.Based on the case study of Nanfang textiles company limited financial fraud,on the prevention of financial fraud of listed companies Chinese put forward a bit heavy opinion,in order to make a little effort for the development of China economy.