Research On Financial Fraud Of Chengxing Company

Throughout the development of China's capital market for more than 20 years,financial fraud has been on stage almost every day.Even though it has aroused widespread concern,the complex and changeable fraud has not been completely eradicated,which has become a major problem in the capital market.Financial fraud will damage the reputation of the company internally,affect the profits of the company,lead to bankruptcy and liquidation of the company,affect the economic interests of investors externally,damage the healthy and harmonious operating atmosphere of the securities market,and hinder the way forward of the capital market in China.Therefore,it is urgent to curb financial fraud.In this paper,the financial fraud cases of JiangSu ChengXing Phosphorus Chemical Co.,Ltd.(hereinafter referred to as ChengXing Co.,Ltd.)are taken as the research object,and the fraud triangle theory is taken as the research basis.The fraud techniques,causes and prevention measures of financial fraud are analyzed in depth,which provides a basis for controlling the occurrence of financial fraud,maintaining the order of the securities market and promoting the harmonious development of China's economy some suggestions.This article not only summarizes and analyzes the financial fraud means of ChengXing stock punished by the CSRC,puts forward the corresponding governance measures,but also calculates the corresponding financial indicators by mining the financial items of the company's false records in detail,and studies the existence of the illegal operation of ChengXing stock through the false records of financial reports to reduce the accrued bad debt reserves,so as to falsely increase the current company's operating profit Run's fraud.This paper is divided into four parts.The first part is the background and significance of fraud,the method and content of case study,the theoretical basis of writing and the literature consulted,which determines the research direction and overall framework of this paper.The second part is a detailed description of the financial fraud case of ChengXing stock.Firstly,it introduces the company scale andoperation structure of ChengXing stock.Secondly,it summarizes and analyzes the process of financial fraud of ChengXing stock.It is clear that the company is a financial fraud in the way of illegal information disclosure and false financial report.The third part is based on the theory of fraud triangle,which analyzes the causes of financial fraud of ChengXing stock.The core idea of the theory is that the company's financial fraud needs pressure,opportunity and excuse,which exist at the same time,complement each other and jointly promote.Therefore,this part starts from the three elements of pressure,opportunity and excuse to lead to financial fraud of ChengXing stock The reasons are analyzed in depth.The fourth part is based on the triangle theory of fraud,from the three factors of pressure,opportunity and excuse of fraud,in order to alleviate the pressure factors,reduce the opportunity factors and block the excuse factors,put forward the measures to prevent financial fraud.Secondly,the financial fraud means of ChengXing company are summarized and analyzed.It is clear that the company has financial fraud behaviors such as illegal information disclosure and false financial report recording.The third part is based on the theory of fraud triangle,and analyzes the causes of financial fraud of ChengXing.The core idea of this theory is that the company's financial fraud needs pressure,opportunity and excuse,which exist at the same time,complement each other and promote together.Therefore,this part makes an in-depth analysis on the causes of financial fraud of ChengXing stock from the three elements of pressure,opportunity and excuse.The fourth part is based on the triangle theory of fraud,from the three factors of pressure,opportunity and excuse of fraud,in order to alleviate the pressure factors,reduce the opportunity factors and block the excuse factors,put forward the measures to prevent financial fraud.Through the research and analysis of this paper,the following conclusions are drawn: in the cause of financial fraud of ChengXing stock,the pressure is the "main force",the opportunity is the "booster",and the excuse is the "flux".The pressure factors of ChengXing's fraud behavior are industry pressure and operation pressure,the opportunity factors are internal and external opportunity conditions of the company,and the excuse factor is to rationalize the fraud.The prevention and controlmeasures for ChengXing's financial fraud are also based on the above three factors,namely,to increase environmental protection projects and optimize the industry structure to get out of business difficulties to relieve the industry pressure,to reduce the internal and external opportunity conditions of the company to reduce the opportunity factors,to establish good values to strengthen the construction of corporate culture to block the excuse factors.The purpose is to hope that it can be used for financial fraud in China some suggestions are provided for the rectification of the problem.