A Case Study About Financial Fraud Of Shandong Molong Based On The Theory Of Fraud Risk Factors

Financial fraud has been emerging all over the world.Since the reform and opening up,China’s capital market has developed rapidly,and financial fraud incidents of listed companies have occurred from time to time.The financial fraud of listed companies harms the interests of investors,disrupts the development order of the capital market,and brings serious harm to the national economy.The delisting bill announced by Shanghai and Shenzhen in 2012 has deepened the delisting system of listed companies.These actions of the CSRC have undoubtedly put forward more stringent requirements on the financial reports of listed companies.Listed companies tend to use a series of more subtle means to conduct financial fraud,prevent delisting,and strive to gain more advantages in the securities market.In addition,the existing punishment for financial fraud is lighter than the financial fraud benefits of listed companies,and the form of punishment is relatively simple,and there is still a lot of room for comprehensive prevention and control of financial fraud.Therefore,the active efforts to build a healthy securities market has become an urgent problem,which requires more researchers to devote themselves to the study of financial fraud of listed companies.This article uses this order to progressively promote the development of the article.The order is to ask questions,analyze the problem,and try to solve the problem and provide reasonable suggestions for operability.The introduction of financial fraud overview and the fraud risk factor theory belong to the problem put forward,the case introduction and the case corporate motivation analysis belong to the problem analyzed,and the proposal belongs to the problem solved.Firstly,this paper summarizes and sorts out the relevant literature on financial fraud,introduces the motivation,general means and harm of financial fraud,and introduces the theory of risk factors of fraud to provide a theoretical basis for the analysis of financial fraud.Secondly,through the introduction of the case company and the factor analysis of the motivation,the motivation of Shandong Molong is decomposed in an all-round way,and the specific motivation of Shandong Molong for financial fraud is obtained.Finally,the motivations of the previous analysis are taken to prevent the financial fraud of listed companies.Only by curbing the causes of financial fraud can we effectively reduce financial fraud in the capital market.The full text has six parts.The first and second parts are the introduction and related theories.This part presents the issues to be studied in this paper,including the problems found,the background and significance of the research.It introduces the methods,theories and innovations of research,and mainly expounds the concept of fraud risk factors and the concepts,general methods and harms of financial fraud.The third part is the introduction of the financial fraud case of Shandong Molong.This section details the basic situation of Shandong Molong Company,the fraud process and the punishment result and the specific means of financial fraud in Shandong Molong was systematically described.The fourth part is the analysis of the motivation of Shandong Molong financial fraud.In order to fully understand the company’s financial fraud drivers,we use the risk factor theory to analyze the management’s financial fraud motives,management’s moral quality,the chances of fraud,the possibility of fraud being discovered,and the nature and extent of the punishment for fraud after being discovered one by one.The fifth part is the inspiration to prevent financial fraud.This part puts forward specific suggestions for preventing financial fraud based on the motivation of fraud risk factor theory.The sixth part is a summary of the full text.