| Recently,the supervision departments of our government have implemented decision making formulated by the State Council to strengthen the supervision and enforcement of capital market,and strictly regulated the securities market.Scholars at home and abroad have done the research on the financial fraud of listed companies particularly and systematically,which have obtained a lot of research results.But the problems of the financial fraud of listed companies are still going on.As the securities law is currently under revision in our country,research on the financial fraud of listed companies is of great practical significance.After reviewing the relative literature,based on the theory of fraud risk factors which is the most robust theory of fraud motivation,the article explore the research on the fraud motive and the means of fraud and put forward countermeasure and suggestion by studying huaiji dengyun auto-parts company limited's case of financial fraud.Huaiji dengyun auto-parts company limited have been fraudulent before and after listing,and it is the only listed company in the domestic market that mainly produces and sells automotive engine valves.In2017,huaiji dengyun auto-parts company limited was punished by the CSRC.The CSRC pointed out that there were false records and major omissions in the IPO application documents,2013 and 2014 annual statements,and the first quarter report of 2015.It's methods of fraud include non-payment related expenses,early confirmation of income,less confirmation costs,illegal external borrowing and concealment of related parties and related transactions,etc.At the same time,the intermediaries,including accounting firm,securities company and law firm,had been punished by the CSRC.Through the analysis of huaiji dengyun auto-parts company limited,we found that the fraud motivation include bad moral quality of the related responsible person,the stress come from performance decline and financing generated fraud motivation huaiji dengyun auto-parts company limited provided the opportunities for fraud because of the problems of its internal control problems and equity structure,and with intermediary institutions' dereliction of duty and the limited of government regulation ability,it reduces the likelihood of fraud being exposed,punishment is not enough.After studying the fraud motivation of huaiji dengyun auto-parts company limited,the article puts forward the countermeasures and suggestions on the management of financial fraud based on the theory of fraud risk factor.First of all,we propose to strengthen the ethics education for managers and accountants.Secondly,it proposes to reduce the pressure of managers by carefully selecting the expansion opportunity and choosing managers with high capability to weaken the motive of the fraud;Again,this article attaches great importance to the internal control and strengthen the construction of the board of directors,and optimize the enterprise ownership structure to build a good internal environment to curb fraud opportunities.In addition,it advocates the certified public accountants to peer review,and improves the agency cost of fraud,and securities the audit time to improve the external supervision system,in order to improve the reveal the possibility of fraud;Finally,it is suggested to optimize government regulation by increasing the punishment of financial fraud.I sincerely hope that it will give the listed companies such as huaiji dengyun auto-parts company limited some suggestions to prevent the financial fraud and provides some references and means to check the cases of financial fraud by relevant intermediaries,to supervise and control the cases of financial fraud by government supervision departments. |
