The Case Study Of Financial Fraud In KH Company

With the rapid development of China's market economy,the competition between enterprises has become increasingly fierce.However,corporate competition is accompanied by an endless number of financial fraud cases,which severely hit China's capital market.Observing the financial fraud of listed companies occurred in China's capital market,we found that agricultural listed companies have higher cheating frequency than other industries and are in high-risk areas of financial fraud.In recent years,agricultural listed companies have repeatedly incurred financial frauds.Zhangzidao,Wanfushengke and Xindadi have been found with major financial falsifications,which have brought a huge impact on China's capital market.Due to the industry characteristics of agricultural companies,it often has low profitability and unstable business performance.It is generally difficult to maintain good operations and meet the specific listing standards.As a result,there is a large incentive for agricultural listed companies to fraud.Therefore,we must pay sufficient attention to the financial fraud of agricultural listed companies.By analyzing the causes of the implementation of fraud of agricultural listed companies,we can fundamentally propose suggestions and solve these problems.We try to avoid the occurrence of similar financial fraud cases as far as possible.And it also has extremely important significance for maintaining the healthy development of the socialist market economic order.KH Company is one of the representatives of agricultural company that attempted to achieve backdoor listing through financial fraud.The company was involved in major assets reorganization with BS shares.The company maliciously falsified the financial information from 2011 to April 2014 by inflating assets and operating income,so as to inflate profits to gloss over the financial statements.Finally,it attempted to achieve the purpose of illegal listing.As a result,it smashed his foot with a stone.The asset restructuring was terminated,and the backdoor listing was ended in failure,and KH Company was punished by the China securities regulatory commission for its fraud.This report mainly researched the case of financial fraud of agricultural company-KH Agriculture Co.,Ltd.,and used the combination of literature,case analysis and other methods of writing reports,and also combined with the related audit theory knowledge.Through the collection of KH Company's basic information,including internal equity structure,financial statements and audit reports,etc.,the report analyzed the means of its financial fraud.Based on the theory of fraud triangulation and information asymmetry,it focused on analyzing the problems of financial fraud in KH and the basic causes of fraud.At the same time,this paper also gave the corresponding targeted countermeasures and preventive suggestions.It may play a certain role in minimizing the occurrence of financial fraud in agricultural enterprises.It is of great significance to standardize the economic order of China's securities market and maintain the sustained and healthy development of the securities market.