A Study On The Financial Fraud In Beidahuang Company Based On Internal Control

In recent years,financial fraud are increasingly springing up in capital markets,such as Zixin Pharmaceutical,Tiannong Technology,Shenxianyuan and another case.The financial fraud is not only detrimental to the enterprise's image but also jeopardizes the market economy.After studying the existing research,it was found that the effective internal control system becomes the key to the healthy development of the enterprise.However,the internal control of the enterprise involved in financial fraud is weak.On August 18,2016,the China Securities Regulatory Commission concluded that Beidahuang company Limited has involved in financial fraud and produce a written decision on the administrative penalty.Therefore,this paper makes a specific research on financial fraud in the view of internal control,taking Beidahuang company as an example.In this paper,I use methods of inductive analysis,qualitative analysis combining with quantitative analysis and and case study.Combined with internal control theory,information asymmetry theory and fraud triangle theory,the paper analysis the case of financial fraud in Beidahuang company,combing with the financial data of the Beidahuang company from 2011 to 2016,systematically reviewing the financial fraud behaviors and internal control situation of Beidahuang company,and the means and serious consequences also are revealed.Then the reasons of financial fraud are illustrated from five internal control elements angles respectively.Finally,the corresponding countermeasures to prevent financial fraud according to these reasons are presented.Preventing and correcting errors is one of the basic objectives of internal control.Through the research in this paper,it concludes that perfecting the internal control system can effectively restrain the financial fraud.All enterprises should establish a scientific and reasonable internal control system,improving corporate governance mechanisms,preventing financial fraud and increasing company value.The financial fraud study is conducive to the further development of internal control and financial fraud theory,and promotes the healthy development of China's capital market.