Case Study On Financial Fraud Of Wanjiang Logistics

The healthy and orderly development of the securities market are closely related to China's national economic development.However,the financial fraud cases of listed companies in China frequently crops up which is not only undermine the orderliness of securities market but also damage investors' interests.Financial fraud has become one of the severest public nuisances in China's national economy.It is a focus problem for all the stakeholders to identify fraud in financial report of the listed companies timely and effectively.Therefore,it is of great significance to research the identification,motivation and governance of financial fraud in listed companies.The thesis studied the financial fraud in listed companies and put forward corresponding prevention and control methods to promote the sound development of China's capital market,by analyzing the financial fraud case happened in Anhui Wanjiang Logistics(Group)Co.,Ltd.which involved tens of billions amount of money.It guarantees the quality of listed companies financial report at the beginning and protecting the interests of all investors from being infringed.In the first part,the thesis presented the background of the Wanjiang Logistics case and how it was handled at last;analyzed the financial fraud tricks included in the case;identified clues of financial fraud based on financial indicators and industry standards with the help of the original data;and finally found out the evidence of financial fraud in those companies.In the second part,under the guidance of Theory of Fraud Risk Factors,the thesis combined individual and generic risk factors and analyzed the motivation of financial fraud from the perspectives of ethics,intention,opportunity,possibility of exposure and punishment after exposure.Finally,according to the analysis of the issue to give specific prevention and management measures,mainly to the level of the listed company itself and the external environment as the two main lines,from enhancing internal management structure of listed companies,improving internal control environment in listed companies,perfecting law regulations,strengthening law enforcement and so on to prevent fraud happen again.