A Company Financial Fraud Case Study

The rapid development of the socialist market economy in China has made the securities market increasingly valued by companies,investors,and regulatory agencies.Securities market plays an irreplaceable role in the development of economy,but the subsequent financial fraud is becoming increasingly popular.Some companies make financial statements through financial fraud in order to finish IPO process,sending wrong information to investors and creditors,making investors and debtors suffer losses,and the authenticity and reliability of accounting information also be questioned by the public.As the first company that delisting because of financial fraud in China's A stock market.A company is bound to affect investors' confidence in investment.The case study of A company can supplement the case blank of the delisting of Companies in China's securities market.In fact,domestic and foreign scholars and regulators have made a lot of efforts to put an end to the financial fraud of listed companies,but the phenomenon of financial fraud of listed companies is still emerging,which has a serious negative impact on the development of securities market in other countries.Therefore,in order to improve the level of information disclosure of listed companies,protect the interests of small investors and maintain stable operation of securities market,we urgently need to propose corresponding governance measures.The article analyzes the fraud issuing of A company.First,by collecting relevant information and combining with the specific cases of A,the background and significance of fraud issuance are analyzed,and the research contents and methods of the article are introduced.Secondly,expounds the related theory of financial fraud;Again,the case itself based on simple introduction of A case issued corporate fraud,according to the theory of GONE,from greed,opportunity,needs,and exposure to analyze the issue of A company fraud,and gradually analyzes the financial fraud,the study found that A company by falsifying accounts receivable payment letter,rushed back to the accounts payable and prepaid accounts,less the cost of raw materials and the actual control of illegal occupation of funds of listed companies fraud,damaged the interests of small shareholders;Finally,in view of the fraudulent behavior of A company,it puts forward the governance suggestions from four aspects: the enterprise itself,intermediary agencies,supervision departments and investors.