Study On The Causes And Prevention Of Financial Fraud In Kanghua Agriculture

The frequent occurrences of financial fraud incidents have caused serious damage to enterprises,investors and the securities market.As far as enterprise development is concerned,although adjusting the actual situation of the company through financial fraud may avoid the risk of delisting or achieve the purpose of listing,this will not cause the company to obtain real benefits,but will affect the sustainable development of the company because of illegality.The financial fraud of enterprises will damage the economic interests of investors,and it will not only destroy the market order,but also seriously affect the sustainable development of the national economy.As a big agricultural country,the development of agricultural enterprises is the focus of the country.Along with the development of agricultural enterprises,financial fraud cases have emerged in an endless stream,such as Wanfushengke and Beidahuang.Therefore,the study of financial fraud in agricultural enterprises can help prevent fraudulent behavior,protect the interests of investors,and promote the stable development of agricultural enterprises.This paper selects Guangxi Kanghua Ecological Agriculture Planting Development Co.,Ltd.(hereinafter referred to as Kanghua Agriculture)as the research object,and analyzes the causes of financial fraud in the process of asset restructuring of Zhejiang Busen Garment Co.,Ltd.(hereinafter referred to as: Busen Co.,Ltd.).This paper first introduces the major issues of Kanghua Agriculture and Busen's asset restructuring process,and analyzes the purpose and means of financial fraud in the process of restructuring,and analysis of the Causes of Kanghua Agriculture's Financial Fraud Event from Kanghua Agriculture's Self Level and External Supervision Level.Research shows: First,through the analysis of the reasons of the company's own level,it is found that the lack of integrity and ethics of the management and financial personnel is the inherent reason for the fraud.Grassroots financial personnel violate the accounting standards and professional ethics guidelines to assist management in making fraud.In addition,a single shareholding structure makes the company's management rights actually in the hands of one person,and the highly concentrated rights will also make the internal control of the company useless,creating opportunities for financial fraud.Secondly,through the analysis of the reasons of the external supervision level,it is found that due to the dereliction of duty of the audit institution,the imperfect social supervision system and the insufficient punishment of market supervision in China,it will reduce the possibility of discovering financial fraud and illegal costs.Finally,this paper proposes specific suggestions for preventing financial fraud in agricultural enterprises from the aspects of improving the internal prevention mechanism of enterprises and strengthening the governance of external supervision,in order to improve the financial information quality of agricultural enterprises.