Research On Prevention And Control Of Financial Fraud Based On Risk Factor Theory

Under the supervision of the CSRC,the financial fraud phenomenon of listed companies in China is still emerging,which not only seriously infringes the interests of investors,but also is not conducive to the allocation of economic resources.Therefore,solving such problems has become a top priority.Based on this,the research question in this paper is how to reduce the possibility of financial fraud in listed companies and build a healthy capital environment.This article takes Boyuan Investment as an example to conduct an in-depth analysis of research issues.Prev:ious research on fraud of listed companies is mostly based on GONE theory,focusing on the analysis of fraud means.The other literature research based on the theory of fraud risk factor neglects the consideration of China’s regulatory environment change and delisting system.Most of the fraud prevention proposals are based on the internal main body of listed companies and less on the external environment.Therefore,taking Boyuan Investment Delisting as an example,based on the risk factor theory,this paper analyzes the fraudulent means of Boyuan Investment and its general risk factors and the causes of fraud under personal risk factors,and proposes countermeasures based on five fraud driving factors.The research ideas of this paper are as follows:firstly,taking Boyuan investment as the research object,combing the process of forced delisting of Boyuan investment,firstly,analyzing the fraudulent means of Boyuan investment concretely,then taking the risk factor theory as the theoretical basis,studying the causes of financial fraud of Boyuan investment separately from five motivation factors,among which the opportunity factor is that the imperfect internal control system of the company leads to more fraudulent opportunities.Fraud exposure factor is that the audit quality of accounting firms is low,which leads to the possibility of fraud being exposed.The degree of punishment factor is that the relevant laws and regulations are not perfect,the former punishment intensity is small,the former punishment is light,the moral factor is that the relevant personnel lack professional ethics,the motivation factor is the motivation of poor management "shelter" and in order to co’ver up the failure to achieve performance commitments.Finally,based on the five motivation factors,the paper puts forward the countermeasures to prevent and control the financial fraud of listed companies,hoping to reduce the occurrence of financial fraud.Research objectives and expected findings:First,the case study of Boyuan Investment,which was forced to withdraw from the market,was conducted on the basis of risk factor theory,and the motivation of listed companies was studied.Second,the analysis of Boyuan Investment delisting Fraud cases can serve as a warning to other listed companies,so that they can improve the internal control system to improve the internal environment.The external environment such as the auditing quality of accounting firms,supervision by the CSRC,and delisting system should also be improved,and internal and external synchronization should be carried out to make the capital environment develop healthily.Research value and practical enlightenment significance:This paper puts forward the countermeasures of financial fraud prevention of listed companies based on risk factor theory,which is of great significance for improving the financial fraud phenomenon of listed companies.It is beneficial for listed companies to improve internal control,improve corporate governance structure and form a good enterprise.Culture promotes its healthy development.For the entire capital market,it is conducive to strengthening the supervision of listed companies by the regulatory agencies,regulating the information disclosure of listed companies,and playing a positive role in improving related laws and regulations such as the delisting system,thereby improving the capital market environment and building a good capital market atmosphere.