A Case Study Of Financial Fraud In Bao Qian Li Based On Fraud Triangle Theory

With the outbreak of financial fraud involving Le TV and huge related parties,another listed company with a lot of fog has gradually entered the public eye.This company is Bao Qian Li.Based on the theory of fraud triangle,this paper studies the case of financial fraud in Bao Qian Li to achieve insights into the financial fraud of Bao Qian Li and draw the enlightenment and reference for helping investors better identify financial fraud and protect investment.The interests of the company improve the internal governance mechanism of listed companies,warn the accounting audit practitioners,promote the healthy development of the accounting and auditing industry,and maintain the healthy,stable and sustainable development of the securities market.Taking Bao Qian Li Company as an example,this paper studies the case by means of literature research,case analysis,event study and Du Pont analysis,and identifies the financial fraud mode from the backdoor listing process and the business process,respectively.By analyzing the related parties of Bao Qian Li and adopting the event research method,this paper analyzes the economic consequences of financial fraud in Bao Qian Li from three aspects: major shareholders,minority shareholders and the company itself.Based on the theory of fraud triangle,this paper makes an in-depth study on the financial fraud of Bao Qian Li.Based on the theory of fraud triangle,this paper systematically sums up the causes of financial fraud of listed companies from the angles of opportunity,pressure and rationalization excuse.Inspiration and reference from the caseThrough the analysis of Bao Qian Li's financial fraud case,it can be seen that the cause of financial fraud is the fraud triangle theory that follows the three factors of motivation,opportunity and excuses.Combining the fraud triangle theory to study the fraud cases of Bao Qian Li,we can carry out targeted governance against the causes of fraud and help to take measures from the source to reduce the occurrence of financial dance behavior.By controlling the shareholding ratio of executives and guiding the healthy development of enterprises,the company can reduce the motives for fraud;by regulating the internal control system,improving the functions of the board of directors,enhancing the role of the board of supervisors,strengthening the construction of the audit committee and improving the level of external auditing,the company can effectively reduce fraud opportunities;By strengthening ideological and moral construction,we can effectively eliminate the emergence of fraud excuses.Only by starting from the three factors that induce the cause of fraud,the internal and external regulatory agencies can work together to effectively prevent financial fraud,reduce corporate fraud,standardize corporate behavior,and provide investors in the securities market with a A healthy investment environment.