Case Study Of Financial Fraud Prevention In Listed Companies

In recent years,the rapid development of market economy,more and more companies eager to through the way of capital operation,to obtain more resources,get big pay,listed companies and their executives of financing rights issue and avoid delisting and so on various aspects of motivation.The fictitious technique such as income,related party transactions to operating profits of financial fraud,lead to enterprise financial information disclosed by false,misleading to investors,disturb the order of capital market and damaged the interests of investors.In 2017,the CSRC investigated and dealt with more than 10 cases of fraud,such as Kunming machine,Zixin pharmaceutical,Shenglaida,Hengshun zhongsheng and so on.Generally speaking,the number of fraud companies in the total number of listed companies accounted for a small proportion,but the amount involved and the negative impact is huge.The government has also introduced relevant laws and regulations to reduce the probability of financial fraud,but the fact has proved that listed companies' financial fraud has not been effectively regulated.In the face of the severe situation,analyze and identify financial fraud means of listed companies,formulate prevention and control objectives and principles to be followed,implement prevention and control procedures,and then propose corresponding prevention and control measures.On the basis of summarizing relevant research results at home and abroad,this paper makes a systematic study on the prevention and control of financial fraud of listed companies by using internal control theory,normative analysis and case analysis,and drawing on international experience.The research content mainly includes the following three parts: the first part is the theoretical analysis,that is,on the basis of sorting out the relevant theoretical research at home and abroad,theoretical analysis of the listed company's financial fraud types,motivation and prevention and control objectives,principles,procedures and methods and other basic problems;The second part is the case study,that is,on the basis of theoretical analysis,introduced the basic situation of Erkang pharmaceutical,a listed company,and made a case study on the causes and motivations of its financial fraud as well as the prevention and control system.The third part is countermeasures and Suggestions,that is,on the basis of theoretical analysis and case analysis,put forward countermeasures and Suggestions for enterprises to prevent and control financial fraud.Based on the theoretical analysis and case analysis of financial fraud of listed companies,this paper believes that to prevent and control financial fraud of enterprises,it is necessary to improve and implement internal control system,strengthen external supervision,play the role of intermediary institutions and improve the ability of investors to protect themselves.This paper hopes to provide reference for other companies to establish financial fraud prevention and control system through the case study of Erkang pharmaceutical's financial fraud prevention and control.