Kunming's Financial Fraud And Prevention Research

With the deepening of marketization,China's capital market has become increasingly sophisticated and has continued to mature.However,many companies blindly pursued the profit on the books for the short-term false benefits,which led to the current incidents of financial fraud in listed companies.For enterprises,the reason for financial fraud is due to the delisting crisis,listing needs,performance needs,when the business development of the enterprise can not meet the actual needs,the use of financial fraud means to obtain false benefits.When enterprises face development difficulties,they will not solve the root causes.The fraud will be exposed sooner or later,and the punishment of the supervision will damage the interests and confidence of the shareholders,damage the image of the company,and seriously disrupt the normal market order.Kunming Corporation,is a machine tool enterprise that blew its many years of financial fraud in 2017.The China Securities Regulatory Commission found that its inflated profits totaled 680 million yuan during the three-year period from 2013 to 2015,and the people involved were all involved.As a high-level,involving a large number of people,the nature is bad,was punished by "top grid",which has brought great adverse effects to the machine tool industry.The research ideas of this paper are as follows:In the first part,the research background and significance are introduced.In the second part,we focus on the theory of financial fraud and motivation.The third part introduces the company that has already delisted from China's A share,Kunming Corporation,as a case to analyze its financial fraud.The fourth part uses the risk factor theory to analyze the causes of financial fraud in Kunming machine from five aspects:morality,motivation,opportunity,exposure possibility and degree of punishment.In the fifth part,according to the reason analysis,the prevention measures are handled one by one,and the Kunming machine and enterprises with similar situations are corrected and paid attention to.The sixth part summarizes the full text.I hope that Chinese enterprises can take the lead and refuse to avoid the temporary crisis by means of financial fraud,and fundamentally analyze and solve the lack of development of the enterprise itself.