A Case Study Of Financial Fraud From The Perspective Of Internal Control

With the rapid development of China’s capital market,the securities market is becoming more and more perfect.However,financial fraud is a "time bomb" in China’s capital market.On December 28,2018,the financial report of 2016-2018 disclosed by Kangmei Pharmaceutical Co.,Ltd.was materially false,suspected of violating Article 63 of the securities law and other relevant provisions,and suspected of information disclosure violations.According to the relevant provisions of the securities law,the CSRC decided to put Kangmei Pharmaceutical Co.,Ltd.on file for investigation.On May 17,2019,China Securities Regulatory Commission held a press conference that Kangmei pharmaceutical had three major crimes: first,falsely increasing deposits by using false bank documents;second,income fraud by forging business vouchers;third,some funds were transferred into the accounts of related parties to buy and sell shares of the company.This kind of stock market chaos,we put aside the phenomenon to see the essence,we can conclude that the internal control of these companies has failed.Although the internal control is gradually reshaping the function of its due system,it is not difficult to see that the phenomenon of the failure of internal control in the capital market is still severe.Based on this,as the main body of national economic cell and market development,the effectiveness of internal control has become the focus of theoretical circles.Most of the relevant literature at home and abroad analyzes financial fraud and internal control from the perspective of empirical analysis,few from the perspective of case analysis.Therefore,this paper studies financial fraud from the perspective of internal control defects.Taking the financial fraud of Kangmei pharmaceutical industry as an example,we can understand the financial fraud behavior more clearly,and understand the factors affecting financial fraud intuitively The conclusion and policy suggestions have a positive effect on the securities market of our country.