Study On External Supervision Countermeasures Of Financial Fraud

The vigorous development of capital market brings opportunities to the listed enterprises from domestic and overseas.At the beginning of this century,from Enron incident in the United States,Steinhoff,Olympus company from Japan,to the financial scandal of Chinese GreenLand biological company,ZiXin Pharmacrutical Industrial company,and Luckin coffee fraud exposed currently,all making the whole world astonished.Those enterprises made false disclosure out of their own selfish desire,which not only made small and medium investors suffered losses,but also greatly demaged the order of the economic market.For investors and the whole market,the financial statements of enterprises,as the main form of external disclosure,once the internal control of enterprises is not perfect,even out of contral,the possibility of financial report distortion is very big.So,it is particularly important to take corresponding countermeasures from the perspective of external supervision.Therefore,this paper analyzes two typical cases of fraud,that is,Ningbo Sunlight Electrical Appliance company and Jiangsu Yabaite Technology company,Based on the perspective of external supervision,this paper analyzes the external attention to fraud,the work quality of external supervision institutions' auditing,and the current legal environment.Then finds out the fraud motive in the details.Both of them are not good in management after merger(or reorganization),and both of them are fraudulent in order to avoid delisting.The unique point is that there is performance commitment between Yabaite and shareholders.Cases fraud way and characteristic is different from the current law of fraud,is unique in using the judicial system and government policies: although the Sunlight fraud amount is not huge,but the fictitious government subsidies,and non-operating income through subtle subject is hard to detect,Yabaite,not only the amount is huge,and in order to improve the real degree of cross-border fraud,to newsjacking "one belt and one road",falsify letters of both countries' politicians and even complete fiction overseas engineering project and trade,falsify a variety of documents and contracts at the same time,the technique is genuine;In view of the problems exposed by these two cases,based on the perspective of external supervision,specific regulatory countermeasures were proposed from the three levels of relevant government departments,regulatory agencies and the public to Government departments,auditing institutions,investors,peers and new media so on.Although the financial fraud behavior is numerous,but with the real is always not long,Investigation will be the final result,this paper take my meter power,only to reduce the financial fraud mess,to maintain a good and stable economic market.