Case Study On Financial Fraud Of A Listed Company

This paper focuses on the prevention of financial fraud of listed companies.At present,the problem of financial fraud in China's capital market has happened repeatedly despite the constant prohibition and even increased.The financial fraud of listed companies has seriously damaged the legitimate rights and interests of the majority of participants in the capital market,which is not conducive to the healthy development of China's capital market.Exposure in early 2018,A company's financial fraud case,the case to adapt to the current trend of economic development,on the case study,to be able to further find A new economic situation,causes of financial fraud of listed companies,and extracted the revelation to guard against financial fraud of listed company,to purify the market environment,under the new era are of practical significance for promoting the healthy development of capital market in China.In this paper,GONE theory is applied to study the prevention of financial fraud of listed companies as the main line and target,and internal and external causes of financial fraud of company A are analyzed.The study found that as the controlling shareholder of company A,the "the Wang's family" was greedy in character and lacking in professional ethics,and the need to seek quick success and quick profits to develop the family business pushed them to carry out financial fraud.Due to the excessive concentration of the company's equity,the company formed a family dictatorship.The " the Wang's family " took advantage of the loopholes in existing laws and regulations,exerted the power of strong stock holder,and expanded the opportunity channels for fraud through the decision-making power of major matters of the company and the appointment and removal of personnel at the management level and management level.At the same time,transactions between listed companies and related and non-related parties increase the difficulty of finding fraud.Due to the failure of accounting firms and securities companies to perform their duties diligently,the financial fraud of company A could not be timely detected from the outside.In addition,the relatively light punishment measures of the external regulatory agencies lead to the fraudsters' fraud benefits greater than the fraud costs,which is difficult to deter,indirectly contributing to the occurrence of financial fraud.According to the analysis of the GONE theory,this paper respectively from the four factors of GONE theory,summed up the enlightenment from this case to prevent financial fraud of listed companies: against greed and exposure factors in the fraud of the problem of low cost,this paper argues that can from the amount of fraud,criminal responsibility and punishment scope of three aspects: raise the cost of fraud,make the greedy entrepreneurs from fraud or low professional ethics;In the field of prevention of opportunity factors,this paper believes that relevant laws and regulations can be improved to reduce the opportunities of financial fraud,including: improving the rules of the shareholders' meeting to curb the negative impact of " the single-large shareholder";increasing the proportion of independent directors in the board of directors within a reasonable scope;forcing listed companies to set up external supervisors.In view of the need to prevent factors,this paper believes that improving the delisting system of the capital market to avoid "Back-door" listing of investors with bad motives in the capital market can curb the bad needs of some entrepreneurs.It is difficult to identify financial fraud in the exposed factors.This paper believes that government regulatory departments and accounting firms can use artificial intelligence and big data technology to improve the ability to identify fraud of related parties.In the current situation of financial fraud means increasingly complex and diverse,the relevant regulatory departments can appropriately expand the audit authority of certified public accountants,in order to improve the efficiency and effectiveness of certified public accountants audit.