Case Study On Financial Fraud Of Fushun Special Steel Co.ltd

With the rapid development of China's economy has faced with various challenges,part of the use of a variety of financial fraud of listed company means to whitewash financial statements,trying to package their assets to seek interests,to deceive investors and other stakeholders,seriously hindered the healthy development of capital market in China,so it will still need to speed up the in-depth study of financial fraud cases.Not only can continue to provide relevant theoretical reference,but also can guide the standard operation of enterprises.This paper first explains the theory of financial fraud,which lays a theoretical foundation for this paper,and then studies the typical cases of the fraud of Fushun Special Steel Company.The fraud lasted for 8 years and involved a sum of up to 1.9billion yuan.The fraud incident was long and serious,which is a very representative case.Through the implementation of several means of financial fraud in Fusteel enterprise is introduced,and then analyzes the motivation of financial fraud in Fusteel company.From the four angles of the GONE theory,greed,opportunity,demand and exposure,this paper analyzes the motivation of financial fraud of Fugang Company,and studies the impact of financial fraud on the company itself,shareholders and relevant stakeholders,accounting industry and even the whole society.Finally,the author puts forward some suggestions to prevent the financial fraud of listed companies.First,we should improve the corporate governance structure and strengthen the construction of internal control system.Secondly,to improve the relevant legal system,mainly to strengthen the financial fraud punishment.Finally,the quality of practice of third-party institutions should be improved,and the independence of external audit should be enhanced by improving the professional skills and business abilities of institutional personnel.The study of the four factors of the GONE theory and the corresponding preventive measures in this paper actively promotes the research on financial fraud behavior of listed companies in China,in order to reduce investors' losses,improve the vigilance of relevant departments,and create a good capital market environment.