Case Study On Financial Fraud Of Guangdong Golden Glass Technologies Limited

In recent years,domestic financial fraud cases have occurred frequently,resulting in financial fraud cases such as Kangmei Pharmaceutical,Fushun Special Steel and Kangde Xin,which have aroused widespread concern in the society.It can be seen that at present,there is a trend of increasing the number of well-known companies and the amount of fraud.Financial fraud not only damages the image of the enterprise and is not conducive to the long-term development of the enterprise,but also misleads the information users to make wrong decisions,infringes the interests of the majority of investors,attacks their enthusiasm for investment activities,and is not conducive to the stable and healthy development of China’s securities market.On the whole,it is of great significance to conduct in-depth research and discussion on financial fraud of listed companies.In this financial fraud case,the fraud lasted for a long time with a large amount of money and seriously damaged the interests of investors,causing a bad impact on the society.In addition,Golden Glass is the leading enterprise of special glass in China,which belongs to the manufacturing industry with a large number of manufacturing enterprises.The selection of this company is also a reference for similar industry companies with similar problems.Therefore,this paper selects Guangdong Golden Glass Technologies Limited as a case company to study,and analyzes the financial fraud means,fraud causes,preventive measures and enlightenment of the case company by using the literature research method and case study method,and hopes to provide some reference for reducing the occurrence of financial fraud,standardizing the order of China’s securities market and promoting the healthy and orderly development of China’s capital market.The research process of this paper is mainly divided into the following four parts.The first part is the introduction,which introduces the research background,research significance,research methods and related research results in the field of financial fraud at home and abroad,laying a theoretical foundation for subsequent research.The second part is the introduction of financial fraud cases of Golden Glass,including the general situation of Golden Glass Company,the review of financial fraud cases,financial fraud methods and penalties,etc.Financial fraud measures adopted by Golden Glass include inflated income and profits,inflated monetary funds,and undisclosed non-operating funds occupied by related parties.The third part is the analysis of the causes of financial fraud.Based on the theory of fraud risk factors,the causes of financial fraud of Golden Glass are analyzed from five dimensions of risk factors.The study found that the reasons for the financial fraud of Golden Glass are as follows: the company personnel did not abide by professional ethics,and the company created a corporate culture atmosphere without integrity;Poor performance,fierce competition in the industry,and the need for scale expansion;The defects of internal control and the failure of independent directors and board of supervisors to play a supervisory role give fraudsters an opportunity;The lax supervision of relevant government departments and the lack of diligence of external audit institutions reduce the possibility of fraud being discovered;The punishment for fraud is small and the cost of fraud is low.The fourth part is the enlightenment of this case.According to the above research results,this paper obtains the enlightenment for listed companies,regulatory agencies,audit institutions and investors,and puts forward measures to prevent financial fraud.As a listed company,we should strengthen the internal moral construction of the listed company,improve the professional level and professional ethics of senior executives and employees,create a positive and honest corporate culture environment,formulate a reasonable development strategy according to the actual situation of the company,establish a sound internal control system,and improve the supervision role of independent directors and the board of supervisors.As a regulatory body,it is necessary to improve the fraud supervision mechanism,improve the supervision effect of the CSRC,strictly supervise,carefully review,never tolerate fraud,increase the intensity of fraud punishment,increase the amount of punishment,and create a healthy market environment of mutual benefit and win-win between listed companies and investors.As an audit institution,we should improve the quality of audit and keep the independence of audit.As an investor,we should keep our eyes open,enrich investment knowledge,and enhance the awareness of risk prevention.