Research On Financial Fraud Of Selen Science&Technology Based On GONE Theory

In recent years,China’s capital market benefits from the promotion of rapid economic development and gradually matures.However,the number of listed companies with financial fraud in the capital market has increased year after year.Financial fraud will not only seriously disrupt the good and orderly development of various industries,but also reduce the efficiency of resource allocation in the securities market and damage the interests of investors.The implementation of fraud in listed companies is to use the long-term development of the company in exchange for temporary benefits.Once the company fails to live up to the trust of investors,the credibility of the company’s survival and development will collapse,and the company’s survival and development will face many problems.In 2020,the capital market is undergoing reform and development under the new situation,and the promulgation of the new "Securities Law" is a positive response to the reform and development of the capital market under the new situation,which shows that the supervision of the securities market is gradually in the right position with the reform of the capital market,and there will be no place for fraud and violation.Therefore,it is of great theoretical and practical significance to analyze the means,identification and motivation of fraud combined with the industry background and the company’s operation and management,and put forward the corresponding suggestions on fraud prevention and governance.In this paper,taking the fraud of Selen Science&Technology as the main line,after in-depth analysis of the means,identification and motivation of the fraud of Selen Science&Technology,based on the greedy level,the opportunity level,the need level and the exposure level of the fraud GONE motivation theory,we put forward targeted governance suggestions for fraud prevention.This paper first summarizes the concept,motivation,means,identification and prevention of financial fraud through literature review,and then focuses on the greedy level,opportunity level,need level and exposure level of GONE motivation theory.In the case analysis,The first is the introduction of Selen Science&Technology and the review of the company’s fraud,the second is the in-depth analysis of the means of fraud,and through the abnormal financial indicators and non-financial indicators to identify the company’s fraud.Among them,the fraud methods used by Selen Science&Technology include: fictitious business to increase revenue and profit,Failure to disclose related party transactions and external guarantee as required.Thirdly,based on the theory of GONE motivation of fraud,combined with the industry background and the company’s actual operation and management,the paper analyzes the fraud motivation of Selen Science&Technology from four levels: greed level,opportunity level,need level and exposure level.Finally,combined with the industry background,company management,third-party audit institutions and government regulatory departments,the paper puts forward targeted fraud prevention and governance suggestions from four aspects: restraining greed,cutting off fraud opportunities,supporting benign demand and increasing fraud exposure.