Case Study On Financial Fraud Of Shanghai Yin Science&technology Co.,Ltd

In recent years,with the rapid growth of China’s economy,the capital market is also increasingly prosperous.At the same time,financial fraud of listed enterprises also happens frequently.Financial fraud not only seriously hinders the normal development of the capital market,but also brings huge economic losses to investors.Therefore,in order to regulate the normal order of the capital market and safeguard the legitimate rights and interests of investors,it is of practical significance to study financial fraud.In this paper,Shanghai Yin are selected as sample cases to study financial fraud events for two reasons.First of all,the industry and the main business of Long Garden and Eagle are very important.Manufacturing industry is one of the pillar industries of China’s economy,which will have a great impact on the national economy.As a high-tech enterprise,Shanghai Yin is one of the few CNC cutting equipment manufacturers with complete intellectual property rights and large-scale production in China,whose products occupy more than 70% of the market in the sewing equipment industry.The second is the Shanghai Yin financial fraud related fraud as many as 11,the total income of the false increase of about 360 million yuan,accounting for about one-third of the real operating revenue in the same period.Its financial fraud scale is large,the means is many,the consequence is serious,makes the long garden and the eagle case is representative.This paper uses the method of combining theoretical analysis and case analysis.In the theoretical analysis part,it uses the fraud triangle theory to analyze the causes of financial fraud of Shanghai Yin,and analyzes the causes of financial fraud in Shanghai Yin respectively from the perspectives of pressure,opportunity and excuse.In terms of pressure,long garden and eagle face the pressure of m&a performance commitment and the pressure of market competition,in terms of opportunities,long garden and an eagle in the internal control system is not perfect,lack of regulatory oversight,low penalties and auditors not diligently environment,all of these factors for garden and eagle creates opportunities for fraud long;From the perspective of excuses,the management of Shanghai Yin is lack of professional quality,which leads to their self-rationalization of financial fraud.Based on the facts,this paper discusses the enlightenment to prevent financial fraud from three aspects: enterprises,audit institutions and relevant regulatory agencies,and puts forward suggestions one by one according to the motivation.For the enterprise,it is necessary to perfect the internal control system,enhance the moral quality of the management,and strengthen the construction of enterprise culture.For audit institutions,auditors should pay attention to audit quality and improve their own ability;For regulators,it is necessary to improve the content of corporate information disclosure and increase the punishment for financial fraud..