Countermeasure And Research On Financial Fraud Of Huanrui Century Backdoor Listing

After entering the 21 st century,the Chinese government for the listed company’s management system standard,and constantly improve the system of internal control of listed companies,but the stock market still exist many problems,such as the board of supervisors of inaction,internal management is not strict,the company’s shareholding structure is unreasonable,the illegal punishment is weak,and so on,the problems hampering the enterprise financial information disclosure.In recent years,audit departments and the capital market sink to the bottom,greatly affecting the healthy development of the capital market.Financial frauds are getting newer,longer and bigger.Allowing this situation to continue will,over time,bring a devastating blow to the entire market.In 2019,the CSRC’s investigation into the financial fraud case of Huanrui Century shocked the public’s eyeballs,and the film and television company that was once very popular even broke huge thunder.The fraud lasted for four years and involved a total of 3 billion yuan.Taking huan rui century fraud case as an example,on the basis of finishing the research literature at home and abroad,combined with literature analysis and case analysis,based on the fraud triangle theory research framework,integrated huan rui century financial fraud background,motivation,fraud means and its influence,according to the cause of the problem put forward the constructive countermeasure and the suggestion.After studying the fraud cases of Huanrui,this paper found that the main fraudulent means included fictitious recovery of accounts receivable,reduction or delay of provision for bad debts,and illegal appropriation of funds of Huanrui Century by related parties and major shareholders.The reasons behind it are the pressure of performance commitment,the fierce industry competition environment,as well as the low cost of violation,and the management will be lucky and take risks to be investigated and punished for violation.According to these reasons,this paper puts forward some suggestions: the company should optimize its financial structure,increase financing channels,and improve cash flow.Strengthen the caution of "shell" companies and intermediary agencies and increase the punishment of fraud,strengthen the external audit system and call for the media to supervise the public opinion,give the media more freedom and guarantee space;And establish the good quality of the integrity and morality of the company’s management and enhance the construction of spiritual civilization within the company.After in-depth exploration and analysis of the motivation and reasons of Huanrui Century financial fraud,we need to summarize and reflect on the experience and lessons,so as to better avoid financial fraud and enhance financial security awareness.