Application Of Forensic Accounting In Financial Fraud Management Of Gem Listed Companies

In recent years,financial fraud in China’s securities market is common,especially in gem listed companies.Relevant studies and practices at home and abroad show that forensic accounting is an effective means to control financial fraud.It is not only conducive to promoting the benign development of China’s securities market,but also can expand the business scope of accounting firms and meet the international standards.GEEYA TECHNOLOGY CO.,LTD is a very representative gem listed company fraud case,involving a wide range of subjects.This paper summarizes the characteristics and the main fraud motivation of the GEM market,and uses the risk factor theory analysis to find that the main motivation of GEEYA TECHNOLOGY fraud is the listing of money and the need to avoid delisting,reduce the triple competition risk demand,merger and acquisition failure,improper related party transactions,etc.Through the analysis of basic statement and special ratio,it is found that the main fraudulent means of gold industry technology include setting up two sets of accounts for fictitious business transactions,fabricating the advance payment for projects,transferring capital benefits by means of acquisition by major shareholders,financing expenses in fictitious installment payment and excessive write-off of long-term receivables,etc.At the same time,using Benford’s law and Benesch’s test model,the financial data of GEEYA TECHNOLOGY were tested,and the signs of financial fraud and surplus manipulation were found,and put forward the process design of the whole process of controlling fraud.Finally,in view of the prevention and governance of financial fraud in gem listed companies,it is suggested to establish fraud prevention mechanism inside listed companies,optimize corporate governance structure,and add a forensic accounting department under the Board of supervisors.Accounting firms expand forensic accounting business,regularly conduct fraud risk assessment on listed companies;China Securities Regulatory Commission has formulated stricter supervision policies,introduced forensic accounting data analysis method in the double-random review,and improved the system of selecting audit institutions.