KDX Financial Fraud Case Study

In the first half of 2019,the company's financial fraud was continuously exposed,including the large pharmaceutical company Kangmei's 30 billion cash "error adjustment",Kangdexin's false increase of 11.9 billion profit,and Zoneco "scallops-leaving 3.0",and Fushun special steel's continuous false increase of fixed assets and inventories.These frauding behaviors became more and more severe,and means constantly innovating.In terms of research theories,many scholars at home and abroad have put forward many valuable theories such as Iceberg theory,Triangle theory,GONE theory and Theory of fraud risk factors.However,the financial fraud in the capital market is to continue despite repeated prohibition.That hides the true operating situation of the company and makes it difficult to reflect the true and fair information in terms of external disclosure.Therefore,this thesis selects Kangdexin,which reported inflated profits of 11.9 billion in the first half of 2019,as a case of study.Because of its shocking means and amount,the cash management cooperation agreement signed with the bank of Beijing is new in the capital market.Therefore,this thesis deeply reviews and analyzes the whole process and means,summarizes the causes and consequences of fraud,and proposes the trinity governance system.The regulatory authorities will also establish a three-dimensional accountability system.After sorting out the literatures related to fraud,this thesis found that the research contents of fraud were relatively comprehensive.Besides,the motivation,means and governance of fraud were paid more attention to.The relevant theoretical research was also expounded from the pressure of fraud motivation,opportunity,exposure risk and other aspects,and a relatively mature theoretical framework was put forward.Therefore,this thesis focuses on the fraud behavior,analyzes the fraud process and motivation,analyzes the economic consequences of the fraud behavior through the multi-party status quo.Then puts forward the rectification suggestions and opinions,providing reference for future theoretical and practical research.Full text altogether includes the following six parts:the first part is the introduction,the first one is the background and significance of topics.After that,settle the related literature at home and abroad fraud motivation,means and management three big categories,get the relevant system.On the basis of established in this thesis,the research method of confirm the innovation point of the article research,and put forward the technology roadmap of articles.The second part is the theoretical basis of financial fraud,which firstly defines the concept of financial fraud.Then elaborates the more mature theories of financial fraud,establishes the theoretical basis of this thesis.Finally summarizes the common means of fraud for the analysis of this thesis.The third part is the case introduction of Kangdexin financial fraud,mainly starting from the introduction of Kangdexin company and the process of fraud events.From the company's brief introduction of business conditions to fraud detection,case review to the final notice of administrative penalty advance notice,the formation of the whole process,to provide a factual basis for the following analysis.The fourth part is the key part of this thesis,which mainly analyzes the financial fraud cases of Kangdexin,mainly from the motivation,means,characteristics and economic consequences of fraud.In the fifth part,policy Suggestions are put forward to prevent,identify and control fraud,so as to form a governance system integrating internal governance,audit institutions and regulatory institutions.The sixth part is the summary of the full text.This thesis has timeliness in case selection,follows the development of the situation.Through the analysis of a large number of data,excavates the deep-seated motivation and means of fraud.Based on this,a more perfect three-dimensional prevention system is put forward.Besides,a three-dimensional accountability system is innovatively put forward in terms of supervision,so as to promote the formation of a comprehensive supervision system.