Research On Financial Fraud Of Yu Diamond Company Based On The Theory Of Fraud Risk Factor

In recent years,the financial fraud incidents of listed companies occur frequently,whose complexity,system and long-term nature have seriously damaged the interests of investors and creditors,and have also attracted the attention of the regulatory authorities and the capital market.In 2020,yu diamond performance "face" was pointed out to be suspected of major financial fraud.After the CSRC investigation,yu diamond financial fraud careful thinking,strong intention,to avoid the supervision of the external auditors,the company controls a number of senior management personnel conspired to fraud,led to found the possibility of financial fraud is relatively low,but due to relatively wide,is one of the new "securities law" since the implementation of the punishment object.Therefore,this paper choose yu diamond as the research object,using the literature analysis,case analysis and comparative analysis,the full text,a total of six parts,based on the theory of fraud risk factor of yu diamond fraud analysis,to summarize the fraud,find out the motivation,and put forward Suggestions to prevent financial fraud,in order to better for small and medium-sized investors,listed companies to prevent financial fraud.Through the study and analysis,Discovery:(1)Yudiamond mainly conducts financial fraud through fictitious procurement transactions,fictitious inventory increase,fictitious equipment transformation business,fictitious fixed assets,fictitious non-current assets through procurement business,fictitious non-current assets through engineering construction business,and fictitious construction projects under construction,Weakened the resource allocation function of the market,Also misleading to the investors,To timize relevant agencies,Cause investors’ distrust of listed companies;(2)Analyze the causes of financial fraud based on moral character,motivation,opportunity,possibility of fraud discovery,nature and degree of punishment after fraud,It mainly includes the weak legal awareness of the actual controller,the recession of the overall economic environment,and the failure of diligent external audit,The company’s low performance,low profits,ineffective independent directors and internal control failure,And the cost of punishment after fraud is not high;(3)Prevent the financial fraud of the listed companies,By improving the internal prevention mechanism,expanding the domestic and foreign markets,improving the quality of external audit,increasing the punishment of financial fraud,and establishing the investor claim mechanism,Focusing on the identification of frequent fraud in monetary funds,receivables and other fields in recent years,Find out problems as soon as possible and protect the rights and interests of investors in the capital market.