Study On Motivation And Countermeasures Of Financial Fraud From The Perspective Of Internal Control

The economy of our country is development fastly,the listed companies number is growing day by day,but the problems of financial fraud frequently occur in listed companies.Last several years,whether it is Zhangzidao,where scallops have run away,or Kangdexin and Kangmei Pharmaceutical,There have a much of swindle of finance in this one,the impact of these financial fraud incidents is very bad.The reason is the imperfect internal control system and process and the financial crisis within the enterprise.How to avoid or minimize the occurrence of financial fraud in an enterprise is a key issue considered by today’s enterprises in the process of operation.This paper uses the method of literature research and case analysis to conduct an in-depth analysis of financial fraud events based on the five elements of internal control.Selecting EASTERN GOLD JADE as the case of this article,it provides a new way of thinking in the aspect of financial fraud,studies the motivation of its financial fraud,and draws out the importance of internal control to financial fraud.Mainly include: 1.Summarizing various literatures,sorting out relevant research theories,and comprehensively interpreting internal control based on the current situation at home and abroad;2.Comparing relevant financial data of EASTERN GOLD JADE,identifying fraud and analyzing financial fraud motives;3.,Analyze the causes of EASTERN GOLD JADE ’s financial fraud from five perspectives: weak internal control environment,lack of risk prevention awareness,formalized internal control process,poor information communication,and weak supervision.4.Analyze the negative impact of financial fraud on the enterprise based on the specific angle of internal control.Through the research of this paper,it can be dope out that if the control system is more scientific and comprehensive,it will help to play a very good role in restraining financial fraud.Perfecting its internal control can not only restrain the probability to the swindle of finance,and that push forward the development sustainable of the enterprise.Through the research of this paper,we can highlight the importance of internal control factors to the development of enterprises,strengthen the optimization and improvement of internal control in enterprises,so as to reduce the occurrence of financial fraud,and promote the development of my country’s market economy while improving the level of enterprise managers.