Case Study On External Supervision Of Kangdexin’s Financial Fraud

Financial fraud and fraud have always been a persistent problem that troubles domestic and foreign capital markets.Especially in recent years,there has been a frequent occurrence of financial fraud cases in China.In 2019,there were multiple financial fraud cases that shocked A-shares.In addition to the "Shuangkang" financial fraud case,there were also cases of "scallops running away from home" in Zhangzidao and Fushun Special Steel falsely increasing fixed assets,which had a very negative impact.From a macro perspective,financial fraud can have a negative impact on the operation of the capital market and hinder the healthy development of the economy;From a micro perspective,enterprises can also be affected,not only by their own reputation being damaged,but also by risks such as delisting.At the same time,stakeholders and related third-party institutions can also be affected.Moreover,the means of financial fraud are more covert than traditional methods before,and the pressure on supervisory departments is also increasing.For this reason,the supervisory department has issued multiple legal systems to try to prevent financial fraud.However,in reality,incidents of financial fraud still occur from time to time and it is difficult to prevent them in advance.Therefore,it is urgent to prevent financial fraud from the perspective of external supervision.This case conducts relevant research based on the financial fraud case of Kangdexin.Kangdexin Company(hereinafter referred to as Kangdexin)was once a leading enterprise in the field of new materials in China.However,such a seemingly "promising" enterprise ultimately ended up being delisted,which cannot help but be thought-provoking.In addition,Kangde Xin’s ongoing large-scale financial fraud has not been detected by relevant regulatory agencies,which exposes relatively typical problems.Therefore,this case takes the financial fraud case of Kangdexin as the main thread,sorts out the origin and development of the case,and combines the fraud triangle theory to comprehensively analyze the causes and methods of Kangdexin’s financial fraud,and summarizes the serious impact of Kangdexin’s financial fraud.Provide relevant prevention suggestions based on the situation of the case.On the one hand,propose regulatory ideas based on new technologies;On the other hand,provide some suggestions for the external supervision agencies of enterprises.The purpose of this case is to draw more attention to financial fraud and provide some ideas for supervising and preventing financial fraud in listed companies.