Research On The Preventive Mechanism Of Internal Control Against Financial Fraud

In recent years,financial fraud cases of many listed companies have been frequently exposed.In addition,the number and scale of companies in our country are increasing rapidly,all senior managers are eager to report good news and beautiful financial results to satisfy investors and drive stock prices up.And the financial fraud cases of some international big companies,the amount of money involved,the number of people,so that people’s awareness of financial fraud has been constantly refreshed.Investors are paying more and more attention to the authenticity of financial data,and how to manage enterprises to prevent fraud has become a hot topic of concern.Some studies show that the frequency of financial fraud events is closely related to the failure of internal control,and scientific internal control can effectively prevent the occurrence of fraud.With the increasing perfection of the listed company’s system,the internal control system is also in the improvement of the company’s system.In comparison,China’s internal control system started late and is facing many problems.Therefore,based on the mature and advanced internal control system of western developed countries,we need to conduct deeper research and set up new internal control system.Therefore,this thesis takes the financial fraud incident of KM company as an example and chooses to study the financial fraud incident from the perspective of internal control.This article mainly adopts the literature analysis method and case method,two methods of financial fraud phenomenon study,through literature at home and abroad,based on the perspective of internal control,and made a detailed analysis the reasons for fraud,also illustrates the internal control system from the aspects of theoretical knowledge of financial fraud prevention effect,provides a certain support to solve problems in case.In this thesis,by focusing on KM company fraud case,during the study made a comprehensive analysis of case,including the KM of the profile of the company,case happened and the means of fraud,etc.,for KM to financial fraud after done in-depth research of the internal control reasons,from the perspective of internal control for KM to guard against financial fraud put forward recommendations,to join the effective factors of internal control,Reduce the situation of financial fraud in KM company and help the company to better prevent the occurrence of financial fraud.The conclusion of this thesis is that effective internal control can prevent the occurrence of financial fraud.KM Company can establish a scientific and complete internal control system to prevent the occurrence of financial fraud and make the company run steadily and steadily.Based on the research of the fraud financial events,at the same time,according to the whole situation of KM company case,to draw the internal control system to establish the important benefits of is can promote our country listed company to establish the same risk management system,to reduce the financial fraud occurs,so as to promote the healthy development of social enterprises,protect the legitimate rights and interests of small and medium-sized investors,build a fresh air wind economic environment.