| After nearly 30 years of development,China’s capital market and securities market has a certain scale,which provides the development opportunity for market economy and platform,but behind the high speed of the enterprise in order to satisfy the CSRC into the capital market and keep strict requirements and illegal financial fraud,it also makes the financial fraud cases occurred frequently in the past nearly 20 years.Financial fraud is a serious illegal behavior,extremely unfavorable to the development of the enterprise itself,and seriously disrupted the order of the stock market and the distribution of economic interests,by making false prosperity to mislead the public investment choice,lose the trust of the company,and illegal social money,affect the stable development of our economy.Therefore,it is of great significance to explore the causes of financial fraud and to seek corresponding governance and prevention countermeasures to standardize the financial management of companies,protect the interests of investors and promote the sustainable and healthy development of China’s capital market.Kangmei Pharmaceutical Co.,Ltd.is a well-known traditional Chinese medicine enterprise located in Guangdong Province,which has been called "white horse stock" in the industry.However,the CSRC’s strict requirements on the financial situation of listed companies and the rectification and innovation of the pharmaceutical industry have brought great delisting pressure for Kangmei Pharmaceutical.Company initially adopt diversified development strategy,but instead let the financial nervous of capital turnover is more difficult,but kang mei pharmaceutical management in order to continue to seek their own interests maximization eventually adopt the way of financial fraud to try to survive,the fraud diversity,amount is huge,brought huge hidden trouble to the economic market,eventually in 2019,the company was the CSRC and take the initiative to kang changed its name to ST Kang Mei,confirmed its fraud.This article refers to the relevant studies of domestic and foreign scholars,In response to the current situation of repeated financial fraud,Using the case analysis method,financial information comparative analysis and other research methods,Combined with the actual cases of —— Kangmei Pharmaceutical financial fraud event,It is concluded that the main fraud means of Kangmei Pharmaceutical include: falsely increasing operating income,forging accounting vouchers,using improper related party transactions to fictitious profits,etc.,And expounds the harm and impact of financial fraud for Kangmei Pharmaceutical,investors,company executives and participants and audit institutions,Then,according to the GONE theory of greed,opportunity,demand and exposure,the motivation of financial fraud were analyzed in detail,The main ones are: excessive profits through investment in real estate,the defects of internal control,the dereliction of duty of Zhengzhong Pearl River Accounting Firm,the demand for working capital,and the low possibility of fraud exposure,And from the G,O,N,E these four aspects of the financial fraud governance measures and enlightenment,The main measures include: strengthening the personal cultivation of the management,preventing the utilitarianism of the audit work,strengthening the quality control and supervision of accounting firms,improving the internal control system of enterprises,strengthening the awareness of financial risk assessment,strengthening the punishment of the regulatory departments and other measures.Finally,I hope that the study of this paper can promote financial fraud prevention and governance related theory and the development of management practice,let the company executives more effectively regulate the behavior of the enterprise,and improve themselves and staff professional quality,make audit institutions can realize the importance of audit responsibility and the independence of audit work,to promote the capital market health,reasonable operation to do their part. |
