Research On Financial Fraud Detection And Prevention Of Yijian

With the continuous development of the social economy and the emergence of new economy and new business formats,the means of financial fraud continue to evolve and upgrade,enterprises begin to deliberately use new formats to cover up fraud,such as supply chain finance and commercial factoring have gradually become new "vests" for fraud.Using of supply chain finance business,new or complex financial instruments to counterfeit is concealing,so it’s worthy to put some attention in the new trends of financial fraud.This paper mainly adopts the case study method,taking Yijian shares as the research object.Firstly this paper sorts out the research results of Chinese and foreign scholars on the formation of financial fraud,identification methods and preventive countermeasures.Secondly,by systematically combing the financial fraud incidents of Yijian shares,this paper introduces its new transactional fraud methods under the supply chain finance business,and deeply analyzes the reasons for fraud from the three perspectives: motivation,opportunity and excuse.Then,the five-dimensional financial fraud identification model is used to identify the financial fraud of Yijian shares from the financial and non-financial levels;Finally,on the basis of identifying the financial fraud of Yijian shares,corresponding suggestions are put forward for preventing financial fraud from the perspective of external audit and supervision.Through the study,it is found that Yijian shares have the characteristics including the gross profit margin of factoring business is higher than that of the industry,the abnormal provision for bad debts in factoring business,abnormal behavior of controlling shareholders and senior management,frequent inquiry letters from regulator,abnormal characteristics of customers and suppliers,higher customer concentration than the industry,abnormal linkage between revenue or profit with related indicators,and inconsistent interest income with the scale of factoring business.By making full use of industrial and commercial information to identify hidden related parties,focusing on verifying the commercial substance of factoring business,accelerating the digital transformation of auditing,and paying attention to the early warning information provided by regulatory inquiry letters,etc.,to improve the quality of external audit;Increase the intensity of joint supervision and punishment,establish and improve laws and regulations related to equity pledges,improve laws and regulations related to commercial factoring business,improve the information disclosure system for key customers,increase the cost of fraud,and promote the standardized operation of the securities market.