Recognition And Response To Financial Fraud Risk Based On Business Process

The Report on the 20 th Congress pointed out that we should accelerate the construction of a new pattern of development,focus on promoting high-quality development,better coordinate development and security,and promote the overall improvement of economic performance.The security of the capital market is related to the overall situation of the country,and the audit plays a pivotal role in the process of promoting the steady progress of the giant ship of the capital market.However,in recent years,there have been frequent lightning incidents of listed companies,such as Kangmei Pharmaceutical,Kangdexin,Yihua Life,etc.The financial fraud of these enterprises is long-term,systematic,huge amount of money involved,and widely involved.With the development of information technology,the means of financial fraud also from the original simple and crude statement items "makeup",to now with the external capital circulation,the use of monetary funds,fixed assets,projects under construction and other projects that are not easy to be examined and identified to carry out financial fraud.Through the promulgation and implementation of the new securities law regulations,and the court cases of suspected financial fraud in recent years,the state has increased the punishment of financial fraud by enterprises,and also imposed double punishment on accounting firms and auditors.Increstringent penalties and more imperceptible financial fraud pose new challenges for auditors.In the face of high pressure environment and complex situation,how to control the quality of financial information is a topic of common concern in the accounting industry.This paper deeply studies the selected topics deeply through literature research method,case study method and comparative research method.First of all,we collected and sorted out the classic literature at home and abroad,and sorted out the relevant documents of business process,financial fraud,financial fraud identification,and audit risks.Secondly,it defines the related concepts of financial fraud,fund verification and extension inspection,and lays the theoretical foundation for the accounting information system theory and audit information theory.Build the financial fraud identification and response framework based on the business process again.Select the typical financial fraud enterprise disclosed by China Securities Regulatory Commission for analysis,Combing the business process characteristics of Sino-Crystal Diamond Company business activities,As the logical starting point for identifying financial fraud,By finding the analysis point of business process,the financial situation of enterprises from two dimensions of production and marketing,personnel and property,From the quantitative perspective of the abnormal analysis of the relevant financial indicators to identify the risk points of enterprise financial fraud,Combined with the professional judgment of CPA and the understanding of the enterprise and the industry from the dimension of business essence,Finally,from the perspective of "personnel information flow,capital flow and financial flow" of the whole process of fraud audit and key audit,This paper puts forward suggestions on how to make audit risk countermeasures to financial fraud.The conclusion of this paper: First,the traditional audit cycle mode is limited to the fraud of systematic and external circulation of its own funds.Second,auditors use the financial fraud identification and response framework based on business process to grasp the three-dimensional logical analysis,so that they can better grasp the situation of the enterprise,have more rigorous reasoning logic,clearer identification path,and clearer the directivity of audit risk response.Third,the financial fraud will reduce the value of the enterprise,and there will certainly be behaviors that do not conform to the commercial essence in the value chain.The financial fraud identification and response framework based on the business process can identify and deal with the long-term systematic fraud of Sino-Crystal Diamond Company.This paper hopes that through the above analysis,we can provide auditors and stakeholders with an idea of financial fraud identification and purify the capital market.