Perspective Kelon Financial Trap

The case of Kelon is very complicated, involved in financial reportgloss, capital operation, exclusive director and audit responsibility. Theanalysis of this paper concentrates on the financial fraud and Guchujun'scapital operation.The paper consists of 3 parts.The first part is the introduction of Kelon background. This partincludes Kelon's develop history and how it goes into the hand of Guchuju.The second part is the study of Kelon case. First of all, we analyze thedetail of Kelon's financial fraud in the period of Guchujun controlling thecorporate and before his entering into this company. Moreover, we study thecapital operation of Guchujun on the capital market, revealing the truepurpose for Guchujun making industry combination.The third part is the lesson of Kelon case. This part discusses theregulation in the capital market, the responsibility of accounting firms, andthe regulation of exclusive director.