Financial Fraud And Identification Of Judicial Accounting In The Case Of Kelon Electronics

Identification of Judicial Accounting is a newly developing specialty at thebeginning of the21stcentury. Within the legal framework, the expert of judicialaccounting utilized the accounting skill to work. Financial fraud is one main form ofworld economic crimes in the21stcentury. As the cases of WorldTelecommunication, Enron, Kelon and Yinguangxia, people have to pay attention tothe financial frauds. Identification of Judicial Accounting is the main force ofdeveloping, controlling and preventing the financial frauds. The experts in judicialaccounting should master accounting detective skills and accounting identificationmethod with facility. The experts should explore a new way to broaden and serve ourinvestigative work, in order to reply to complex the economic situations.The research of judicial accounting started late compared to other countries.According to the literature data, most relative works record the identification ofjudicial accounting’s conception, method, purpose and meaning. The experts combinethe theory with practice, to reply more financial fraud cases. The paper used theempirical approach and normative method. Through researching the case of Kelon,the experts investigate and obtain evidence by using the identification of judicialaccounting. And then they induct the countermeasures of finding, collecting andobtaining the related evidences. On the base of researching the skill of judicial accounting, the experts draw the Kelon’s lesson, which the expert opinion of judicialaccounting in this case had no effects. The experts should pay attention to the law onjudicial accounting, ensuring the justice to the substance and the justice to theprocedure. At last, this paper improved the system of judicial accounting.The whole paper is divided to five parts, with a total36000words.Part one is an overview of the identification of judicial accounting, mainlycovering the concept of it and the comparison of forensic accounting and fraudauditing. And then part one analysis on the necessity and the feasibility of using theidentification of judicial accounting in financial frauds.Part two analyses on the fraudulent methods in this case, by reviewing theKelon’s case. It summarizes the reason causing the financial frauds, and points out thesituation of invalid expert opinions of judicial accounting.Part three analyses the investigative methods of judicial accounting, whichinvolves the three accusations in Kelon’s case. Then part three summarizes the skill ofjudicial accounting’s inspection.Part four and part five center on the existing problems about the system ofjudicial accounting, and finding the relevant solution to improve the judicialaccounting’s system.