Cash Flow Autologous Circulating Financial Fraud And Audit Response

2013, China’s financial fraud cases happened one after another, the Greenearth company, new earth company, Sky Technology, Wanfu Biotechnology company,purple Xin Pharmaceutical and other financial fraud. Fraud like an outbreak of thefinancial area in recent years. CPA as the last and most important capital marketgatekeepers, the auditing did not found fraud brought the market confidence greaternegative impact. Research on the characteristics of those financial fraud, identifyaudit response measures for improving audit quality, standardize China’s capitalmarket, an important and urgent meaning.In the2013financial fraud case, some of the fraud companies use cash flowautologous circulating financial fraud this more subtle malpractice, making itdifficult for CPA audits to identify fraud signals, or detect fraud facts. Therefore, thecash flow for autologous circulating financial fraud, the need for in-depth researchand analysis.This paper analyzes the cash flow of autologous circulating typical financialfraud-financial fraud Wanfu Biotechnology, from edmond through fraud, the resultsbefore and after correction of statements by contrast, the recovery of its financialmalpractice, and then analyzes the characteristics of financial fraud Finally, inresponse to the audit proposed audit strategy, risk assessment, risk response andindependent quality review and other projects.Innovation of this paper is: First, select a newer typical case; Second, do notfloat on the surface, but dig through the report data, and ultimately recover fraudchain; Third, refined, summed up this class of financial fraud principles; fourth, thelast systematic, targeted to individual business level proposed in response to theaudit, to provide practical guidance and reference for the CPA audit practice.