A Case Study About Financial Fraud Of The Green-earth

Financial fraud has been a crisis that with the most frequency for listed companies. It could not only result in difficulties in the implementation of government’s economic regulation and control policy, negative impact on social morality, but also investors’financial loss, especially small and medium investors. Listed companies may be able to get huge benefit in the short term by financial fraud. But this kind of unethical behavior, financial fraud, is buried a huge land mines to the company, without knowing the exact time of exploding, which is unfavorable for the sustainable development of listed companies. Although a lot of listed companies issued many policy system to prevent financial fraud, but from the perspective of a frequent fraud, these so-called "policy system" does not play a role.The case of the Green-earth’s financial fraud is not a recent event, but the Green-earth is the first case to go public in the Small and Medium Enterprise Board, the Green-earth’s scale of fraud and fraud means are huge, the research is necessary. There are several reasons of financial fraud,"Money" is the most fundamental reason. It is human nature to pursue interests, this is the perceptual factors, it’s hard to change. So this article emphatically from the corporate governance structure, internal supervision and external supervision, these a few respects with green earth company fraud cases to discuss how to curb financial fraud. Corporate governance structure mainly from the aspects of the board of directors and board of supervisors, equity structure are analyzed; Internal supervision is analyzed mainly from the company’s internal audit level; And external supervision mainly from the laws and regulations, the CSRC regulation, government regulation are analyzed. According to the content of the analysis put forward how to perfect the corporate governance structure, strengthening the internal and external supervision countermeasures and Suggestions are put forward.