Statistical Research On Financial Fraud Applied In Listed Company’s Financial Statement

In recent years, domestic listed companies witnessed a number offinancial fraud cases, resulting in a very bad impact on society. There isendless typical case of Min-Board market history, such as Sinovel,Guhan, Yngreen. Especially Second-board Market, who has never been asignificant fraud since October2009on board, recently appeared ashocking fraud case–Sunry Group.China securities regulatory commission publicly punished manylisted companies who violate the laws and regulations. In this paper,wesummarize126cases involved in financial fraud according to thepunished data from2003to2012.In this paper, we use the description andclassification methods to statistical analysis bases types, means,geographical distribution, evolution means, and fraud time.This paper firstly studies nearly a decade of financial statements oflisted companies in fraud cases, and finds the characteristics of financialfraud, the trend of corruption means. Then it gives the correspondingcountermeasures to reduce fraud and safeguard the interests of investors, safeguard the smooth operation of securities markets.On the basis of statistical analysis, this paper summarizes the usualChinese listed companies’ fraud practices, research listed companies’financial corrupt motive. Based on these analyzes, this paper attempts tofind the deep-seated reasons about Chinese stock market behavior offinancial fraud, such as institutional factors, auditing factors, and thusgives the corresponding audit measures and improve the system’srecommendations.