A Study On Financial Fraud Case Of Wanfu Shengke And The Countermeasures

The development of China’s capital market has been 20 years history, financial fraud occurred frequently, which fiercely discouraged investors, ruined the normal order of the marketing economy and broke the fairness of the finance market. After Shanxi Zhendong Pharmaceutical Co.,Ltd, Wanfu Shengke branch “the deep processing of rice stocks” sit on the agricultural product processing industry. As the second condemned listed companies on GEM from SZSE. Wanfu shengke is know as the first stock of financial fraud on GEM. The financial fraud of Wanfu Shengke has involved in a wide range, not only involves itself, but also the accounting firm, the sponsor institution and so on. Add to the complex financial fraud measures and the huge amount of money, It has certain representative. After a brief description about the concept of financial fraud and the fraud motivation, we can identify the financial fraud measures, which can help alert the relevant investor, It also has an irreplaceable role in maintaining the healthy development of the securities market.This paper adopts the research method of combining theory with practice and combining qualitataive analysis with quantitative analysis. First, describe the Wanfu Shengke financial fraud in detail, and then, using the knowledge of accounting and financial management knowledge to summarize and calculate 2008-2012 financial accounting report, financial indicators of the company. Then make a reasonable analysis.summarize the methods involved in financial fraud and the influence of financial indicators. The next part of the analysis of the events leading to the motives and conduct in-depth analysis of the major internal and external factors into its own problems in two parts. Finally,According to the case of fraud, the relevant agencies like intermediary organ and regulators have to think about this important event,and intermediaries to take appropriate measures to resolve and improve, to create a healthful investment environment for the majority of investors.