Case Study On Financial Fraud Of Xintai Electric Company

Since the development of China's capital market, the problem of financial fraud has never stopped, even though China's financial market management and supervision system is constantly improving, there are some companies to take risks for the interests of risk. Financial fraud not only disrupted the financial market order, but also undermined the interests of investors, so that our regulatory authorities, external audit institutions are facing severe challenges. In the past,there are the Yinguangxia, to the Lvdadi and Wanfushengke, In 2016,the most eye-catching financial fraud case is Xin Tai Electric undoubtedly.Xintai electrical financial fraud incident is significant, from the IPO to the subsequent financial statements are financial fraud. IPO fraud and later financial statements continue to counterfeit,the impact is very bad. The Xintai Electric is the first compulsory delisting shares in China's two securities marketand GEM. It can be said Xin Tai electrical and financial fraud is a Milepost in China's capital marketand the delisting system. Therefore, it is of great significance to study the current situation, motivation and related countermeasures of financial fraud in listed companies.In this paper, the study of Xintai electrical fraud is based on the combination of literature research and case study. The first part introduces the research background, the research purpose and the significance, the research method and the content. Secondly, the case description part introduces the organization structure, industry and financial situation of Xintai Electric, then combs the whole process of Xintai electrical financial fraud from inside to outside The Case analysis part of the theory of financial fraud related to the analysis of Xintai Electrical and financial fraud means and reasons, the interests of the drive, the failure of internal control, accounting staff lack of professional ethics and intermediary agencies dereliction of duty. In the end, the revelation and countermeasure part puts forward the countermeasure of preventing and controlling the financial fraud of the listed company, including that improve the corporate honesty consciousness, play the role of internal control well, strengthen the construction of the professional ethics of the accounting personnel and strengthen the management of the intermediary supervision.