Case Study On Financial Fraud Of Gk Co.,Ltd.

With the development of capital market in our country more than 20 years,financial fraud issue has been there with time. There was small plates Green earth admitted financial fraud early, Wanfu shengke became the first GEM stocks. Each year, there are several listed companies on suspicion of financial fraud by the Commission investigation. The financial fraud of listed companies have a very bad influence. On the one hand, due to the increased risk of accounting, the accounting profession has been caught in a professional dilemma. The government supervision department has been damaged due to the increasing number of audit cases. On the other hand, the frequent occurrence of financial fraud has also caused many investors and creditors to question the authenticity and reliability of the enterprise financial report. So that the enterprise itself and accounting practitioners' professional image greatly damaged. Therefore, regulators, listed companies and certified public accountants should effectively prevent the occurrence of financial fraud, to avoid more serious economic losses imminently.In June 2015, GK Co., Ltd. alleged illegal securities, the Commission decided to initiate an investigation on the company. Since then, the company began to self related matters. This self inspection for up to six months, until the GK Co., Ltd.released a report on the self recognition of financial fraud in January 2016. Analysis of its financial fraud motives is helpful to the supervision department and other enterprises. It also has a positive meaning to the healthy development of the stock market.This paper uses financial accounting, financial management and other aspects of the theoretical knowledge, combining theory with practice, qualitative analysis combined with quantitative analysis method to study the case of financial fraud. The main content of this paper is divided into four parts: First of all, this paper starts with the research on the background and significance of the financial fraud cases of GK,and puts forward the necessity of this paper. Secondly, this paper briefly reviews and describes the financial fraud cases of GK Co., Ltd. Thirdly, the theory of financial fraud and financial fraud motivation are summarized. Then,combined with the actual situation of GK, this paper reveals financial fraud techniques used by GK, and analyzes the causes of the financial fraud based on the theory of fraud risk factors.Finally, through the analysis of the way and the motivation of financial fraud,rethinking the whole case to get the conclusion and enlightenment,and put forward management recommendations to the governance of financial fraud for the enterprise,accounting firms and supervision department. It is hoped that through the analysis of this paper and the countermeasures put forward, it can play a positive role in the development of other enterprises in the market, reduce the occurrence of financial fraud, and also play a positive role in maintaining the stability of the market environment.