Case Study On Financial Fraud Of Bo Yuan Investment Co.,Ltd

With the development of economic globalization,the world economy presents a thriving scene. However, some phenomenon has also appeared behind this prosperity which ignore their social responsibility and use the accounting fra.ud for profit.Companies in our country faces a lot of temptation under the environment encouraged and developed of our country. Some social liability can tell clearly direction and develop steadily following the professional ethics. However, some companies have financial fraud violating laws and regulations and finding incorrect methods. This phenomenon had a terrible impact on China's stock market and the CPA profession, shaked the confidence of investors, and enabled investors to take greater risks and reduce the investment desire. It is not only affect in accounting and auditing area, but also impact the use of fund in stock market and impede the development of harmonious society.In the development of China's capital market over the past 20 years, financial fraud become more and more and has never stopped because of various reasons, such as Yinguangxia and Wanfushengke. Bo Yuan became the first company delisted in the stock market because they are lack of disclos'ing important information in 2016. It has very terrible influence, which seriously affects the attitude and confidence of investors in the stock market.Compared. with previous financial fraud, the financial fraud of Boyuan is difficult to find and become various. It is helpful for warming related departments to analyze the causes and identify financial fraud behavior of the Boyuan in the whole process. It has a great significance for the healthy and real development of the stock market.In this paper, the whole process of the financial fraud case is introduced in detail through financial fraud related notion and fraud triangle theory. Next the financial statements and financial indicators of Bo Yuan are detailed analyzed by using knowledge of accounting and financial management in recent years and the methods irnvolved in financial fraud are summarized, including how to increase bank transactions, disclosure of financial information seriously and falsely. Then we analyze the cause of the event deeply Bo Yuan. Finally, in order to create a good investment environment for the majority of investors,companies,intermediaries and regulators should make a reflection and take corresponding measures and countermeasures according to the Boyuan.