Financial Fraud Study Of Boyuan Investment In Internet+ Era

"The guidance on promotion of Internet+ actions”,which officially released in July 2015 by the state council,opened the door of Internet +Times,meanwhile,it also lead to the unprecedented opportunities for the development and changes in accounting industry.Under this backgrounds,financial fraud issue should be more concerned by firms,government and investors.Given the variety in financial fraud methods in big data era,Bo yuan investment co.,LTD became the first involuntary delisting in China according to the new delisting rules and the stock listing rules of Shanghai exchange.Therefore,this paper discuss the prediction of financial fraud and the prevention in advance,using Bo yuan investment co.,LTD as the typical case of financial fraud in Internet+ era,in order to give some suggestions on accounting information distortion and management.Under the backgrounds of Internet+ era,this paper analyze the annual financial reports and information disclosure in recent years by using financial ratio analysis based on financial fraud triangle theory,GONE and fraud risk factors theory.According to the existing literature,7 representative financial indexes are selected from aspects on cashability,asset management,solvency,profitability and cash flow to build Gray Incidence Model.After running the DPS,the results show that Bo yuan reveals the minimum fraud risk in 2011 and the maximum in 2014.Policy implications were proposed based on the analysis results.Governments and policy makers should carry out detailed and specific rules,and raise the cost of fraud.Supervision department audit institution should reinforce the supervision management and improve internal governance,and pay more attention to the first line of internal control on prevention of fraud and other related financial control measures.