Analysis Of Financial Fraud Governance In Kang Zhi Pharmaceutical

Since twenty-first Century,Chinese economic development,progress,deepening reform,capital markets mature,more and more enterprises to use the capital market IPO and refinancing,has become an important way for its survival and development.However,financial fraud has long been a difficult problem for all sides of the world.The same is true in China,as are cases of illegal practices and financial fraud.The company's illegal activities will damage the reputation of the company and damage the interests of the shareholders.Financial fraud is a deliberate act of an enterprise in order to increase its own interests,violate the accounting standards and make false financial information.It is the behavior of the management to harm other stakeholders in order to realize their own interests.The company boldly and openly challenge the law,manipulate financial statements through various means,in order to maximize the interests of the purpose,the underlying reasons behind this phenomenon deserve our discussion.Fraud triangle theory points out that if a company is to commit fraud,it must conform to three factors,namely,pressure,opportunity and excuse.If any of these factors are missing,there is no way to achieve fraud.Therefore,we should start from the three factors of the theory of fraud,identification,analysis and management for financial fraud,which can reduce the incidence of fraud,resulting in suppression of financial fraud in the source.In this paper,we take the motivation,methods and measures of financial fraud in the past,and propose the research methods and ideas,and build the framework of this paper.Combining case study with normative research,using logical method,combined with the comprehensive situation of Listed Companies in China,the paper takes Kang Zhi pharmaceutical company as an example to discuss.To analyze the motivation that Kang Zhi pharmaceutical fraudulent financial reporting form,and combined with the method of corporate governance,put forward constructive comments and suggestions to other companies to learn from.At the same time,in the case of asymmetric information,it also ensures the rights and interests of the majority of investors,and promotes the normal operation of China's capital market.It has important practical significance.This paper introduces the background and significance of financial reporting fraud,also pointed out that the financial problems of listed companies and the capital market is closely related to the financial fraud problems affecting China's economic and social long-term,stable and healthy development,therefore,must be solved.In order to make a thorough study of the problem,this paper sums up and summarizes the previous research results from the motivation,identification and governance of financial fraud.Secondly,on the basis of the existing research,and combining with the actual situation of the main means of financial fraud,the fraud triangle theory of pressure,opportunity,excuse three factors to analyze the causes and solving measures.Third,to understand the situation of the company operating Kang Zhi pharmaceutical,analyzes the manifestation of financial fraud and the specific means for inflated profits,less expenses,early recognition of revenue,false trading,related party transaction fraud.Fourth,based on the financial fraud case of Kang Zhi pharmaceutical,we use the theory of fraud triangle to analyze,and then get the deep motivation of the financial fraud.Finally,in the current economic context,from the ease of financial fraud,reduce pressure and eliminate the pharmaceutical opportunity excuse Kang Zhi pharmaceutical fraud of the three aspects to explore the solution of financial fraud management,including a sound internal control system,the establishment of the company internal audit system and improve the company's ownership structure,strengthen the company's information disclosure system,improve the company's incentive system,so that the company has a long-term development in the superiority of the internal environment;strengthening the role of intermediaries,not only to increase the responsibility of the sponsor institutions continued supervision and punishment,and should be strict supervision and investor complaints system,but also need to establish the integrity of the files and the sponsor no system;through the improvement of listed company approval and post regulatory system and increase the financial fraud cost and improve IPO Exit mechanism and so on,strengthen the supervision system,to ensure the stable development of the capital market.