Case Study Of Z Company's Financial Fraud

Financial fraud is the focus point by kinds of countries all over the world.Financial fraud is accompanied by changes of the capital market,never gone away.No matter whether the development of economy is mature,financial fraud is inevitable.From the British economy into a predicament of the south sea company fraud to the bankruptcy of Enron Corporation what is the world's largest energy company,from Orient electronics to Shanghai WuMao,confirm this saying.Company as the major seeking excess returnings and the cost of the fraud which is far lower than the profit the companies get,is a deep reason of fraud happening many times.The bankruptcy of Enron warns the stock market of the United States,then the strict the sarbanes-oxley act what was enacted by the federal government,is used to prevent and reduce the happening of financial fraud.Because of an earlier origin of western capital market,its development is positive.Though China's capital market started late,also its development is not falling behind,showing up,presenting a rising trend.Good capital market has a series of disadvantages,and although the goverment enacts many policies and regulations to safeguard the order of the securities market.In order to get as much money as,many companies usually achieve purpose by financial fraud.The major cause of financial fraud of listed company is based on the chaotic governance structure.In order to reduce the company's financial fraud,standardize corporate governance becomes very important.In this paper,we analysis Z company financial fraud by literature review method,case study.And find out the deep reasons of the financial fraud,based on theory of GONE.The company's fraud motivation,recognition methods,and guardurd against financial fraud are based on the perspective of corporate govemance.In order to give some advice to the company's management,the government,some audit suggestions,the company's financial fraud research will become very important.In theory,we can fully understand and grasp the most advanced research of the financial fraud and corporate governance and theoretical knowledge.we identify these practical problems of listed companies very well and the deeper research.At the practical aspect,we can find some finnancial problems of the listed company,and then put forward some corresponding suggestions and make some specific improvements on the base of the problem.