A Survey On Financial Fraud Issue Of Wanjiang Logistics

The stock market occupies a large share of the whole financial market share,which takes an important role of the capital market circulation in China.The national unified trading platform was founded in the 1990 s which takes the creation of the two major trading markets-Shanghai Stock Exchange and Shenzhen Stock Exchange as milestone.The second-board market and other platforms were born and exacerbated the size of the capital market transactions and trading frequency.Capital market experienced in the climax and trough,experienced the bull market and the city today,all respects have been ripe up day by day.However,there are many listed companies in capital market financial fraud,which not only the interests of investors suffered losses and investors lose confidence in the capital market,but also hinder the healthy development of capital markets.For more in-depth fraud analysis,I selected Wanjiang logistics.co as a case analysis.Wanjiang logistics company was listed in Shanghai Stock Exchange in 2003.On the other hand,the scale and absolute and relative amount of this case make it worth studying.According to the penalty records,the main means of financial fraud of Wanjiang logistics is fictitious business cycle,which is a common means of financial fraud in recent years,that is,making related party transactions through third-party companies(in this case the Pengs)so as to achieve the purpose of manipulating the company's performance.By comparison of the fake financial statements and historical data,the financial fraud means may be subtle,but deliberate modification of anything is a violation of the rules of nature.Financial fraud is no exception.Financial fraud destroyed the original balance of three statements,breaking the relationship between the financial statements.Therefore,by analyzing the balance sheet,income statement and cash flow statement,we come to the preliminary signs of financial fraud.By comparing the financial data before and after the financial fraud.Wanjiang logistics fraud after the financial situation is better than the actual situation,giving investors in its gradual expansion and the growth of the illusion.On the other hand,it was concluded that the company can't take into account all financial indicators,thus some financial indicators has been raised,but there are also deteriorating ones.In general,financial fraud can really beautify the operating results and the business scale.In order to find the motivation and ensure whether the aim of financial fraud is to conceal the problem of intended firm,we compared the fake and real financial report.According to the financial analysis results,it suffered a serious decline in 2012.The false financial report is related to the internal control of the company and the failure of the internal control.After analyzing the financial data of Wanjiang logistics,the paper analyzed the internal control of Wanjiang logistics according to the five elements of China's internal control framework.On this basis,the paper summarized financial fraud motive three factors,including pressure,opportunity,excuse.The conclusion of this paper is that the occurrence of corrupt behavior of listed companies can't be attributed solely to the main body of fraud,fraud is not a thing that can be done by itself,the securities market regulators and policy makers and accounting firms have corresponding responsibilities,combined with case analysis Put forward the inspiration to prevent fraud,including the company's own level of prevention and control measures,standardize the management of accounting firms and improve the recognition of financial fraud.