Analysis On Financial Fraud Cases Of Wanfu And Its Prevention

Since the establishment of China’s capital market in December 1990,financial fraud of listed companies constantly occur.In recent years,this trend has become more and more serious.Financial fraud violates the principle of good faith,brings huge losses to investors and has a negative impact on society,has become a cancer to harm the order of market economy.So we analysis of the means and methods of financial fraud of companies,study the motivation and conditions.find out reasonable and effective preventive measures which is of great practical significance for enterprises to develop themselves,to protect the interests of investors and to promote the sustainable development of China’s securities market.Wanfu as the the start up board financial fraud first stock,in this financial fraud case,not only the existence of their own crimes,but also involving accounting firms,sponsor agencies and otther intermediary agencies,involving a wide range,and its long duration of fraud,the amount of money.systematic.So in this paper,to analyze Wanfu financial fraud case,this article use a combination of theory and practice and combines qualitative analysis methods.Based on the review of the relevant theories of financial fraud and the definition of the theory and the motivation theory,first of all,this article understands the basic situation of Wanfu company and its financial fraud,and analysises of the means of financial fraud in Wanfu branch,such as inflated profits,inflated assets,concealing major events.And use of accounting theory and financial management theory to analyze and summarize the impact of financial fraud on financial statements and some financial indicators.Secondly,using the four factor theory,the causes and conditions of financial fraud in Wanfu are analyzed from four dimensions:greed,opportunity,need and exposure.Thirdly,basedon Wanfu financial fraud case,draw lessons and propose strategies to prevent financial fraud of listed companies from four dimensions:greed,opportunity,need and exposure,such as improving the moral environment,reducing the chance of fraud,reducing bad demand and increasing punishment,etc.Finally,through the analysis of Wanfu financial fraud means to alert the relevant investors,stucdy financial fraud motives and conditions,put forward the corresponding prevention strategies,to create a good environnment for the investors,and promote the healthy development of Chinese securities market.