Case Analysis And Enlightenment Of Financial Fraud Casese Of Xintai Based On GONE Theory

With steady development of domestic stock market,coming into the market has been a way for more and more companies to finance and gain profit.Financial report is the way for company to show business performance to users.It is also the main data source for CSRC to decide whether the company has market qualification or not.What's more,it is the necessary reference frame for wide investors to conduct investment.Therefore,financial counterfeit has been the common means for marketing companies because some companies want to collect more capital by reaching the marketing requirement of financial index or exaggerating business performance.Financial counterfeit not only badly damages the public image of marketing company,but also brings loss to wide investors.In one word,financial counterfeit makes obstacles for sustainable and healthy development of capital market.Therefore,it possesses practical significance to study the forgery motivation and its behavior,and discuss corresponding strategies and advice for sustainable and healthy development of national economy.Early,compared with China,foreign researchers conduct deeper research of financial counterfeit.Their theoretical achievements mainly focus on motivation aspect.There are four main motivation theories of financial report counterfeit,including iceberg theory,counterfeit triangle theory,GONE theory and risk factor theory,which lay the foundation of analysis on financial counterfeit.Among the four,GONE theory is a comprehensive counterfeit theory,which believes that a company tending to conduct financial counterfeit possesses four factors including greed,opportunity,need and exposure.Counterfeit will happen if the four factors coexist.Among the four factors,greed factor focuses on the greed desire of individual,agency and local government.Need factor draws conclusion of inducement of financial counterfeit from the perspective of company,understanding of the company need and long for reaching the goal.Opportunity and exposure factors explain the cause of financial counterfeit in two aspects of inside management and outside supervision of marketing company.Xintai Electric logged in GEM of Shenzhen exchange in 2014.However,one year later,the company was found that its marketing business performance was based on financial counterfeit.For successive many years,Xintai Electric exaggerated turnover and capital by means of peculating national asset,deliberately writing less raw materials and receiving bills fictively.Besides,Xintai Electric falsified financial data more than once.Based on GONE theory,this essay conducts analysis and explores causes on the case of Xintai forgery.Above all,this essay introduces the background of the company,the process of forgery and handling result.Then,based on GONE theory,this essay analyzes the forgery motivation of Xintai Electric with the analysis framework of greed factor,opportunity factor,need opportunity and exposure factor.At last,based on the comprehensive analysis of four factors of forgery GONE theory,this essay gets the enlightenment for prevention of financial counterfeit of marketing company.The forgery means of Xintai Electric is not brilliant but not be discovered,which is one attention point of this essay.The author thinks that the successive forgery of Xintai Electric not being exposed for many years is the responsibility of registered accountant and supervision institute.Therefore,this essay offers a series of strategies and advice both inside and outside of marketing company,especially for outside of marketing company,which offers strategies from two angles of registered accountant and social government.In the inside management of marketing company,the author offers corresponding strategies from four aspects including creating healthy enterprise cultural environment,strengthening independence of independent director and power of board of supervisors,strengthening optimizing inside auditing structure and strengthening enterprise competitiveness.In aspect of outside management of marketing company,registered accountants should enhance their moral quality and independence.They should deeply understand the financial situation of companies under audit,improve the validity of audit process and strengthen the awareness of practical investigation.From the perspective of social government,this essay offers four strategies including changing new standard of performance evaluation for government,establishing budget mechanism of revenue favor,increasing cost of violating laws and rules,and changing current audit structure relations in order to increase possibility of cheating exposure.