Case Study On Financial Fraud Of Kang Pharmaceutical

Along with the rapid progress of the market,financial fraud methods also varied,is more and more on the fraud of financial statements,the affiliated party transactions fraud means is more difficult to find,so most of the listed company and the company's financial fraud by this means.Similar to the occurrence of these cases seriously affect the healthy and orderly development of capital market,shaken investor confidence in the company management,so that the state and the society public more and more attention to high incidence of cases of financial fraud.Financial fraud is mainly want to whitewash or fraud after the foreign financial statements provide false financial information to investors,in this kind of fraud way to guide the investors to make the wrong judgment to satisfy their own interests demand,serious damage to the healthy development of capital market.Now,the most important thing is how to found and contain financial fraud of listed companies,protect the interests of the investors and other stakeholders,stable fairly benign development of the capital market.Based on this,this article mainly under the background of financial fraud of listed companies,analyses the use of related party transactions occurred financial fraud behavior,through the integration of Chinese and foreign literature,to this article for financial fraud related theory research and the study,within the external means of combining in-depth analysis.Kang Zhi pharmaceutical from all levels: the financial statement data,analyze its characteristics and abnormal,to discover the fraud.Finally,according to the discussion of the results,Suggestions from various aspects,such as improve the quality of audit personnel and professional in order to improve the audit quality,establish an effective corporate governance structure of listed companies in order to improve the internal awareness,as well as the external regulators to strengthen the management of their own to curb the occurrence of fraud,which will curb the phenomenon of listed company of financial fraud.