Financial Fraud-Based Research On The Internal Control Deficiencies Recognition And Management Of Wanfu Biotechnology Agricultural Dev Co.,Ltd

As part of managerial process,internal control plays an important role in balancing the authority and responsibility between sections,harmonizing relationship between employer and employee,increasing utilization efficiency of organization's resources and assuring achievement of an organization's objectives.It has now acquired more attention.An organization may find it hard to have their internal control system designed and work perfectly.One should allow an internal control system to have some defects.But when it goes to core businesses or reach to a certain amount,those deficiencies not only make the internal control system ineffective but also bring risks for the organization to attain objectives.So we should face the problem and take initiative instead of fudging on it.Here is the reality,when deviation has been detected(companies being punished for their wrongdoing,receiving modified audit opinion,being caught up in lawsuits,etc.)tests will no longer be the most suitable way to get to know about the existing internal control deficiencies.Indication recognition method makes the whole thing more efficient and intuitive and remedies we later offer shall be more efficacious.Imagine that we have a relatively comprehensive knowledge of typical indications which help us recognize internal control deficiencies within all industries,management research will come into a new age,so as the economic development.In this paper,I chose one of the most famous cases that happened in recent years.Wanfu Biotechnology Agricultural Dev Co.,Ltd.once became notorious because of financial fraud.Listed on GEM,this company contributes in domestic economic increase along with other private enterprises.Since the investigation is over,punishment,criticizes,and other potential loss,Wanfu Biotechnology has already gotten everything it deserves for disregarding laws and regulations,it is just the time to have an overall review of the case.In this paper,the researcher set up a rigorous framework for the detected deficiencies in Wanfu Biotechnology's internal control system through its fraud case.I used accounting level and company level to classify the deficiencies,and that is first proposed by Moody's.In this way,the analysis will be more specific and in-depth,and we can also put forward more targeted solutions.Hopefully this paper can be referential for both the future development for Wanfu Biotechnology and management research.