Identification And Prevention Of Financial Fraud In Enterprise IPO

The financial fraud of the enterprise IPO conveys false information to the investors who are at the disadvantage of information,they make the wrong investment decisions,and the interests suffer serious losses.IPO financial fraud has brought adverse effects on the healthy and orderly development of the securities market.It is very necessary to study the methods of identifying the financial fraud of IPO and put forward the management measures at the regulatory level.This article takes Xintai electric IPO financial fraud as a research object,which make financial fraud to defraud the qualification of securities issuance and was finally delisted.First of all,this article gives a brief introduction to the company's general situation and the two IPO process,and expounds the effects and consequences of its IPO financial fraud.Analyzing the company's internal and external environment,mining the causes and means of IPO's financial fraud,using financial and accounting knowledge to find signs of fraud,and put forward some thoughts and inspirations based on this case.The author hopes to summarize the general experience through introducing and analyzing the cases,and apply these methods to identify IPO financial fraud to other companies.This has positive significance for the prevention and control of IPO financial fraud.On the basis of the case of Xintai electric,combined with some previous cases of IPO financial fraud,and referring to the practice of mature market in foreign countries,this paper also puts forward some supervision and governance measures which are suitable for the for the development environment of the current securities market.These measures include four aspects:the investors should improve their financial analysis ability to strengthen self-protection and actively participate in the supervision of the listed enterprises;the intermediaries involved in IPO should strengthen their own strength and make clear their responsibilities;for the enterprises themselves,the internal control system should be practise well;Regulators should consider strict auditing and strict punishment for financial fraud,efforts should be made to reduce IPO's financial fraud and reduce its impact.