Research On The Means,Motivation And Governance Of Financial Fraud In Kangde Xin

With the improvement of China's economic level and the rapid development of domestic capital market,the number and scale of listed companies are increasing.However,due to the relative backwardness of China's capital market and imperfect regulatory system,financial fraud has occurred frequently in recent years,and the means of fraud are endless.Obviously,the impact of financial fraud on individuals,enterprises and society is enormous.On the one hand,it harms the vital interests of investors,on the other hand,it disturbs the normal order of the capital market.Therefore,it is the key to study how to deal with financial fraud and find the source of financial fraud.This paper selects Kangde Xin's financial fraud as a case study,based on the theory of fraud risk factors and other relevant literature to discuss.Firstly,it briefly describes Kangde Xin's company profile,and expounds the causes and consequences of its financial fraud events.Secondly,it identifies Kangde Xin's financial fraud in advance,and finds out the double high deposit and loan,gross profit rate,accounts receivable At the same time,the abnormal financial indicators such as net cash ratio,reasonable identification and query of external information,excessive pledge of equity and internal control defects and other internal information are carried out;then,the measures taken by Kangde Xin's financial fraud are analyzed emphatically,which are mainly to inflate profits by adjusting income and cost,including concealing related transactions and guarantees,and failing to truthfully disclose raised funds Secondly,based on the theory of fraud risk factors,the causes of financial fraud of Kangde Xin are divided into individual risk factors and general risk factors,among which the causes are low professional ethics of managers,performance pressure of Kangde Xin,capital crisis of controlling shareholders and delisting risk of enterprises In the risk factors,the concentration of equity,the failure of internal control,the disadvantage of intermediary supervision and the low cost of fraud are the causes.Finally,this paper puts forward some countermeasures and suggestions on the causes of fraud,including improving the quality of professional ethics of managers,formulating appropriate business strategies,dispersing equity and so on.