Study On Financial Statement Fraud Of Listed Company Based On Fraud Triangle Theory

The Shanghai Stock Exchange opened in December 19,1990 marks the beginning of the development of Chinese capital market,after nearly 30 years,Chinese capital market has made continuous breakthrough.It plays an important role in the adjustment of economic structure,promoting enterprise reform and inspiring the innovation of science and technology.The development of securities market brings opportunities,while at the same time,the news on listed companies' financial statement fraud problem and there are various methods to fraud are reported every day.Investors make wrong investment decisions because of those fraudulent financial statement information,consequently,suffer huge economic losses.The financial statement fraud conducted by those listed companies disrupts the order of the capital markets seriously.It has a beneficial effect for investors to identify those financial statement fraud behaviors made by listed companies for making appropriate investment decisions to avoid economic losses.Considering from the long term,solving the financial statement fraud problem via finding out the deep reason of financial statement fraud can contribute to the health development of Chinese securities market.This paper is based on the financial statement fraud matter which shocked Ministry of Foreign Affairs of the People's Republic of China,it involved in 1billion yuan that conducted by Jiangsu Yabaite Technology Co.,Ltd..Jiangsu Yabaite Technology Co.,Ltd.inflated its revenue and profit by made up projects and trade in order to meet the profit amount committed in its blackdoor listing.Ministry of Foreign Affairs of the People's Republic of China involved in Because of its fictional overseas projects,fictitious export trade and the suspicious in forging a Pakistan politician's letter,The securities market is also shocked because of the huge fraud amount and the wide effect range which even led Ministry of Foreign Affairs of the People's Republic of China paid attention to this case.This paper first introduces the related literature and theory of financial statement fraud and then describes the financial statement fraud behavior conducted by Jiangsu Yabaite Technology Co.,Ltd..This paper analyzes the financial statement fraud matter conducted by Jiangsu Yabaite Technology Co.,Ltd.from the pressure perspective,opportunity perspective and rationalization of financial statement fraud perspective based on the fraud triangle theory.Finally provides solutions from the perspective of the pressure,opportunity and rationalization separately.This paper analyzes the financial statement fraud behavior conducted by Jiangsu Yabaite Technology Co.,Ltd.,the financial statement fraud features of other Chinese listed Companies may also be known according to the case of Jiangsu Yabaite Technology Co.,Ltd.,finally find out the methods to prevent financial statement fraud behavior to promote Chinese securities market develop healthily.