Case Study Of Liaoning Zhenlong Specialties Company Limited Financial Fraud

Accounting information is an important value indicator of an enterprise.However,with the development of capital market,corporate financial fraud has emerged in a variety of ways.From the early American Enron events,Yinguang Xia and Lantian Company in China,to the recent Xin Tai Electrical Company and Tian Jin magnetic card and other serious fraud cases,numerous enterprises to continue to raise funds in the market,in order to increase the company's market value and the stock price,constantly break the legal restricted area,disclose false financial information,not only make the enterprises suffer the fatal punishment,but also harm the interests of investors,disrupt the investment environment of the market,and hinder the development of the economy.Financial fraud is the use of deception to obtain improper or intentional acts of illegal economic interests.In order to clean up the financial fraud and the bad market,the authorities keep issuing laws,perfecting rules,and the wind of financial fraud is still unforbidden.Therefore,research on the causes of financial fraud and prevention countermeasures is of great practical significance.In this paper,the case analysis method is adopted to analyze the fraud cases of Liaoning Zhenlong production co.LTD.It is a famous export enterprise of agricultural products processing in China.The enterprise mainly deals with the processing and sales of dried fruits,nuts and seeds.The sales target is mainly in the international market,and the market shares and sales profit level are in the top position in China.From 2013 to 2015,the company has submitted a prospectus for four times,which is intended to be listed on the SZSE.In 2015,it was still investigated by the securities and futures commission when it withdrew its IPO application,and found that its existence was punished by the fraud facts such as inflated income,fictitious profit of inventory,virtual reduction of operating costs,falsification of product processing,etc.,and related intermediaries were not excluded.The financial fraud case of Zhenlong has brought economic loss to the enterprise and also hurt the reputation of the enterprise.The severe punishment imposed by the CSRC on Zhenlong's production has demonstrated the determination of market supervision and a profound lesson for many enterprises with fluke mentality.Only by stepping on the ground operation is the right way out,and the profit by means of fraud cannot escape the legal sanction.Based on the theory of fraud triangle,this paper analyzes the causes of financial frauds from the three factors such as pressure,opportunity and excuse,and puts forward corresponding countermeasures and Suggestions to listed companies from three perspectives of reducing financial fraud pressure,reducing financial fraud opportunities and preventing financial fraud.The research enlightenment includes not only Suggestions on the internal governance of enterprises and the improvement of audit quality of certified public accountants,but also thoughts on market environment regulation and supervision.At the same time,this paper focuses on the analysis of the problems existing in agricultural production enterprises based on the causes of the fraud and the characteristics of the industry.Therefore,the research results of this paper can also provide references for the prevention and treatment of financial fraud in agricultural listed companies.