Case Study On The Financial Fraud In YD Company

China's securities market has been developed for more than 20 years.With the development of our country's economy,the laws and regulations of the market have been continuously improved.Financial statements is the most important information that investors rely on to judge the company.As an enterprise,its financial report also directly affects the financing of enterprises.For many reasons,financial fraud is on the rise.Manipulate the financial report extremely affect the rational allocation of the whole market which cause investors to make false and unreasonable judgments,resulting in great losses.To ensure the healthy and sustainable development of the whole securities market and to maintain market order,the financial fraud must be paid more attention and get effective management.Because of the small scale of the new third board market,it's ignored by the Securities Regulatory Commission for a long time.This article selects financial fraud case of YD company,analyzes the whole financial fraud incident of YD company.As another major fraud case after Shenxianyuan company,this case is a representative example in both amount and industry.This paper firstly starts from the background of topic selection and the significance of researching,exploring the ideas and methods of research.Secondly,further describe for the fraud case,analysis of YD financial position and review the hole case.Then analysis the concept and method of financial fraud and the GONE theory of financial fraud.Mainly counterfeiting method is to increase the main business income and fictitious related party transactions.The reasons for the financial fraud are analyzed,and the reasons behind the financial fraud are excavated from the management of the company.Finally the suggestions and strategies are introduced to manage the listed financial fraud of YD company.In the future,we can make some precautions against similar incidents.As long as we have perfect preventive measures and adopt reasonable measures,the security of our country's securities market can be improved.