Research On Prevention Of Financial Fraud

In recent years,China's securities market has been greatly developed,and at the same time it has encountered many challenges.The repeated prohibition of financial fraud is not only the biggest challenge currently encountered in China's securities market.The fraudulent and fraudulent financial fraud incidents such as Yinguangxia and the Green Earth are typical and serious cases that have occurred in recent years in China.It is precisely because these financial fraud incidents have seriously affected the stability and development of China's securities market.Firms engage in financial fraud through various means because of different motivations.These financial frauds are usually more complicated and hidden and difficult to find by users of financial statements.In real life,the actual measures to prevent and control financial fraud are few and the effect is not good.W company is a listed company of China's GEM.It uses the financial fraud to falsify the company's financial statements,so as to achieve the conditions for listing and finally the success of the listing.This is a typical example of China's listing through financial fraud.Through analyzing and studying the causes of financial fraud in financial fraud cases of W Company and the means of financial fraud,it provides a direction for more effective identification of corporate financial fraud.In addition,in this notorious financial fraud incident,we found that government departments,intermediaries,and enterprises did not play their due role in preventing corporate financial fraud.This article analyzes the deficiencies of the parties in this financial fraud incident,and suggests that all parties should take more effective measures to prevent financial frauds from happening in the future.This article through a variety of research methods and combined with fraud triangle theory,financial fraud prevention theory,financial fraud means theory to W company's financial fraud events to conduct a more thorough and thorough understanding and analysis.Analyzed the motivation of W company's financial fraud and the main fraudulent methods used.Through the research we found that analyzing the abnormal situation of the company's profitability index,operating ability index,growth ability and other indicators will more effectively identify the company's financial fraud.Through analysis,we have found that companies can reduce the occurrence of financial fraud by optimizing the ownership structure and ensuring that internal supervision organizations maintain their independence.The mosteffective way for companies to prevent financial frauds is to make full use of a well-designed internal control system.The audit quality and integrity level of the intermediary structure also play a crucial role in preventing financial fraud.The assurance of the authenticity and reliability of audit evidence is an important basis for avoiding audit failure.Government departments also need to strengthen the supervision of corporate financial fraud through the establishment and improvement of different systems.