Research On Financial Fraud Of Kanghua Agricultural Company

As the primary industry in our country,agriculture is the basic industry that supports the construction and development of the national economy.Its industrialization is about all aspects of national economy and the people's livelihood.Agricultural listed companies are an indispensable link in agricultural industrialization.However,in recent years,There are an endless stream of financial fraud cases in agricultural listed companies.Among the 13 financial fraud companies that have been penalized for disclosure in 2016 by banks such as Bank-Guangxia,Lantian,Xintiandi,and Greenland,there are actually four listed agricultural companies.Why Agricultural listed companies in succession in recent years,the outbreak of financial fraud case? It is very necessary to conduct in-depth theoretical research and practical analysis.Based on the case of Kang Hua Agricultural Financial Incidents reported and investigated by the CSRC in 2016,this paper analyzes the fraud of Kang Hua Agriculture one by one based on the fraud trigonometry theory,the information disclosure theory and the enterprise internal control theory,and draws the following conclusions:(1)The root cause of Kang Hua's financial fraud in agriculture is composed of three factors: pressure,opportunity and self-rationalization(ie,excuse).The pressure mainly comes from the huge benefit of financial fraud and the asymmetric cheaper cost of cheating.The opportunities mainly come from Kanghua agricultural company's internal control flaws;excuses mainly from the external audit agency responsible for the audit,not diligent and responsible.(2)The main means of financial malpractice in Kanghua Agriculture is through:(1)In the balance sheet,the two assets of bank deposits and accounts receivable are inflated;(2)The operating income is inflated in the income statement.The financial fraud means nothing special:(1)For enterprises,the internal control system does not "control" live and abide,not only the problem of weak internal control,but the actual controller does not have any internal control awareness,just want to gain benefits through counterfeiting;External intermediaries,auditing or auditing found no fraud,on the one hand the stock of agricultural enterprises is rather special,can not be spot checks,can not be fully verified biological assets,inventory value verification there is a lot of room for adjustment,and biological assets of The dependence of the naturalenvironment is stronger and the latter is also more influential.It is often difficult for intermediaries to distinguish the reason for the change in the inventory of the Company;on the other hand,the intermediaries lack the professional competence and diligence in auditing or auditing the agricultural enterprises Professionalism.(3)According to how to prevent the financial malpractice of Kang Hua Agricultural Company in the future,the measures to strengthen internal control of enterprises,supervision of intermediary service agencies,government supervision and social supervision are put forward.Through the cooperation of the four aspects,Measures to effectively manage the company's financial fraud.In a word,through the typical case analysis method,this paper summarizes the reasons,the means and the countermeasures of the financial malpractice of Kanghua Agricultural Company,in order to provide the practitioners and supervisors of agricultural enterprises with constructive suggestions to prevent and control financial fraud.