China Huishan Dairy Holdings Company Limited Fraud Case Analyse

With the continuous development of China's capital market and the gradual improvement of relevant laws and regulations,the external supervision level has been improved greatly,and the operating environment of China's enterprises has also been observably improved.However,the accounting fraud has shown a trend of increasing recently,which seriously affects the healthy development of China's capital market.Therefore,accounting fraud study remains as an important task for us to further improve the environment of capital market and regulate the fair competition order of enterprises.Huishan Dairy cases of financial fraud is a typical case happened in 2017,It caused great harm and bad influence to society and investors,and the problems it reflects such as corporate governance,corporate management,internal and external supervision are very typical among listed companies.This article began with Huishan Dairy's financial fraud case and complete related research analysis: The paper introduced the background and the significance of study,besides it also reviewed the former research and explained the structure,method,and content in this paper.This paper followed the whole case and introduced the financial situation,the internal governance structure and other related information of Huishan.It also followed the situation of company after the fraud.Based on the research of Huishan Dairy's notes payable,accounts payable,net cash flow,main business cost,main business income and other critical data,combined with some non-financial information,this paper achieved the restore of the fraud process of Huishan Dairy.Then through the application of the theory of fraud risk factors,article analyzed Huishan Dairy's fraud motivation and finally summarized warning suggestion for the enterprise,and from the fraud motivation revealed by enterprise management problems,article listed some advice for companies which have similar problems of enterprise operation and management.In addition,the paper gives some countermeasures and suggestion from the perspective of auditing and government supervision.