A Case Study On Financial Fake Of Xintai Electric IPO

With the rapid economic development in China,our country securities market has experienced almost thirty years of rapid development.China's capital market has made remarkable achievements.However,from the establishment of China's securities market up to now,the problem of financial fraud of listed companies appears constantly.The prevention of financial fraud in listed companies has always been a hot issue in the capital market that has drawn the public's attention.The development of China's securities market in recent decades broke a large number of financial fraud cases,such as Lantian shares,silver Guangxia,Wan Fu Sheng Ke and so on.On July 8,2016,CSRC announced that Xintai Electric Initiation of compulsory market withdrawal procedure due to the IPO fraud.Less than two years after its launch,Xintai Electric was forced to withdraw from the market and became the first listed company in China to be forced out of the market due to the issuance of fraud.As one of the five elements of internal control of the internal control environment,is the foundation of implementing internal control,internal control environment can strengthen or weaken the enterprise all kinds of policies,the impact.Every year,a large number of listed companies are exposed due to financial fraud.The occurrence of financial fraud has seriously hindered the economic development of our country.Financial fraud can directly lead to the decline of stock prices of companies,causing huge losses to investors,and will hinder the healthy development of capital markets,reducing its credibility,affecting the effective allocation of resources and so on.The occurrence of so many corporate financial fraud has triggered a deep reflection on the issue of accounting fraud.Therefore,how to effectively prevent financial fraud and improve the efficiency of the capital market is a big problem to be solved urgently.This paper combines the domestic and international literature on financial fraud,collated the research background of accounting fraud,clarified the significance and method of the research,mainly used the literature research method and case analysis method.The motivation of financial fraud is expounded.According to the analysis of motivation,it is concluded that corporate fraud is mainly an internal factor.Then,combined with Xintai Electric IPO fraud cases,a detailed analysis of its financial counterfeiting practices,and then in-depth and detailed analysis of Xintai Electric's financial fraud conditions,including the corporate governance structure is not perfect,the internal structure of the agency and the distribution of rights and responsibilities If so desired,the role of internal audit is limited andthe role of internal audit is limited.At the end of this article,some suggestions are put forward for the problems and defects in Xintai Electric's case.