A Case Study Of Financial Fraud In Sunlight

In recent years,China’s securities market has developed rapidly.The information disclosed by listed companies is an important basis for investors to make investment decisions.In particular,financial information is not only the focus of investors but also the focus of securities regulators.However,the financial fraud incidents of listed companies have occurred one after another,and in recent years,they have been “squatting”.The financial fraud of listed companies masks the company’s real operating performance and misleads the choices of investors,which not only damages the legitimate rights and interests of investors,but also disrupts the order of the entire securities market.What’s more,although listed companies have obtained “benefits” in the short term,in the long run,the internal corporate governance problems exposed by financial fraud of listed companies and the stock price decline caused by financial fraud exposure and investor litigation compensation are all Long-term development has serious adverse effects.Judging from the fraud cases that have occurred in the capital market in recent years,the financial fraud of listed companies is mostly the systematic financial fraud of the management,and the financial fraud means are “out of the picture”,which is intriguing and highly concealed.Intermediaries and securities regulators must continuously improve their business capabilities to identify the “changing and versatile”financial fraud practices of listed companies.However,in order to curb the occurrence of financial fraud from the source,it is imperative to analyze the deep-seated motives of financial fraud in listed companies and improve the financial fraud prevention strategy of listed companies.Taking financial fraud in Sunlight as an example,this paper analyses the background,means,identification,consequences,causes and Countermeasures of financial fraud in listed companies.Firstly,the background of financial fraud cases in Sunlight is introduced,including the general situation of Sunlight Company,the relationship between related parties and the fact of financial fraud violations.Secondly,it deeply analyses the fraudulent means of fictitious film and television copyright transfer business and fictitious government subsidy income,and combined with the financial fraud qualitative identification method,the paperanalyzes the “signs” of financial fraud by analyzing the financial doubts of Sunlight.Then,it traces the consequences of financial fraud in Sunlight,and makes an analysis from three aspects: the deterioration of business conditions,the disruption of the order of the securities market,and the triggering of investor litigation disputes.Thirdly,combining the theory of fraud risk factors,this paper makes a deep analysis of the causes of financial fraud in Sunlight.One is that Sunlight has an incentive to cheat in order to prevent it from being dealt with in particular and to maintain its good image,mainly because of its loss of performance.Secondly,Sunlight is mainly due to the distorted moral character of management,which damages the corporate culture of honest management.Thirdly,Sunlight fraudulent opportunities are mainly due to the failure of internal control,the failure of independent directors,the inaction of internal oversight bodies,and the covert payment of miscellaneous funds related to the enterprise.Fourthly,Sunlight is mainly due to the systematic collusion of management and weak supervision of accounting firms,which leads to the low possibility of fraud detection.Fifthly,because of the low cost of financial fraud in the capital market and the imperfection of relevant laws and regulations,Sunlight has carried out fraud on the basis of weighing the advantages and disadvantages.Finally,based on the theory of fraud risk factors and the five elements of fraud risk factors,the paper gives the enlightenment of Sunlight ’s case to prevent financial fraud of listed companies.