Study On IPO Financial Fraud Identification And Prevention Of Xintai Electric

With the rapid development of China’s capital market,more and more enterprises choose the IPO road.The huge wealth effect brought by the listing also makes some companies try to impact the IPO through financial fraud,which not only disturbs the healthy development of the securities market.It has also caused countless small and medium investors to lose high profits,which has affected people’s confidence in the market.Therefore,according to the basic logic of corporate IPO financial fraud and fraud,finding more effective identification and countermeasures is of great significance to protect the interests of small and medium investors and maintain the healthy and stable development of the securities market and the entire economic environment.Combining theory with practice,this paper will focus the main line of finding,analyzing and solving the problem.Based on the existing theoretical basis,the characteristics,motivations,means,and prevention of current IPO financial fraud are collated and analyzed,so as to propose a specific method for identifying IPO financial fraud.Secondly,from the perspective of reality,Xintai Electric IPO financial fraud incident is selected for specific analysis.The fraudulent means is used as the basis for identification.The combination of financial information and non-financial information,other key information and three types of identification methods for obtaining evidence from third parties are used.The company conducts specific analysis.Finally,it proposes preventive measures for Xintai Electric’s case and the development status of the securities market.It is divided into case-based research and general application,and is divided into internal prevention.Enterprises should enhance their legal and regulatory awareness and financial literacy,optimize the shareholding structure,and strengthen the audit committee.The role of independent directors and the board of supervisors;external prevention,audit institutions should reform the system and enhance the professionalism of employees;the CSRC should increase the punishment of fraud,continue to promote the implementation of the registration system,improve the system of entering the market,delisting and advance payment,strictly Auditing;investors should examine enterprises in many aspects,strengthen the study of professional knowledge,establish special rights protection agencies and other aspects;comprehensive prevention,citing blockchain technology toestablish effective preventive measures for IPO financial fraud.