Xintai Electric Company Financial Fraud Case Study

With the rapid development of China's economy,the market economy has been further developed and improved,and the capital market has ushered in unprecedented prosperity.However,due to various factors,financial fraud incidents of listed companies have also occurred frequently.The disclosure of these financial fraud scandals has seriously affected the development of listed companies,dampened the confidence of market investors,disrupted the market order,and even allowed companies to embark on the road to bankruptcy.Financial fraud has a very bad impact on companies,the market,and investors.As the financial disclosure of the incident revealed that the accounting firm that served it also exposed the phenomenon of audit failure,the accounting firm was thus punished by administrative or legal punishment,and faced with huge fines,but also for legal liability.It can be seen that in-depth analysis of financial fraud and audit failure behavior has important theoretical and practical significance.This paper chooses summer electrical fraud research.Firstly,the background of financial fraud,the meaning of the topic,the framework of ideas,and the writing method are preliminarily expounded.Then the relevant theoretical literatures at home and abroad are reviewed,which provides theoretical basis for the writing of this thesis.Secondly,the related concepts are analyzed,including financial fraud,audit failure and other concepts,motivation theory and so on.Thirdly,the specific process of the summer electrical financial fraud case was comprehensively sorted out,and its causes,means,accounting audit failure reasons and various responsibilities were analyzed.Finally,combined with the specific situation of the enterprise,the prevention and treatment measures are proposed,including: first,optimizing the internal governance structure,second,establishing and improving the internal control system,third,improving the corporate governance structure,fourth,establishing an early warning mechanism,and fifth,improving audit independence,the sixth is to increase the level of information disclosure,and the seventh is to strengthen supervision.