Study On Financial Fraud Audit Case Of Kanghua Agriculture

With the rapid development of China’s securities market,the stumbling block of financial fraud has attracted the attention of the masses.In order to obtain the real situation of the enterprise,the demand of report users for auditing is increasing day by day.The accounting firm occupies a pivotal position in the whole securities market.Financial statement users pay more and more attention to the audit report issued by the auditor,but China’s recent financial fraud caused by audit failure events followed.Certified public accountants,playing the role of "economic police",are no longer as credible as before.This not only caused immeasurable losses to the users of financial statements in China,but also caused certain damage to the healthy development of China’s securities market.Therefore,how to effectively identify and prevent the occurrence of financial fraud is crucial to the audit industry.The basic theories adopted in this paper are principal-agent theory and fraud triangle theory.Firstly,this paper summarizes the relevant theories and empirical research results of domestic and foreign scholars on the causes,identification and governance of financial fraud.Secondly,analyzes the guarantee of guangxi agriculture co.,LTD.,financial fraud related situation,explore certified public accountants audit to guarantee agricultural why did not identify the financial fraud,in carries on the analysis and put forward corresponding countermeasures,in order to inspire identification of enterprise financial fraud,avoid the generation of audit failure.Listed companies have different motives for financial fraud,a variety of techniques,scale is amazing.Based on the guarantee of guangxi agriculture co.,LTD.,financial fraud by the study found that fraud auditing should not be limited by regular audit method,deal with enterprise implementation of unconventional method,will audit procedures enriched and strengthen the quality of audit,to avoid audit failure,to maintain the healthy development of securities market.