Analysis On The Causes And Countermeasures Of Financial Fraud In Kangmei Pharmaceutical

In recent years,many financial fraud cases have been reported in listed companies,which will not only cause property losses of investors,but also undermine people's trust in the capital market,vio late the principle of fairness and justice,and cause serious negative impact on the sustainable development of the national economy.For in enterprise,the income from financial fraud is inconsistent with the current operating conditions of the company,which will be exposed sooner or later.When such negative news comes to light,the company's image soon collapses,causing direct economic losses.In recent years,China Securities Regulatory Commission and other relevant regulatory authorities issued a series of financial fraud prevention and supervision policies.However,the role of these policies in regulation and governance is not significant.The shocking "mysterious disappearance" of 30 billion yuan of Kangmei Pharmaceutical has drawn intense attention from regulators and investors,and zhonghan Zhujiang Accounting firm,which audited its financial reports for 18 consecutive years,is to blame.In order to prevent audit failure,we should pay attention to the scope and risk of audit and be familiar with the motivation and methods of financial fraud.As the financial fraud of listed companies evolves with the continuous improvement of the capital market,it is of great practical significance to study the financial fraud of listed companies and discuss the prevention measures.Based on the financial fraud GONE theory,internal control theory as the foundation,through carding sig pharmaceutical fraud before and after the event,to identify its suspicion of fraud,dig deep reasons of financial fraud,regulation of loopholes,and combined with the case study of several similar,Suggestions are given to prevent and reduce the financial fraud,makes every effort to make contributions to the long-term development of China's capital market.