Research On Financial Fraud And Governance Of Kangmei Pharmaceutical Based On Fraud Risk Factor Theory

In recent years,cases of financial fraud in the capital market at home and abroad have been frequently exposed.China's listed companies have been repeatedly banned from cheating the public through financial fraud,and even become increasingly severe.From 2011 to 2019,the number of listed companies investigated for suspected financial fraud basically increased year by year,and a large number were investigated for non-standard disclosure of information.This kind of phenomenon makes the investor's confidence to the capital market suffer greatly,also causes the market economy order to be destroyed,even to the social economy benign movement and the development to become the hindrance.Therefore,prevention and management of financial fraud become the top priority in the economic field.Through accurate identification of various financial fraud means and insight into the motivation of enterprises to conduct fraud,it is important and necessary to put forward useful Suggestions for the prevention and management of financial fraud of listed companies.This paper combines theoretical analysis with practical cases,applies the fraud risk factor theory,analyzes the current far-reaching financial fraud case of KangMei pharmaceutical co.,LTD.,explores the means and causes behind the financial fraud of enterprises,and proposes targeted measures to prevent and control financial fraud for reference.Firstly,this paper introduces KangMei pharmaceutical briefly.Secondly,according to the China securities regulatory commission administrative punishment decision letter clearly stated the fact that KangMei pharmaceutical fraud,comb KangMei pharmaceutical fraud case the whole process;Thirdly,the financial fraud means of KangMei pharmaceutical are analyzed in detail,and it is pointed out that KangMei pharmaceutical mainly conducts financial fraud by means of falsely increasing monetary funds,falsely increasing fixed assets,falsely increasing operating income and operating profit.Thirdly,according to the risk factor theory,the causes offinancial fraud of KangMei pharmaceutical were analyzed in detail from the perspectives of fraud motivation,moral deficiency,potential fraud opportunities,probability of being discovered and degree of punishment.Fourthly,the author puts forward countermeasures against the financial fraud of KangMei pharmaceutical,including improving the internal governance structure of KangMei pharmaceutical,strengthening the audit of KangMei pharmaceutical by certified public accountants and strengthening the influence of external environment on KangMei pharmaceutical.Finally,from the three aspects of building a good legal environment,improving the quality of third-party audit institutions and strengthening the supervision of financial fraud by relevant government departments,this paper puts forward some Suggestions on the prevention and management of financial fraud of listed companies in China.Prior to this,researches on financial fraud mostly used old,classic and traditional cases that had been extensively discussed,and the countermeasures proposed were also broad.However,this paper selected the latest financial fraud case of KangMei pharmaceutical in 2019 for analysis,which is more timely and representative.The factor analysis method is used to analyze the cause of individual fraud of KangMei pharmaceutical,which has a good theoretical basis and makes the cause analysis and conclusion more scientific.Based on the novel fraud risk factor theory,more detailed prevention and control measures are put forward,which has certain novelty and practicality.