Study Of Financial Fraud Case Of Xi’an Huaxin New Energy Co.,LTD

With the support of the state and the active participation of a large number of small and medium-sized enterprises,the New OTC(Over the Counter)Market has become more and more complete and standardized since its expansion,expanding the survival space of small and medium-sized enterprises in the fierce market competition,and promoting the vigorous development of a large number of high-tech enterprises.The highly open and inclusive market environment has attracted a large number of companies from all walks of life eager for financing to enter.The New OTC Market is the product of the development of the market economy with national characteristics.It cannot replicate the successful experience of the Main-Board Market and the Second-Board Market,nor can it ignore national conditions and completely learn from the mature model of the NASDAQ,the New OTC Market can only explore for the continuous growth and progress.Therefore,despite the rapid development of the New OTC Market,the time is not long,various systems are not very comprehensive,coupled with insufficient supervision and timely punishment,in order to gain a share in the broad capital market,various frauds such as falsely increasing operating income and profits,and fictitious related party transactions are emerging one after another.A large number of small and medium-sized enterprises flood into the New OTC Market in order to obtain capital support and achieve the purpose of expanding their own business scale or carrying out IPO.Some enterprises provide false financial data to deceive financial report users and stakeholders when their financial indicators were not competitive in financing or could not meet the requirements of IPO.This paper mainly adopts the research methods of theoretical research and case analysis,and using the GONE theory of financial fraud to deeply investigate the financial fraud case of the Xi’an Huaxin New Energy Co.,LTD,which is a company of the New OTC Market.First,summarize the domestic and international classic theories and related research results,and systematically understand the financial fraud identification,means,drivers and governance of the capital market,and then using the GONE theory to analyze the financial fraud case of the Xi’an Huaxin New Energy Co.,LTD in detail,make reasonable suggestions on how to prevent financial fraud after clarifying the dangers of it.It is of great practical significance to analyze the financial fraud cases of the New OTC Market enterprises and break away from the limitation of theoretical research.Not only can it provide a reference for the effective identification of financial fraud in the future,but it will also help to find system defects to timely supplement and improve relevant laws and regulations to prevent similar frauds from happening again.Financial fraud is the price of the rapid development of the capital market,which has brought huge negative impact on the effective operation of the New OTC Market,it can only bereasonably prevented and be regulated,but it cannot be eliminated.With the continuous expansion of the market,although the various systems and policies have been updated and supplemented in time to adapt to the development of the economic environment,the formulation of laws and regulations lags behind,unable to effectively control the increasingly serious situation of financial fraud.Frequent financial frauds have seriously damaged the economic order of the capital market and damaged the legitimate rights and interests of small and medium shareholders.The New OTC Market is an opportunity and risk coexist platform,how to utilize the limited accounting information to identify all kinds of fraud,to effectively manage all kinds of illegal acts,and to ensure the timeliness and comprehensiveness of the establishment and implementation of measures to prevent financial fraud in enterprises,all work requires the joint efforts of the state,society and enterprises,internal and external co-management can effectively ensure the orderly and healthy development of the New OTC Market.