A Case Study Of Financial Fraud Of Kunming Machine Tool Based On Gone Theory

In recent years,both the internationalization of the capital market and the improvement of the capital market system have demonstrated that China's capital market has entered a stage of rapid development.The continuous growth of the capital market not only improves its ability to optimize the allocation of resources,but also promotes the further development of China's market economy.Behind but it is worth noting that the high speed development also with many problems,one of the most serious problem is the financial fraud,financial fraud in today's capital markets has intensified the trend,one of the fraud scandal to capital market caused great shock,serious damage to the establishment of the capital market credit system is a "stumbling block" for the sustainable development of long-term capital market.Practice has proved that China's capital market needs fast and good sustainable development,and it is not advisable to only pay attention to the speed of development and ignore the quality of development.So,in order to alleviate the capital market with high quality and rapid development of the contradiction between demand and frequent financial fraud chaos,we need to use perfect the theory of financial fraud of listed company financial fraud case study analysis,through correlation analysis,identify the means of complex financial fraud of listed company,explore the deep reason for fraud of listed companies,eventually making structured,effective solutions to ease the contradictions.In this context,based on the reviewing and combing the Chinese and foreign scholars in the field of financial fraud research theory,based on the widespread GONE theory as the cornerstone of case analysis theory,this paper and the current capital market representative and widely influential state holding listed company financial fraud in kunming machine tool as an example,in collecting and fully understand the company background conditions for the use of financial fraud means in-depth analysis,and combining the theory of GONE four factors,analyzed kunming machine tool company financial fraud in such aspects as greed,opportunities,needs and exposure of deep motivation,And according to the analysis of the motivation of the proposed prevention of financial fraud kunming machine tool Suggestions.This paper is divided into six parts,the core of the paper in the second to the fifth part.Among them,the first part is the introduction,which elaborates the research background and significance of the paper,sorts out relevant literature,summarizes the research ideas and methods,and establishes the research framework of this paper.The second part is the basic overview of the financial fraud theory,mainly related theoretical concepts involved in this paper are sorted out,summarized the common methods of financial fraud and the harm caused by financial fraud,and carried out a description of the four factors of the GONE theory,for the following case analysis to do a sufficient theoretical basis.The third part is the description of financial fraud cases of kunming machine tool,the section from kunming machine tool company profile,operating and governance structure and organization structure Angle this paper introduces the basic situation of the company,and then it reviews the financial fraud in kunming machine tool,kunming machine tool were introduced the process of financial fraud,the relevant organizations and individuals involved,and regulators in the case of the penalty,the financial fraud in kunming machine tool technique adopted by the structured analysis,the analysis found in kunming machine tool fraud technique mainly has inflated revenues,inter-temporal affirm income,decreased cost and set up concealed warehouse to adjust inventory,This link has carried on the dissect and the comb to the fraud technique,has made the sufficient foreshadowing for the fourth part's theory analysis.The fourth part,based on GONE theory,analyzes the motivation of financial fraud in kunming machine tool,and takes four dimensions of greed factor,opportunity factor,demand factor and exposure factor as the framework.The greed factor dimension analysis shows that the major shareholders of kunming machine tool company are greedy for high price equity transfer,the management is greedy for personal career development,and the intermediary organization is greedy for business income.According to the analysis of opportunity factor dimension,the internal control system of kunming machine tool company has not been effectively implemented,which is mainly reflected in the serious internal control phenomenon,the ambiguity between the management and the management,the independence of the internal audit department and the failure of independent directors to supervise the management.Factor analysis is required to find that the company needs to commit fraud due to the pressure of suspension of listing and the pressure of underperformance.Exposure factor analysis found that kunming machine tool company fraud had a lower risk of exposure and the relevant laws and regulations of the fraud punishment too light,a lower risk of exposure is due to the upstream and downstream of kunming machine tool company cooperate with fraud,and this case belong to the collective management fraud,increased the difficulty of the fraud was found,the punishment too light because according to the current laws and regulations of accounting fraud is punishment punishment effect,low cost of financial fraud.The combination of the two makes it difficult to be discovered or even not afraid to be discovered.As a result,the management of kunming machine tool dares to plan financial fraud.The fifth part is how to prevent financial fraud kunming machine tools put forward Suggestions,based on the analysis of the above part from four aspects proposed to prevent financial fraud kunming machine tools program.First,to reduce the demands of stakeholders for fraud,stakeholders from the two directions of individuals and organizations respectively.Second,we should reduce the opportunities for fraud in listed companies,emphasize the need to optimize the company's shareholding structure,improve the company's internal governance,and increase the supervision role of independent directors and internal audit departments on the company.Thirdly,we should eliminate the motive of fraud of the listed companies.We should improve the delisting system of the listed companies in terms of the system to eliminate the motive of fraud,and require the company to establish a long-term development strategy in terms of the internal operation of the company.Fourth,we should improve the discovery mechanism of financial fraud exposure.The countermeasures are proposed from the following five perspectives: strengthening the penalties for fraud in listed companies,improving the professional competence of auditors,improving the internal employee reporting system,enhancing the awareness of investors' rights protection,and exerting the synergistic effect of media on preventing financial fraud.The conclusion part is the final summary and carding of the key points of this paper.