Case Analysis Of Financial Fraud Based On Gone Theory

In recent years,many domestic enterprises have expanded their business overseas,with an annual growth rate of more than 10%.Driven by the government's policies,more enterprises hope to expand their business overseas.Even if it is driven by the government,there are many problems to be faced in carrying out cross-border business.For many countries,especially some poor countries in Africa,government regulation is not in place.Because of the cost,domestic accounting firms can not guarantee the authenticity of accounting information.More and more financial problems are emerging.Even in the foreign capital market,there are also scandals of financial fraud.Every year,many stocks are delisted from the exchange,and the number is more than one year,and it keeps a certain trend of growth.Regulators have been focusing on this problem for a long time,hoping to come up with a perfect solution to deal with this problem.Increasing research in this area can provide regulators with certain reference.Analyzing the means in the process of cross-border financial fraud of companies can help small and medium-sized investors to see the real business situation of listed companies,so as to avoid small and medium-sized shares East's rights and interests were infringed.In these cases,some financial frauds are very hidden,while others are very obvious.These fraudsters provide false financial information to the market and bring huge economic losses to the majority of small and medium-sized investors and stakeholders.Therefore,it is of great practical significance to study these cases of financial fraud.The case of Jiangsu Yabaite company is selected because it is the first share of cross-border financial fraud,which is very representative in terms of the amount of fraud and the punishment.This paper is divided into five parts: introduction,theory introduction,case introduction,case analysis and conclusion enlightenment.Based on the gone theory,this paper introduces the company of Jiangsu Yabaite in detail.Combined with the characteristics of construction contract accounting,this paper uses some analysis methods to analyze Yabaite's statement and its cash flow is negative net value.It is found that its cash flow and net profit are completely mismatched.The company has a large number of related transactions and the sales cost is very low,and its gross profit rate is much higher than that of the same industry.Then combined with the gone theory analysis,the main reason of Yabaite's financial fraud is to achieve the agreed performance profit.Then it points out that financial fraud is harmful to audit institutions and securities companies,including enterprises.The conclusion andsuggestions put forward at the end of this paper have practical significance for the healthy and orderly development of domestic capital market.This paper concludes that Abbott modifies its financial report by increasing its operating revenue and accounts receivable.Based on this,we can draw a conclusion: if a listed company's cross-border business accounts for a large proportion and its annual profit fluctuates greatly,and its main business accounts for a large proportion of its total income and its gross profit rate is particularly high,then the company is likely to commit fraud.