Analysis Of Kangmei Pharmaceutical's Financial Fraud

With the increasingly accelerated process of globalization and increasingly fierce market competition,the development of the listed company not to be eliminated,increasingly through business transformation,innovation,and so on ways to realize the survival and development,however,because of the profit drive,to meet earnings expectations,avoid the pressure of delisting,the listed company financial fraud case.Financial fraud not only impacts the stable order and development of the capital market,but also deeply impacts the confidence of investors and causes a crisis of social trust.The frequent occurrence of financial fraud of listed companies has become a huge obstacle to the development of China's securities market towards a healthy and stable road.The problem of financial fraud should not be underestimated.First of all,financial fraud misleads the judgment of investors,to bring investors varying degrees of losses.Secondly,it is also extremely detrimental to the long-term development of the company.Financial fraud has a negative impact on the reputation of the company and is not conducive to the company's continuous operation.Finally,the frequent incidents of fraud have exposed the loopholes of supervision.For the society,the credibility of the supervision departments has been challenged,which finally affects the normal performance of the functions of the regulatory agencies.Therefore,it is necessary to double regulate the financial fraud in theoretical research and practice,and strive to eliminate the occurrence of financial fraud from the source,so as to escort the sustainable development of enterprises.Taking kangmei pharmaceutical co.,LTD.(hereinafter referred to as "kangmei pharmaceutical")as an example,this paper identifies the means of corporate fraud,starts with the causes of financial fraud,analyzes the internal and external causes,and finally draws a conclusion,and puts forward preventive Suggestions,so as to warn other listed companies of such incidents.On the basis of the previous research and theoretical analysis,this paper takes kangmei pharmaceutical financial fraud case as the research object,firstly introduces the concept,identification,motivation and common means of financial fraud,and provides a theoretical basis for the case analysis.In the case of introducing kangmei pharmaceutical financial fraud,the development and governance structure of kangmei pharmaceutical company are introduced in detail,the process of combing kangmeipharmaceutical pharmaceutical fraud through time clues,mining kangmei pharmaceutical financial report fraud suspects,combing kangmei pharmaceutical suspected of three kinds of fraud means.After sorting out the fraud process of kangmei pharmaceutical co.,LTD.,the reasons and influences of financial fraud were analyzed according to the case.The reasons for the fraud of kangmei pharmaceutical co.,LTD.Were divided into internal reasons and external reasons.The external causes are dereliction of duty of audit institutions,insufficient external supervision and low illegal cost.Finally,three conclusions are drawn: first,the imbalance of corporate governance is the main cause of financial fraud;second,the failure of audit institutions to fulfill their duties will encourage the emergence of financial fraud.The root of preventing financial fraud is to do a good job in the internal governance and supervision mechanism of the company.Enterprises should reasonably allocate the power of the management,establish an effective internal governance mechanism,strengthen external supervision and effectively play the role of audit institutions.Through the research of the listed company financial fraud case,revealed the financial fraud of listed companies means,to understand the causes of financial fraud,help to realize the financial fraud of listed companies will bring serious consequences,and realize the importance of internal governance for the company development,enterprises in expanding business development at the same time,the enterprise's internal governance structure should be perfected,effectively play the role of supervision mechanism.By analyzing cases and summarizing experience,it aims to warn other listed companies to minimize the possibility of financial fraud,which is of great significance to listed companies,investors and the capital market.