A Case Study On Financial Fraud Of JH Group

With the development of the socialist market economy,the stock market has also been booming.Due to the relatively narrow access to capital acquisition,listing companies to acquire funds audit improve the company’s social image is the purpose of many enterprises.A lot of the development of the enterprise itself is not sufficient to review through the listing,and the establishment of China’s securities market and the development of a relatively short time,and other related legal supervision mechanism is not perfect,supervision on illegal violations and the amount of punishment is relatively low,difficult to deter fraud to enterprises.This greatly affects the investor’s confidence that is not conducive to the long-term stable development of the securities market,and thus disrupts the normal order of the capital market in China.It is necessary to study financial fraud to improve the ability of identifying financial fraud risk,so as to safeguard the legitimate interests of investors,promote the long-term and stable development of audit work,improve the image of Public Accountants in the public and improve the credibility of audit reports.The financial fraud of the JH group is a relatively high financial fraudulent event of high social concern.The problems existing in the enterprise,the practices of fraud and the existing problems of the intermediaries all belong to the enterprises that have been found to be fraudulent.This paper selects JH group as a case as fan,and explains this theory,and applies GONE’s theory of accountability theory to conduct in-depth analysis of JH group’s financial fraud cases.The motivation and other aspects of the fraudulent practices are studied.This study found that the emergence of financial fraud and non audit institutions were related to the lack of internal control,the failure of internal control and the intermediation of audit procedures.Because the company’s governance structure has inherent defects,the whole company is controlled by a large shareholder,and the board of directors and board of supervisors can not function normally,which will result in the investigation of such behavior if the major shareholder is cheating.The audit risk assessment of the auditor is not in place,and the substantive procedure is in the form.Some suggestions are given in the supervision side,the internal supervision of the company,the corporate governance and the accounting firms.Therefore,the problem of fraud is easier to be found,accounting information is more reliable,and people’s confidence in financial statements is improved.