Case Study On Financial Fraud Of Fushun Special Steel Based On Fraud Triangle Theory

Since the reform and opening up,my country’s capital market has achieved a qualitative leap in the development speed and market size of listed companies after nearly 40 years of exploration and development.However,due to the limited resources of the market itself and the fierce competition among listed companies,especially after entering the 21 st century,as the vacancies of the Growth Enterprise Market,the Small and Medium-sized Board,and the New Third Board are filled,the problem of corporate financial fraud is becoming more and more serious.severe.Financial fraud leads to distortion of accounting information disclosed by companies,which seriously affects the orderly development of the capital market and causes huge losses to investors,companies in the market and even the country.On the one hand,such illegal acts will damage the self-development of listed companies and the healthy operation order of the capital market.Under these potential adverse effects,exploring the motives of financial fraud in listed companies and seeking management and preventive measures are crucial to standardizing the operation and management of companies,protecting the interests of investors,and promoting the healthy development of the capital market.This paper selects Fushun Special Steel as a sample case to study financial fraud by way of case study.On the one hand,the reason is that Fushun Special Steel has the dual characteristics of state-owned enterprise standards and special steel industry,and it is also a pioneer enterprise of mixed ownership reform,so Fushun Special Steel has a certain representation in my country’s capital market;on the other hand,it is because Fushun Special Steel The financial fraud incidents in China have three notable characteristics: large amount,long time span,and bad negative impact.This paper combines the fraud triangle theory with the financial fraud case of Fushun Special Steel,and brings the theoretical method into the case study.Firstly,it summarizes the theoretical research and analysis on the theory of financial fraud at home and abroad,and conducts a literature review.Then it explains the concept of financial fraud,summarizes its characteristics,summarizes the fraud triangle theory and other basic theories selected in this paper,and lays a good theoretical foundation for subsequent research.Then describe the overall situation of Fushun Special Steel Company,and introduce the background of the whole case.Then,through the three dimensions of the fraud triangle theory,the motives of Fushun Special Steel’s financial fraud were refined according to the three aspects of pressure,opportunity and excuse（self-rationalization）.Finally,the corresponding countermeasures and suggestions for dealing with financial fraud are put forward from three aspects:alleviating fraud pressure,reducing fraud opportunities and eliminating fraud excuses.