A Case Study Of Financial Fraud In F Company Based On Fraud Risk Factor Theory

In recent years,China’s economy has developed vigorously and the securities market has become more and more mature.However,some listed companies such as Wanfushengke,Kangdexin,and Great Wisdom have repeatedly experienced vicious financial fraud.This not only disrupts the order of China’s securities market,violates the interests of investors,but also undermines the integrity of society,and has severely adversely affected social values.Based on this background,it is necessary to deeply study the financial fraud cases of listed companies,analyze the causes of fraud,and then propose a series of widely applicable measures.After combing the theories about the causes of financial fraud using the literature research method,this article decided to choose the theory of fraud risk factors as the theoretical basis for case studies.The fraud risk factor theory is based on the perspective of the actor of the fraud event,and divides the financial fraud drivers into individual and general factors.Individual factors include quality and motivation,and general factors include opportunity,exposure,and punishment.The five factors interact,and without any of them,financial fraud is difficult to occur.One of the theoretical innovations is to propose a "punishment" factor,which makes research on the consequences of fraudulent behaviors more meaningful.At the same time,the "quality" factor as the source of fraudulent behaviors includes accounting ethics issues such as professional ethics and fluke psychology.In line with China’s increasingly complex securities market,it also makes the research more reasonable and feasible.As a leading company in China’s motor manufacturing industry,Company F was investigated by the Securities and Futures Commission for financial fraud and caused widespread concern.This article selects F company’s fraud incidents as the research object,and uses case analysis method combined with the current situation of domestic securities market to systematically study the causes and prevention of financial fraud in listed companies.This article first briefly introduces Company F,analyzes the identification and methods of fraud behaviors by discussing the beginning and end of the case;then based on the fraud risk factor theory,it starts from the five dimensions of quality,motivation,opportunity,exposure and punishment through qualitative analysis.In-depth analysis of the internal and external environment of the F company,to explore the underlying causes of fraud;Secondly,the weight of different fraud drivers is judged by AHP.Finally,based on the conclusions of this article on the analysis of drivers,and combined with China’s national conditions,from the aspects of internal control,moral constraints,external audit,equity financing,and the functions of regulatory agencies Universal precautionary measures.This article aims to improve the internal control of listed companies,reduce the distortion of financial statement information,promote the long-term healthy development of the securities market,and form a virtuous cycle of capital,and enrich our research results in the field of financial fraud prevention.