Research On BYD’s Financial Risk Prevention From The Perspective Of Forensic Accounting

At present,the number of enterprises punished for violating regulations in China has been increasing year by year,and most of them are related to financial fraud.Under the national emphasis on preventing major risks and governing the country in accordance with the law,enterprises need to take legal measures to prevent their financial risk situation.At a time of vigorous development in the national new energy industry,as a leader in the new energy vehicle industry,BYD is duty-bound.Therefore,it is important and urgent to conduct research on the prevention of financial risks for BYD enterprises from the perspective of legal accounting.This article takes BYD Corporation as the research object,and based on reviewing existing research and basic theories,starting from the basic situation and financial operation of BYD Corporation,evaluates its overall financial risk using the F-score model.It is found that BYD Corporation’s operating condition is unstable,and it is preliminarily determined that there is financial risk,which determines the feasibility for the following research.From the perspective of legal accounting,this thesis combs the legal environment of BYD enterprises and the four main financial operation links of financing,investment,operation and income distribution,and summarizes that BYD may have financial risks such as imperfect institutional setup,variable new energy policies,unreasonable financing structure,lack of feasibility of investment,low efficiency of working capital,and unbalanced income distribution.Then,by constructing a model to evaluate the financial risk points of BYD Enterprise from the perspective of legal accounting,to determine the degree of impact of these risk points on the enterprise.Based on the risk points identified by considering the legal environment in the previous section,data and non data measurement indicators were selected,and the weights of the indicators were determined using the entropy method and the Analytic Hierarchy Process.The efficiency coefficient method was used to rate the financial risk of BYD enterprises based on the weights.It was found that the financial risk of BYD enterprises fluctuated and some indicators had higher risks.Finally,from the perspective of legal accounting,provide reference suggestions for BYD’s financial risk prevention.Give play to the function of forensic accounting,which focuses on pre prevention and in-process control,supplemented by post investigation,and combined with the evaluation results of the model on indicators,it is proposed that BYD enterprises can carry out risk prevention by establishing a forensic accounting organization,establishing an internal growth mechanism,improving the awareness of risk control and improving the internal control system,establishing multiple financing channels,systematically evaluating investment projects To improve the efficiency of working capital and ensure income distribution,risk control should be emphasized at the same time,and post risk reduction can be achieved by implementing risk investigation and management,determining the content of economic losses and providing professional litigation support.Compared to most studies on the application of forensic accounting to financial fraud,this article applies forensic accounting to the financial risk and prevention of enterprises.Firstly,when identifying the financial risk points of BYD enterprises,it fully considers the legal environment in which they are located.Secondly,it focuses on proposing countermeasures to prevent financial risks by leveraging the functions of forensic accounting,which is also an attempt and innovation of this article.