Research On Corporate Financial Fraud Based On GONE Theory Of Fraud Risk Factors

The newly promulgated securities law in 2020 has greatly increased the cost of securities violations,indicating that the government is very determined to crack down on financial fraud.However,at present,China’s punishment for financial fraud cases is not high enough.The cost of enterprise fraud is far lower than the benefits brought by fraud.Greater efforts should be made in the prevention and control of fraud.The pharmaceutical industry is not only related to national health and safety,but also related to major issues such as epidemic prevention and disaster relief,and has a significant contribution to the output value of the national economy.This paper selects the pharmaceutical industry as a typical example of fraud analysis,and puts forward some suggestions and conclusions from multiple perspectives.In theory,this study helps to improve and supplement the existing literature research results,and in practice,it helps to strengthen the internal control of enterprises,effectively avoid the occurrence of financial fraud,and maintain the confidence of investors in the capital market.This paper mainly uses the fraud risk factor method to comprehensively and deeply analyze the financial fraud motivation of the case company Kangmei pharmaceutical from the four aspects of gone theory.Firstly,this paper analyzes the theoretical basis of financial fraud and gone theory,the development status of pharmaceutical industry and the characteristics of financial fraud of Listed Companies in pharmaceutical industry;Secondly,take Kangmei pharmaceutical as an example to study,including the basic situation,organizational structure,ownership structure and review of financial fraud events,so as to get the main means of financial fraud of Kangmei pharmaceutical;Finally,through the financial fraud means of Kangmei pharmaceutical industry,the fraud motivation based on gone theory is obtained.On this basis,combined with the perspective of gone theory,the Governance Countermeasures of financial fraud of Kangmei pharmaceutical industry are put forward.This study shows that Kangmei pharmaceutical’s financial fraud is mainly realized by using false bank documents to falsely increase monetary funds,forging business vouchers to falsely increase income,falsely increase fixed assets,and manipulating related party accounts to buy and sell their own stocks.Based on the four factor theory of gone,the fraud motivation of Kangmei pharmaceutical industry is obtained,including greed factor,opportunity factor,demand factor and exposure factor.Kangmei pharmaceutical’s financial fraud governance countermeasures:greedy factors:improve the moral and cultural construction level of corporate governance,and strengthen the review and supervision of audit service quality;In terms of opportunity factors:optimize the company’s ownership structure,improve the enterprise’s internal control system,and strengthen the supervision of external supervision departments;Demand factors:promote the reform of the capital market,strictly implement the delisting system,and provide good financing channels for enterprises;Exposure factors:establish the early warning system of financial indicators in the capital market and strengthen the punishment of fraud.