Analysis And Prevention Of Financial Fraud Of K Company Based On GONE Theory

With the rapid development and steady operation of China’s economy,China’s capital market has become more mature and upward.However,in recent years,due to human greed,the increase in opportunities for fraud,and the low cost of violations of laws and regulations,cases of financial fraud of listed companies have frequently occurred,and the amount of money involved in the cases is huge,and the fraud methods involve a wide range of areas and are highly concealed.With the frequent occurrence of fraud,the capital market has also been greatly impacted,making many investors discouraged,always on the sidelines,cautiously looking at the invested enterprises,which has also brought unexpected troubles to other reputable and stable enterprises.For the beneficiaries of financial fraud,years of financial fraud may bring them modest benefits.In the short term,in the absence of other enterprise affiliates,it can bring so-called profits to the enterprise,but in the long run,the occurrence of financial fraud of the enterprise is bound to be exposed to the public,and it will be punished by the securities supervision of the relevant supervision department,which will also bring a very serious diving of corporate reputation and enterprise value,and the subsequent loss is irreparable by the small profits obtained by the former.The stable development and healthy operation of the capital market is not only related to the development prospects of a certain company,it involves the development lifeline of China’s entire economic market,as a platform that requires efficient allocation and reasonable integration of resources,the healthy development of the capital market is very important,then when enterprises disclose financial information in the market,they must ensure the authenticity,fairness and accuracy of information.If an enterprise obtains additional income from the enterprise or additional income of individuals for its own selfish interests,and then whitewashes the financial statements or data of the enterprise,then this behavior will seriously affect the entire capital market and the development and investment order of investors.Taking the financial fraud case of K Pharmaceutical as an example,based on the research and analysis of GONE theory,this paper deeply explains the motives,processes,consequences and impacts of financial fraud of listed companies,and deeply analyzes the prevention methods and specific implementation plans.Combined with the fraud methods of Company K,they mainly include inflating income,inflating prepaid accounts,fictitious monetary funds,major shareholders encroaching on the funds of listed companies,concealing the guarantee of enterprises,and failing to truthfully disclose the use of raised funds.Analyze the corporate financial fraud caused by the four risk factors of greed,opportunity,need and exposure,and give preventive measures to curb the generation of greed,reduce the opportunity of fraud,abandon bad demand,increase exposure risk and illegal cost.