A Case Study of Financial Fraud in Listed Companies

Taking Kunming Machine Tool as an Example

Abstract

With the continuous development of China's capital market, the deepening of the system reform, the national economy has achieved rapid development, but behind the prosperity of the market economy, some problems also arise; Some enterprises do not follow the financial accounting reporting standards, consciously use a variety of means to distort the reflection of business activities, making accounting information distortion, misleading information users' decisions. The frequent occurrence of financial fraud not only causes serious losses of investors' interests, but also causes a huge impact on the capital market, which undoubtedly hinders the development of China's national economy and is not conducive to the economic development of human society. Therefore, in this context, the analysis and research of financial fraud cases is particularly important. Based on the typical cases of financial fraud in the past two years, kunming machine tool as an example, the review case background, reveal its financial fraud means, based on business ethics and accounting professional ethics Angle, analysis of fraud motivation, and puts forward feasible financial fraud prevention suggestion and strategy, in order to promote the healthy development of capital market in China.