Identification and Audit Response of Financial Fraud in Listed Companies in Pharmaceutical Industry
Based on Shuang Kang Incident
DOI:
https://doi.org/10.54097/fbem.v7i2.4353Keywords:
Financial fraud, Fraud identification, Audit response.Abstract
Financial fraud is the conscious misstatement and neglect of financial information by enterprises, which is often difficult to be detected due to the asymmetric nature of information. In recent years, frequent lightning in the capital market, especially the high incidence of financial fraud in listed companies in the pharmaceutical industry, has greatly jeopardized the market order. Therefore, the article discusses the common fraudulent means and differences that the two companies have in conjunction with the financial reports and related announcement information of Kangmei Pharmaceutical and Kangdexin, dissects the abnormal characteristics of identifying financial fraud risks, and proposes corresponding audit response ideas and methods to safeguard the capital market order and investors' interests.
Downloads
References
Cheng Chen: Accounting fraud identification and audit response - based on the case of 2019 financial storm, Chinese Certified Public Accountant, (2022) No.06, p.116-119.
Xue Chen, Shengxian Li, Yueye Li: Research on auditor's industry expertise and financial fraud-a case study based on Changsheng Biotech, Accounting Newsletter, (2022) No.11, p.105-111.
Huang Fang: Analysis of fraudulent behavior of pharmaceutical listed companies-taking Kangmei Pharmaceutical and Erkang Pharmaceutical as examples, Modern Auditing and Economics, (2021) No.06, p.44-47.
Qinhua Ye, Fan Ye and Shizhong Huang: Recognition and response to income fraud-a case study based on the fraud of Dongfang Jinyu's transactions, Finance and Accounting, (2021) No.15, p.36-40.
Fan Ye, Qinhua Ye and Shizhong Huang: Identification and response to inventory fraud-a case study based on Kangmei Pharmaceutical, Finance and Accounting, (2021) No.13, p.48-52.
Xingmei Zhao, Jiang Zhu and Jinmei Tian: Examples of financial misstatement, audit response and technical error analysis, Finance and Accounting Communication, (2021) No.09, p.16-19.
Keliang Li: Warnings and Reflections on Independent Auditing from "Ruihua's Tragedy", Monthly Journal of Finance and Accounting, (2020) No.20, p.90-95.
Shizhong Huang, Qinhua Ye, Shan Xu, et al. Analysis on Financial Fraud of Chinese Listed Companies from 2010 to 2019, Monthly Journal of Finance and Accounting, (2020) No.14, p.153-160.
