A Case Study of Fraud in Xinjiang Ready Health Industry Co.,Ltd. Based on Fraud Triangle Theory

Abstract

Since the case of Kangmei Pharmaceutical Co.,Ltd., financial fraud in the pharmaceutical industry has received increasing attention from all parties in society, and financial fraud in listed companies has an important impact on the sustainable and healthy development of the capital market. Taking the four-year-long financial fraud of Xinjiang Ready Health Industry Co.,Ltd. as an example, this paper analyzes the pressure, opportunities and excuses of financial fraud of this enterprise by applying the fraud triangle theory, and finally puts forward governance suggestions from four aspects: improving corporate governance structure of the company, enhancing the function of auditors and strengthening the effectiveness of regulatory departments to punish financial fraud.