Study of Financial Fraud Based on Crime Theory: An Example of YiHua Lifestyle Technology Co.Ltd.

Yaling Chen; Shan Xiong; Ting Duan

doi:10.54097/fbem.v9i3.9653

Authors

Yaling Chen
Shan Xiong
Ting Duan

DOI:

https://doi.org/10.54097/fbem.v9i3.9653

Keywords:

Financial fraud, Crime theory, YiHua Lifestyle Technology Co.Ltd.

Abstract

Capital markets have flourished in recent years, and while regulatory forces have continued to advance, there is no shortage of leakages that have caused major shocks to capital markets. It has seriously threatened the confidence of market participants in financial information and deteriorated the quality of the audit function. In order to safeguard the interests of all parties in the capital markets and to promote a thriving industry and business, the fraud problem needs to be curbed more effectively. In this paper, we will focus on five aspects of the case, namely the characteristics of the fraudster, the secret of fraud, the mechanism of incentivising fraud, internal and external monitoring and the results of fraud, from the Crime theory, taking YiHua Lifestyle Technology Co.Ltd. as an example, and offer fraud prevention advice on internal corporate governance, business strategies and external auditing.

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