Author(s)

Li Jia ¹, Chen Jiaying ¹

Affiliation(s)

¹ Guilin Tourism University, Guilin, Guangxi, 541006, China

Corresponding Author

Li Jia

ABSTRACT

With the rapid development of China's economy and the improvement of the capital market, the competition among enterprises has intensified. In the context of achieving the goal of maximizing benefits, in order to develop steadily in the market, enterprises have begun to use various means to conduct financial fraud and "whitewash" financial statements. Financial fraud has gradually developed into a common phenomenon of listed companies. This study mainly uses the case analysis method, and mainly conducts research and analysis on the facts of the financial fraud case of Gansu Huangtai Wine-Marketing Industry Co.,Ltd (hereinafter referred to as "HT company"). First of all, the article sorts out the research status of financial fraud in China, and explains its triangular theory, which provides a theoretical basis for future research. Secondly, this study explores the risk identification of financial fraud in general listed companies and discover some clues of HT company's financial fraud behavior from the perspective of financial indicators, more clearly grasp the financial fraud means, and use the financial fraud triangle theory to analyze the fraud motivation. Finally, based on the vertical perspective of the "triangle", this study summarizes and puts forward measures and suggestions to prevent financial fraud from the perspectives of internal corporate governance and external governance, so as to guide the development of enterprises, reduce the occurrence of financial fraud incidents, and promote the continued stability of the capital market.

KEYWORDS

Financial fraud, Risk identification, Triangle theory, Motivation and means

CITE THIS PAPER

Li Jia, Chen Jiaying, Research on the Identification and Countermeasures of Corporate Financial Fraud Risk: a Case Study of Gansu Huangtai Wine-Marketing Industry Co., Ltd. Accounting and Corporate Management (2023) Vol. 5: 8-15. DOI: http://dx.doi.org/10.23977/acccm.2023.050802.

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