Author(s)

Yimin Chen

Corresponding Author

Yimin Chen

ABSTRACT

With the development of the capital market, CPA audit gradually matures, and its importance is increasing day by day. This article selects the classic case of Luckin Coffee as the research object, analyzes Luckin’s research on financial fraud methods, and conducts financial analysis on cash flow, total asset net interest rate, and operating profit margin, and discovers Luckin’s fraud process and reasons for fraud. And summarize the corresponding audit countermeasures. In addition, through the Luckin incident, the enlightenment of the company's equity structure and operating methods in the capital market has been drawn.

KEYWORDS

Luckin fraud, Financial analysis, Audit failure, Chinese concept stocks