Analysis and thinking of Hongda New Material Financial Fraud Case

Abstract

With the continuous development of the economy, emerging companies in various industries are also competing for flowers, so information stakeholders in all aspects will pay more attention to the appreciability of profits when using financial statements, and accountants will be more likely to whitewash the statements. However, the occurrence of financial fraud will not only cause huge losses to enterprises, but also expose some shortcomings in various aspects of business ethics and professional ethics. Therefore, this paper analyzes the financial fraud incidents of Hongda New Materials, which then leads to various business ethics and professional ethics thinking problems such as the lack of ethics of financial personnel, the ineffective internal control system of enterprises, and the incomplete construction of industry rule of law, and gives suggestions for feasible measures.