A Case Study of Financial Fraud Based on Fraud Triangle Theory——The Case of Yong’an Forestry’s Merger and Acquisition of Moriyuan Company

In recent years, with the changes of the economic environment, some business leaders chose the inappropriate means of financial forgery to maintain their corporate image or pursue shortterm interests. This kind of behavior not only violates laws and regulations, but also damages the long-term development of enterprises and social trust. As to forestry, as an important part of China’s economic system, its development is not only related to the ecological construction, but also to the sustainable development of the society and other major issues, which occupies a crucial position in China’s economic system. This study selects Yongan Forestry as a case for in-depth discussion. Firstly, we combed in detail the financial falsification events involved in the process of Yong’an Forestry’s merger and acquisition of Senyuan Company, and analyzed the means of financial falsification; Secondly, by using the theoretical framework of the Fraud Triangle, around the three core aspects of pressure factors, opportunity factors, and rationalization reasons, we conducted in-depth analysis of Yong’an Forestry to implement the motivation and roots of the financial falsification; Finally, for above problems we put forward a targeted solution strategy and suggestion.