Case analysis of financial fraud in Zhangzi Island based on the fraud triangle theory

This paper conducts an in-depth analysis of the financial fraud case of Zhangzi Island based on the Fraud Triangle Theory. The study identifies three key factors that drove Zhangzi Island's financial fraud: pressure, opportunity, and self-justification. Pressure stemmed from the risk of delisting due to consecutive losses for two years; the opportunity was due to internal control deficiencies and the difficulty of verifying biological assets; and self-justification was the management's rationalization of unconventional methods to ensure the companys survival and development. The study suggests that enterprises should strengthen internal controls and cultivate a culture of integrity. Regulatory agencies should leverage modern information technology to enhance supervisory efficiency in order to effectively prevent and combat financial fraud.