With the prosperous development of social productivity and economic trade, the business operations of listed companies have become more complex and diverse, posing more challenges to traditional auditing work. This article analyzes the case of financial fraud at Kaile Technology, provides a brief overview of its fraudulent behavior and consequences, evaluates audit risks from three dimensions: development strategy, company operations, and major misstatement risks, and finally proposes relevant risk response suggestions to prevent similar corporate financial fraud incidents from happening again.