Top ten financial fraud in audit work

The fake accounts of listed companies, from manipulating profits to fake sales documents, from affiliated transactions to large shareholders occupying funds, from falsely reporting fixed assets to less folding depreciation. As an ordinary investor, how can we maximize the use of the information that they have to do to break the conspiracy of some illegal companies? Let's take a look at the top ten major financial fraud in audit work.

1. Fictional income

This is the worst financial fraud. There are several ways. One is to leave the warehouse for sales; the other is to issue invoices and confirm the income; the third is to open an invoice and confirm the income.

These techniques are obviously illegal, but some techniques are legal in form, but they are illegal. This situation is very common. For example, listed companies use subsidiaries to sell to third parties at a market price to confirm that the subsidiary's sales revenue Then, another company is purchased from the third party. This approach avoids the constraints that the group's internal transactions must offset, ensure that the income and profits are confirmed in the merger statement, and achieved the purpose of manipulating income.

In addition, some of the use of yin and yang contract fictional income, such as the payment of 100 million in the public contract, but the secret contract stipulates that the actual payment is 50 million yuan, and the other 50 million yuan will be hung. This is very common in affiliated transactions.

2. Confirm the income in advance

This situation is: First, determine income when there is major uncertainty. The second is the inappropriate application of the percentage of the completion. The third is to confirm the income when you still need to provide future services. The fourth is to issue sales invoices in advance to beautify performance. In the real estate and high -tech industries, the phenomenon of confirming income in advance is very common. For example, real estate companies often use pre -collection accounts for sales revenue and abuse the completion percentage method. Taking engineering income as an example, the income of the project should be confirmed according to the schedule, and the more confirming the progress of the project will lead to more confirmation profits.

3. Exhaust confirmation income

Delays confirmed income, also known as deferred income, will be confirmed by the revenue confirmed in this period to confirmation during the future. Like confirmation of income in advance, delay in confirmation income is also a way to make profit management. This method generally occurs when the company's current income is relatively large, and the future income is expected to decrease from time to time.

4. Transfer cost

In order to increase profits, listed companies do not pay some expenses at all, or be borne by the parent company. Some companies often adjust their profits by paying off depreciation, inventory pricing, and waiting for accounting. Listing as less as a fixed asset depreciation and the cost or cost of the cost or fee is not mentioned.

The costs that should be reflected in the current report; hanging in the "delayed assets or" "prefabricated fees" to regulate profits. When it is not ideal, or lower the cost standards paid by listed companies, or bear the relevant costs of listed companies, and even return the costs paid in the previous year, thereby achieving the purpose of transfer costs and increasing profits.

5. Cost capitalization, deferred costs and delayed confirmation costs

The cost capitalization is mainly to borrow costs and R & D expenses, and there are many deferred costs, such as advertising costs, employees' selling identity fees, etc. For example, the research development expenditure is listed as deferred assets; or deferred advertising costs, maintenance and maintenance costs, or loss of trials.

When the newly -built factory is actually put into operation, the accounting account is still carried out in accordance with the unsuccessful investment state. According to the current accounting policy, the loan interests are included in the value of fixed assets instead of the proposal value instead of the proposal instead of the proposal instead of the proposal of the newly -built factory workers' salary before the completion. profit and loss. Increase profits through this method. There are also virtual exchanges such as reporting the accounts in a timely manner. According to normal procedures, the cost of processing costs and travel expenses incurred should be borrowed by employees first. At the end of the year, if employee borrowing is large, you should pay attention to whether there is such a situation.

6. Make more or less asset impairment preparation to regulate the profit

The "Enterprise Accounting System" requires that starting from January 1, 2001, listed companies must add eight asset impairment preparations. In the case of incomplete control of corporate legal person governance and internal control, there is a lot of room for profit adjustment for asset impairment preparation. Due to the complexity of the connotation of asset impairment accounting, the same assets have the value of uncertainty, because the impairment of assets is actually a market analog price that is mixed with the subjective estimation of the authorities. It provides great space for the profit manipulation of the enterprise management authorities.

The four new impairment preparations this time involve the valuation of real estate and intangible assets. Compared with the old four preparations, the measurement of asset impairment is more difficult, and it even greatly exceeds the professional judgment of the financial department and auditor of the listed company. Unless the help of professional real estate and intangible asset appraisers, the proper asset impairment standards are not obtained at all, which will affect the correctness of the impairment preparation. This is even more room for listed companies to use asset impairment to manipulate profit.

At present, listed companies use asset impairment to play accounting digital games. The main game rules are to use asset impairment preparation to delay or lose early loss. Typical manifestations are huge losses in a certain year -let me lose money at a time.

7. Create non -recurring profit and loss matters

Non -recurring profit and loss refers to the company's normal operating profit or loss, one -time or occasional income profit or loss, such as asset disposal of profit or loss, temporary subsidy income, the interest of new shares to purchase frozen funds, and the merger difference. Although non -recurring gains and losses are also part of the company's total profit, the impact on profit is temporary because it does not have long -term and stability. The special nature of non -recurring profit and loss projects provides opportunities for the company's management profit. In particular, some non -recurring gains and losses are listed in themselves. 8. Visible assets and leakage liabilities

The operation method is:

Multi -inventory value: Increased inventory cost or evaluation of intentional calculation errors to increase inventory value, thereby reducing sales costs and increasing operating benefits. Or list the inventory to conceal the fact that the inventory is reduced;

Multiple accounts receivables: Due to the listing income of the virtual list, the accounts receivable will be listed;

More fixed assets: for example, less depreciation, income expenditure listed as capital expenditure, improper interest capitalization, fixed assets, etc.;

Low liabilities: For example, leakage of external arrears or short estimates.

9. Submarine losses

At present, many of the book assets of listed companies are non -performing assets. In order to squeeze out water, the "Enterprise Accounting System" requires listed companies to provide eight preparations for impairment, but many listed companies have not been raised at all. When reorganizing and listing, based on the needs of packaging, a piece of assets have been added, which may be hung on the receivables, or may increase inventory, fixed assets, intangible assets, etc. Also hanging on the account.

After listing, because the original main business does not work, fixed assets and intangible assets have been impairing sharply, but listed companies do not care about impairment preparations. In addition, they continue to pack packaging after listing, resulting in a number of assets, especially receivables. The amount of potential losses brought by these bad assets is often very large.

10. Asset reorganization creation profit

In order to optimize the capital structure, adjust the industrial structure, and complete the purpose of strategic transfer, asset replacement and equity replacement are asset reorganization. However, in recent years, asset reorganizations have always reminded people of fake accounts.

The secret of many listed companies turned losses to profit is asset reorganization. Through non -equivalent asset replacement, transporting profits for listed companies is still one of the main methods of profit manipulation. Although it is limited Pay profits to listed companies through non -associated asset reorganization methods.

Source: CFO Vision View, Audit Home

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