The concrete forms and contents of financial report fraud in Delong Company and its influence on enterprises.

Delong's financial fraud case and its analysis

① An overview of Delong's financial fraud case [8]

In 1986, Urumqi New Product Technology Development Department and Tianshan Trading Company were established successively, engaged in color printing, clothing wholesale, food processing, computer sales and other businesses, which was Delong's predecessor. In 1992, Xinjiang Delong Industrial Company was incorporated with a registered capital of RMB 8 million. And set up Xinjiang Delong Real Estate Company, and began to enter the fields of entertainment, catering and real estate investment. In 1994, Xinjiang Delong Agriculture and Animal Husbandry Co., Ltd. was established with a registered capital of RMB 1 million to develop agriculture and animal husbandry in Xinjiang. Xinjiang Delong International Industrial Corporation was established in 1995 with a registered capital of RMB 2 million. Set up a liaison office in North America to expand foreign business. In 1996, it was transferred to Xinjiang Tunhe Legal Person Stock and established Xinjiang Tunhe Group. In 1997, it was transferred to Shenyang Alloy Corporation and entered the field of household outdoor maintenance equipment and power tools manufacturing. Transferred the legal person shares of Hunan Torch and entered the field of auto parts manufacturing. In 1998, Xinjiang Delong International Industrial Corporation was restructured into Xinjiang Delong (Group) Co., Ltd.; And set up China National Travel Co., Ltd. to enter the tourism industry. In 1999, Beijing Jubilance Culture Development Co., Ltd. and Beijing Guowu Sports Exchange Co., Ltd. were established and entered the cultural and sports industry. In 2, Delong International Investment Holding Co., Ltd. was registered in Pudong, Shanghai with a registered capital of RMB 2 million, holding Xinjiang Delong Group and Xinjiang Tunhe Group; In August of the same year, it was renamed Delong International Strategic Investment Co., Ltd.; In October of the same year, the registered capital increased to 5 million yuan. In 21, the Party Committee of Delong International Strategic Investment Co., Ltd. was established. Delong Building was completed and put into use in 22.

It can be seen that Delong's development process is very rapid. However, on April 14th, 24, it was a black day for Delong, and the "Troika" of Delong Department: Hunan Torch, Xinjiang Tunhe and Alloy Investment collectively "fell below the limit" for the first time. This not only reflects the market's loss of confidence in Delong, but also increases the authenticity of Delong's capital chain fracture circulating in the market. The disintegration of Delong Dynasty became an indisputable fact in 24.

② Comprehensive analysis of Delong's financial fraud case

A. Delong's main methods of financial fraud are defrauding banks of huge loans and misappropriating cash of listed companies through financial statement fraud, related party guarantee and related party transactions. A. falsification of financial statements. Delong's financial skill is recognized by all. He only needs to get hundreds of millions of dollars to the accounts of listed companies overnight, or in a simpler way, he only needs to show his certificates of deposit through related financial institutions (such as Nanchang Commercial Bank and Kunming Commercial Bank). B related party guarantee and related party transaction. Judging from the data of the current listing announcement, alloy investment guarantees loans of 99.59 million yuan for Suzhou Taihu Lake, 45 million yuan for Xinghaote and 138 million yuan for Suzhou Meirui. However, Suzhou Taihu Lake entrusts Deheng Securities to finance 8 million yuan, Xinghaote entrusts Deheng Securities to finance 64 million yuan, and Suzhou Meirui entrusts Hengxin Securities to invest 7 million yuan in government bonds. In addition to Suzhou Meirui, which cooperates with American capital, it entrusts. In this process, the bank's more than 2 million funds legally became the funds for Delong's stock trading.

B, Delong's financial fraud is mainly motivated by radical goals, blind expansion and imbalance of performance, listing to protect the shell, and pocketing money for personal gain. First of all, from the perspective of target positioning, Delong is similar to the above two cases in developed countries, and it has always followed the concept of industrial integration to become the industry leader, and only set foot in traditional industries. In the process of Delong's development and expansion, the strategic policies of enterprises are too radical, and the radical goals of listed companies will inevitably become the fuse for listed companies to manipulate financial reports and whitewash financial indicators when they cannot be achieved. Secondly, it has become an important matter for Delong to protect the shell for listing, then circle money for personal gain, whitewash financial indicators and manipulate accounting information.