DZH Limited Accounting Fraud Case Study

The market economy is closely related to the lives of everyone in society.The economic behavior of enterprises constitutes an important part of the development of market economy.But at the same time,economic development has also brought many drawbacks,among which accounting fraud is particularly typical.Once became the focus.Due to the fact that some listed companies and accountants do not abide by the laws and guidelines,this phenomenon has emerged in an endless stream and has become increasingly serious.For investors,their benefithave been greatly damaged,which has seriously affected their investment confidence.As far as the securities market is concerned,its normal operation has been affected and the basic principles of openness and fairness have been severely damaged.For enterprises,although in the short term,they can get a large income that is inconsistent with the company's current operating conditions.But in the future,it will surely be investigated and punished by the regulatory authorities,and finally exposed to the public.It will affect the corporate image and market status,but it will lead to direct bankruptcy.Therefore,how to curb accounting fraud from the root has become an urgent problem to be solved.Based on the current status of frequent accounting fraud incidents,the author chose the Shanghai DZH Limited accounting fraud cases that occurred in 2016 to be punished by the securities regulatory commissioners.A large amount of relevant literature was consulted,and based on the existing theoretical research basis,based on the four factors of the GONE theory,careful analysis of the greed,opportunity,demand,and exposure of the accounting fraud of DZH Limited was conducted.Detailed explanation of accounting fraud inDZH Limited.The article first briefly introduced the background of the case,the outbreak of the incident,followed by an in-depth analysis of the causes of fraud from the perspective of four factors,including a serious imbalance in the ownership structure,proportional to the desire for control and greed;the lack of internal control and external supervision is not In place to provide them with opportunities;eager to change the destiny of ST and the urgent need to obtain brokerage licenses;fraud was discovered with lower exposure costs.A detailed analysis of its fraudulent measures,including false sales,early recognition of revenue,less cost,early confirmation of the purchase date,and the use of framework agreements.Finally,in order to guard against the recurrence of the big-wisdom accounting fraud case,specific recommendations were made from the four aspects of the company level,the government level,the accounting firm level and the individual level,and conclusions and inspirations were drawn.With a view to throwing bricks to attract others to provide reference for other companies,thus helping to suppress accounting fraud this unhealthy trend.