A Case Study Of Financial Fraud In Company A

With the accelerated iteration of information technology,technology not only penetrates into all aspects of people's lives,but also deeply participates in all aspects of the production and operation of enterprises.Especially in recent years,more and more innovative industries and innovative companies have emerged.They have broken through traditional business logic and business thinking,put forward some new business concepts and built a new business model with information technology as the low-level technology.Information technology catalyzes intangible assets such as human capital and customer relationships to become key elements for creating corporate value.Meanwhile,since the accounting standards lag behind these new developments,companies in the new business sector must rely on more professional judgments when using current corporate accounting standards for confirmation and measurement,which makes it difficult to identify and analyze such corporate financial fraud by the financial statement level.In recent years,emerging companies such as Shanghai DZH Limited and Luckin Coffee have burst out fraudulent inside stories one after another.The scale of their involvements has shocked the market and their operation techniques are thoughtprovoking.In order to maintain the fairness of China's capital market,it is necessary to strengthen the understanding of innovative enterprises and take the initiative to prevent potential fraud.Considering that technological innovation-driven companies involve multiple industries,and there may be large industry differences among different industries,it is not appropriate to take technology-driven companies as a research object as a whole.The Internet video industry is a new industry born from the rise of information technology.Its existence and development are highly dependent on the support of information technology.Therefore,in this thesis,it takes Internet video industry as an entry point for researching technology-driven enterprises.Company A was once a well-known listed Internet video company in China.It was once favored by the capital market through the four-element ecological concept of "platform +terminal + content + application",and its stock price has been advancing all the way.However,in April 2021,the China Securities Regulatory Commission officially issued a letter of administrative penalty decision on Company A,exposing a series of vicious fraud facts that had been planned to implement since the beginning of its issuance.Today,the fraud case has come to an end,but the legal proceedings of investors and upstream and downstream suppliers are still on the way.In this thesis,first of all,three standard financial reports are taken as an outline,summarizing the general characteristics of the financial performance of the Internet video industry,comparing and analyzing the differences in the financial statements of Company A after the implementation of financial fraud,so as to summarize the main characteristics of financial fraud in the Internet video industry.Research has found that the indirect nature of the profit model of Internet video companies is the fundamental reason why companies face the pressure of fraud.On the other hand,the lack of accounting standards makes the company's core platform assets fail to be reflected in the report,and the financial report distorts the description of the company's asset status.Under this premise,simple profit indicators and cash flow indicators are difficult to judge the business situation of the enterprise,and the valuation model that relies excessively on non-financial indicators makes the early warning function of value indicators also fail.Therefore,to identify financial fraud problems in the Internet video industry and the wider innovation industry driven by intangible assets,we should adhere to both financial analysis and non-financial analysis,and combine traditional financial analysis with the new characteristics of innovative companies.