Research On R&D Expenditure Fraud Of High-Tech Enterprises On The Neeq Based On GONE Theory

The progress of science and technology has greatly improved people’s living standards.With the continuous development of China’s market economy,enterprises have become the main body of scientific and technological innovation.2021 China’s expenditure on research and experimental development is as high as 278.64 billion yuan,and the number of high-value invention patents per 10,000 population reaches 7.5.High-tech enterprises are at the forefront of technological innovation.By the end of2021,there were more than 330,000 high-tech enterprises nationwide,contributing up to 2.3 trillion yuan to the annual national tax revenue in 2021,and high-tech enterprises have a total of 1.123 million valid invention patents,accounting for 63.6% of the total valid invention patents of domestic enterprises.With the reform of the NEEQ and the establishment of Beijing Stock Exchange,many excellent high-tech enterprises have emerged and play a great role in China’s capital market.However,because high-tech enterprises are both high-risk and high-revenue,the relevant national system is not mature enough,and the managers of individual enterprises are willing to falsify for their own selfish interests,enjoying the preferential policies of the state while profiting through illegal means,which must be given sufficient attention.This paper counts the top 27 high-tech enterprises with the highest market capitalization in the NEEQ,and summarizes and analyzes their information disclosure,R&D expenditure and capitalization rate,R&D intensity and gearing level.And I counted 24 enterprises involved in R&D expenditure violations in the last five years in the NEEQ,22 of which are high-tech enterprises,and the violations mainly include fictitious R&D expenditures,inaccurate R&D cost imputation,and unreasonable capitalization of development expenditures.In this paper,Beijing Blue Mountain Technology Co.was selected as a case company,which was found to be suspected of significant financial fraud during the review process of declaring the selected layer.As a high-tech enterprise listed on the NEEQ for nearly eight years,it should have a strong scientific research team and master a number of advanced core technologies,but according to the SEC’s penalty announcement,Blue Mountain Technology "does not have actual R&D capabilities" and "has no real R&D business",inflated R&D expenditure of 248,580,000 yuan in three years,the fraudulent means about R&D expenditure include: using affiliated companies to fictitiously cooperate in R&D contracts and inflate R&D expenditure;using R&D expenditure capitalization to inflate assets and profits;using false R&D materials to declare patents and falsifying site response visits,etc.In this paper,ten enterprises in the same industry are selected for comparison,and I try to analyze the fraudulent means of R&D expenditure of Beijing Blue Mountains Technology Co.one by one in terms of R&D expenditure,capitalization rate,intangible assets and patent right situation.And combined with GONE theory,I analyze through the perspective of R&D expenditure fraud and analyze the motives of its implementation of fraud from four perspectives: greed,opportunity,need and exposure.The analysis reveals that the greed factors of R&D expenditure fraud of Beijing Blue Mountain Technology Co.include: the distorted values and greed for immediate benefits of Blue Mountain Technology’s managers,and the accounting staff’s noncompliance with professional ethics.It is recommended to strengthen ethical education for managers and employees,promote entrepreneurial spirit,and clarify the social responsibility of corporate managers.Opportunity factors include: absolute control by major shareholders,managers holding several positions,lack of external supervision,and lax audit of patent rights and software copyrights.It is suggested to strengthen the communication between accountants and R&D personnel,refine the accounting treatment regulations of R&D expenditures by industry,pay attention to the performance of managers,improve the disclosure requirements of R&D expenditure information of high-tech enterprises on the NEEQ,and establish a sound spot-checking system.Factors needed include: enterprises to meet the conditions for upgrading to the selected tier in order to disguise themselves as high-tech companies and to obtain patent rights collateral financing.It is suggested to improve the IPO conditions appropriately,while broadening the financing channels of enterprises.Exposure factors include: low probability of R&D expenditure fraud being identified,failure of intermediaries to exercise diligence,insufficient punishment by the SEC,and difficulty in implementing punishment for those responsible for absconding abroad.It is suggested that CPAs should strengthen the auditing of R&D expenditures of high-tech enterprises,force the replacement of intermediaries during the IPO of enterprises,and should also continue to increase the penalties and improve the accountability system for those responsible for absconding abroad.I hope that the above suggestions can provide some references to prevent the occurrence of R&D expenditure fraud.