Research On Income Fraud Of Beijing Blue Moutain Technology Based On CRIME Theory

In the 33 years since the establishment of China’s capital market,financial fraud incidents have emerged one after another,among which the most common type is income fraud.In the financial fraud cases from 2010 to 2021,income fraud cases accounted for 64.25% of the total number of financial fraud cases.The frequent occurrence of income fraud incidents has had a negative impact on the minority shareholders of listed companies,their creditors,intermediaries and the capital market,and urgently needs to attract the attention of the enterprises themselves,audit institutions and regulatory authorities.In recent years,the China Securities Regulatory Commission has continuously increased the supervision and punishment of fraud incidents,and audit institutions have also taken the response to income fraud as a key task,indicating China’s firm belief in curbing financial fraud of listed companies and maintaining the healthy ecology of the capital market.Zabihollah Rezaee believes that financial fraud is a crime,and the CRIME theory created can analyze the causes,identification and supervision of fraud more comprehensively than the traditional fraud triangle theory and GONE theory.This paper uses CRIME theory and takes the revenue fraud incident of Beijing Blue Mountain Technology as a case,and analyzes the causes,implementation methods and consequences of the fraud incident from five aspects: fraud actor,fraud motive,fraud means,fraud consequences and supervision mechanism.Through analysis,it is found that Beijing Blue Mountain Technology’s income fraud behavior is reflected in the weak legal awareness and lack of integrity and moral values from the perspective of the fraudster.Fraud methods mainly include inflating bank deposits through false bookkeeping,using hidden related parties to fabricate transactions,and using real customers to exaggerate the scale of purchase and sales;In terms of fraud motives,there are financing pressures caused by poor operating conditions,high performance pressures affecting the select tier,and pressure on major shareholders to maintain control caused by equity pledges;In terms of regulatory mechanism,there are internal problems such as "one share dominating",unreasonable governance structure,and serious deficiencies in internal control,as well as external problems such as the difficulty of CSRC’s inspection,insufficient inspectors,and failure of intermediaries to exercise due diligence.In terms of consequences,Beijing Blue Mountain Technology’s revenue fraud has had a negative impact on the company itself,intermediaries,and the NEEQ market.Finally,according to the CRIME theory analysis,the causes,means and consequences of Beijing Blue Mountain Technology’s income fraud are proposed.For the enterprise itself,it is necessary to establish a corporate culture of integrity and truth,improve the legal awareness of internal employees,optimize the company’s equity structure and governance structure,improve the internal supervision mechanism,and establish and improve the internal control mechanism.For audit institutions,certified public accountants should strictly implement audit procedures,improve their professional competence and strengthen the construction of professional ethics.At the same time,the regulatory authorities should optimize financing channels to curb the incentive of enterprises to commit fraud,increase the number of inspectors,strengthen the audit team,improve the professional ability of inspectors,and strengthen the moral construction of inspectors to strengthen the supervision of enterprises on the New Third Board.