Case A: Identifying the Company's Profit Manipulation Behavior
I. Relevant financial data of the company
For the convenience of explanation and analysis, according to the information disclosed in the accounting statements and notes of the Company in 2000 and 200 1, the relevant financial data are arranged as shown in the following table 1:
Second, the analysis of the company's relevant financial data
From the above data, we can easily calculate that the inventory turnover times of the company in 2000 and 200 1 year were 2.04 times and 2.57 times respectively, that is, the time taken for inventory turnover once was 179 days and 142 days respectively. The author believes that as a large commercial enterprise located in the provincial capital city, such inventory turnover rate is very abnormal. In order to verify the judgment, the author specially collected the relevant financial data of commercial listed companies in the past two years. After calculation, the inventory turnover times of some companies in 200 1 and 2000 were Xidan Shopping Mall (4.73 1 and 4.567), Wangfujing (2.93 and 2.93), Chongqing Department Store (1 1.09 and 8.2) and Lanzhou respectively. 14.59), Shanghai No.1 Department Store (14.8 1, 15.73), Shanghai Yuyuan Garden (2.94, 4.54), Wuhan Zhong Bai (4.89, 3.53) and Dalian Friendship (/kloc)
After comparison, it is not difficult for us to draw a conclusion that this company's inventory turnover times among similar listed companies in China are obviously low, which seems to be suspected of profit manipulation. Theoretically, there are only two possibilities, either the quality and price of the inventory are inconsistent, and the realization is invalid, or the cost becomes virtual and the inventory is unreal. In actual contact and communication, I learned that the real reason is the former. It turned out that the company invested in the inventory at that time at the evaluation value during the listing process, but the actual selling price was lower than the book cost. In order to ensure the profit index, simply put this part of the inventory in a special warehouse and not sell it for many years. From this, it is not difficult to draw a conclusion: whether it is from the perspective of market-oriented operation to deal with the backlog of goods in time, revitalize existing assets and monetary funds, or from the perspective of accounting, according to the requirements of the Notice on Printing and Distributing Supplementary Provisions on Accounting Treatment in the Accounting System of Limited by Share Ltd [1999] No.35, and according to the actual situation, the accounting of the company is theoretically against the principle of prudent accounting.
Next, we infer the reliability of the aging of "other receivables" disclosed by the company based on the above relevant information. Starting with the cash flow, the relevant amount of monetary funds at the beginning of the year and the internal cross-checking relationship between projects, it can be calculated that the maximum amount of "other receivables" that can be formed by the sum of monetary funds at the beginning of the year and the net cash flow this year is 72,707,820.7638+0 yuan if other cash received and paid in 2000 is not considered; If other cash receipts and payments related to production and business activities are considered, the maximum amount of "other receivables" formed by the sum of monetary funds at the beginning of the year and the sum of net cash flow this year is 365,438+0,565,438+065,438+0,654,38+085.85 yuan. In both cases, the results are far lower than the other receivables disclosed by the company within one year of 24 1 383,898.69 yuan, that is, the monetary fund balance at the beginning of the year and the cash flow formed in that year are not enough to form the amount of other receivables disclosed by the company within one year. From this perspective, the disclosure of this age is questionable. Similarly, let's measure the situation of 200 1. If other cash receipts and payments related to production and business activities are not considered, the maximum amount of "other receivables" that can be formed by the sum of monetary funds at the beginning of the year and net cash flow this year is 29,065,438+02,986.69 yuan; If other cash receipts and payments related to production and business activities are considered, the maximum amount of "other receivables" that can be formed by the sum of monetary funds at the beginning of the year and the sum of current year's net cash flow is 9,279,539,438+0 yuan. The results obtained in both cases are also far lower than other receivables disclosed by the company within one year, 264 yuan199,605.438+08 yuan. Obviously, the division of the aging of other receivables in this year is also suspected of manipulation.
Theoretically, if the above judgment holds, the company artificially increased the proportion of other receivables within one year in order to reduce the provision for bad debts and inflated profits. After communication, the company accepted the author's judgment, that is, as long as there is a new debit amount in each detailed account of other receivables in the current year, the aging of the detailed account will be confirmed within one year. The "Answers to Questions on Implementing the Accounting System for Enterprises and Related Accounting Standards" issued by the Ministry of Finance clearly stipulates: "When the provision for bad debts is made by aging analysis, after receiving part of the debts repaid by the debtor in the current period, the remaining receivables should not be changed, but should still be determined according to the original aging plus the aging that should be increased in the current period; If there are a number of receivables with different aging, if part of the debts repaid by the debtor unit in the current period are received, which receivables should be determined one by one; If it is really uncertain, it shall be determined according to the principle of first occurrence and first recovery, and the remaining receivables shall be aged according to the same principle mentioned above. "
Case B: Reasoning Analysis of Financial Fraud in a Company
I. Decision of the Ministry of Finance on Administrative Punishment of Joint Stock Limited Companies
In 2002, the board of directors of a company announced that a few days ago, the company received an administrative penalty decision from the Ministry of Finance, requiring the company to rectify the behavior that does not conform to the accounting law and accounting system within a time limit, and at the same time impose a fine of 654.38 million yuan. The announcement also stated that from September 20065438 to February 20065438, the Ministry of Finance inspected the implementation of the Accounting Law in 2000 and previous years. The inspection results show that the company's income in 2000 and previous years was 367 1.7 million yuan. According to the announcement, the company capitalized the interest expenses that should be included in the financial expenses, and underestimated the financial expenses by 49.45 million yuan; At the same time, due to the untimely transfer of fixed assets after the completion of the project, the inaccurate depreciation start month and improper classification of port facilities and equipment assets, the depreciation was reduced by 7.8 million yuan in 2000; In addition, the company's confirmation of the construction in progress is not accurate, and a number of assets1998 ~ 2000119.39 million yuan.
Second, the reasoning analysis of the company's financial situation
According to the data disclosed by the company, the total inflated profit of the company in 2000 and previous years was 424.42 million yuan (the after-tax net profit calculated by income tax rate 15% was 360.76 million yuan), while the total net profit of the company in 2000 was 36013600 yuan. That is to say, according to the handling method of the Ministry of Finance, the company's profit and loss in 2000 and the previous two years were basically balanced. In 20001and the first half of 2002, the company realized net profit of 48.39 million yuan and 32.97 million yuan respectively. What about the performance reliability of 200 1 and the first half of 2002? Comparing the publicly disclosed financial data of this company from 1998 to the first half of 2002, we can find the following set of data: (see table 2)
From Table 2, it is not difficult for us to draw the conclusion that the company has "no revenue growth". In the second half of 2000/kloc-0, although the throughput was 5.7 million tons, the actual loss was 5.2 million yuan (the company realized a net profit of 53.59 million yuan in the first half of 2000/kloc-0, while the annual net profit of 2000/kloc-0 was 48.39 million yuan); In the first half of 2002, the throughput was 6.93 million tons and the net profit was 32.97 million yuan, which shows that the performance is capricious. Although the tonnage rate dropped from 32 yuan in 1998 to 24 yuan in 200 1, the throughput increased by 93% from 5.75 million tons to 1,110,000 tons. It can be seen that its loading and unloading income is actually increasing year by year, so the main reason for "no increase in increment" should be "increase in depreciation expenses and financial expenses of fixed assets" (see Table 3):
From the above table, we can easily find that the company's "other income" is not proportional to the throughput. 1999 "other income" was 10,/10 10 yuan, while 1998 and 2000 were only 74.08 million yuan and 63.02 million yuan respectively, and in 2006 it was 54.38 million yuan. According to the company's 1999 prospectus, "other income" includes shipping agency fees, storage fees, container handling fees, shipping service fees, reverse freight, overtime pay, railway use fees and ship dispatching fees. There should be a positive correlation between these costs and throughput. In this way, the company seems to have the possibility of manipulation in "other income".
In addition, through the relevant information publicly disclosed by the company, we can find the following data: since 1997, the company has raised 409190,000 yuan through equity financing (234 million yuan for A shares and 0/7,5190,000 yuan for B shares), with a net increase of 65,438+. Since 1998, the company's net cash outflow from investment activities has reached14,900,600 yuan. On June 30, 2002, the total fixed assets increased by1170.55 million yuan compared with the beginning of 097.
At this point, can we boldly speculate that the company may manipulate profits by inflating the income and cash flow of operating activities, while inflating fixed assets or projects under construction? Next, let's compare this company with other listed companies in the same industry.
As can be seen from Table 4, the turnover rate of total assets in the same industry in 2000, 200 1 and the first half of 2002 were 0.22, 0.28 and 0. 14 respectively, while the amount of this company was 0. 14 and 0.1/kloc-respectively. In addition, we noticed that by the end of 200 1, the company's total assets were 2.96 billion yuan, including fixed assets1.85 billion yuan; The total assets of Tianjin Port are 28 1 100 million yuan, including fixed assets175 million yuan. The assets of the two companies are roughly the same, but in 200 1 year, Tianjin Port achieved revenue of 1 billion, and the company only had 280 million. Yingkou Port, the second IPO, achieved a revenue of 200 million yuan in that year, but its total assets were only 390 million yuan, including 340 million yuan in fixed assets. It is not difficult to see that the company's asset utilization efficiency is obviously low. So is the low asset utilization rate due to management problems or the authenticity of the asset amount? Next, let's compare the ratio of main income to net fixed assets of some listed companies in the port industry in 200 1 year, as shown in Table 5:
As can be seen from Table 5, the main income of the company is 40% of the average level of the same industry, but the fixed assets are 157% of the average level of the same industry. At this point, we have reason to infer that the company's fixed assets are suspected of inflated. Then, if the reasoning of the company's inflated fixed assets is established, by what means can it be carried out?
Finally, let's take a look at the quantitative relationship between the net profit realized by the company in recent years and the cash flow of production and operation:
Obviously, the net cash flow of the company's operating activities is higher than the net profit, especially in 200 1 year, and the difference is as high as 10663 million yuan. In this way, we can boldly infer once again that the company may increase its business income by inflating monetary funds or accounts receivable, and then inflate its fixed assets by inflating monetary funds, so that its total assets turnover rate and fixed assets turnover rate are significantly lower than the average level of the same industry. The author noticed that after the company's fraud was exposed, some media reported that as of the end of 1999, the company's book monetary funds were 456.93 million yuan, of which 213.67 million yuan was fiction. Since 2000, fraud has mainly focused on fixed assets and projects under construction. 200 1 inflated bank deposits through inflated construction in progress (author's note: the total fixed assets at the end of 2000/kloc-0 increased by 402.78 million yuan compared with the end of 2000), so by the end of 20001,the fixed assets and construction in progress increased by 34,668.
At this point, we have basically inferred the basic formation process of the conclusion made by the Ministry of Finance on corporate financial fraud.
In a word, the profit manipulation behavior of the company can be identified by using the cross-checking relationship between the report and the related items in the notes to the report. In addition, the calculated current ratio and quick ratio are revised by calculating the turnover rate of accounts receivable and inventory, and the depreciation of fixed assets and amortization of intangible assets listed in the notes of the cash flow statement are compared with the original values of fixed assets and intangible assets in the balance sheet. These are very effective methods to identify the reliability of accounting statements. Strengthening the professional judgment ability through these methods will undoubtedly greatly improve the professional ability of certified public accountants, improve the audit quality and reduce the practice risk.