Case Study On Financial Irregularity Of The GZ Company

Financial data can reflect the operating condition of the enterprise.Seasonal variation in different industries and actual operation problems of enterprise could cause financial data fluctuating irregularly.Financial data manipulation causes the financial statements to be unreasonable.There are several reasons for financial data fluctuating irregularly,such as a good financial statement is needed for enterprises to meet financing demands.On the other hand,the importance of internal control in enterprise management activities is becoming more and more prominent,the failure of internal control will cause the enterprise to lose its effective barrier for preventing and resisting risks and the financial data to fluctuate irregularly,so that it will affect the operating condition and value creation of enterprises.Therefore,the scientific,healthy and sustainable development of enterprises cannot be guaranteed.The thesis bases on it investigated on that directors and senior executives in GZ company for its suspecting noncompliance of disclosure by the CSRC in 2017.After elaborating the background and the significance and carding the relevant literature at home and abroad,the thesis introduces the basic situation of GZ company and reviews the incident about the CSRC investigation.Then the thesis systematically analyzes the performance,causes and effects of financial irregularities of GZ company.The thesis analyzes the reasons for financial anomalies of GZ company in terms of the defects of internal environment and risk response.Further analysis to explore the influence on company itself and the accounting firm which caused by the financial anomalies of GZ company.Final relevant conclusions come out: according to the enterprise financial information and non-financial information to identify whether there are enterprise financial irregularities.Improving the company’s internal environment and strengthening the internal control of major business activities can reduce the enterprise financial anomalies.The thesis could make accounting information users improve the ability of identifying the financial irregularities companies,and provide some reference for the same industry and the same company about how to establish effective internal control to reduce financial irregularity behavior,so as to promote the long-term healthy development of enterprises.