Case Study Of Easy Visible Supply Chain Management’s Financial Fraud Based On The Perspective Of Supply Chain

With the development of innovative application of supply chain management,more and more public companies such as Rendong Holdings and Chengxing Group started to employ supply chain finance to complicate their operation so as to hide their signs of financial fraud because the supply chain system is relatively closed,quite many upstream and downstream enterprises are involved,and the trade relations are quite complex.Whereas financial fraud cases tend to be serialized,featured with longer fraud period,larger amount of money,wider range of negative influence,and greater difficulty to be supervised,financial fraud of this type will be paid more attention to.Meanwhile,recent research on financial fraud has laid more and more emphasis on the link between the characteristics of individual fraud case and features of the industry which the company belongs to and has extracted typical means and signs of financial fraud to help identify the clues of potential frauds in different industries.Nowadays,few studies on financial fraud are linked with supply chain operation,which has become a typical tool of financial fraud.Studies on typical examples of financial fraud relating to supply chain management and finance can help investors avoid the risk of financial fraud to some degree and also bring enlightenment to the inspection of fraud for regulators,which may contribute to advancement practically and theoretically.The fraud case of Easy Visible Supply Chain Management is selected as the research object where it overstated its income scale based on the closed supply chain system.After sorting out the new definitions and past research achievements of supply chain and financial fraud,case study method is employed to find out the clues,clues and influences of the case of Easy Visible Supply Chain Management.Drivers of fraud will be discussed from muti-perspectives.Next after the layout of the origin and development of the case,financial ratios are compared to analyze the operational difference between Easy Visible Supply Chain Management and its powerful competitors in the same industry to find out the contradictions behind its perfect financial result so as to unveil its disguise.Then the features of fraudulent means in the supply chain industry are studied.Finally,suggestions are given out from the perspectives of inspectors,market participants,and technology application.To handle frauds of this type,regulators need to promote the continuous improvement of the institutional environment.They should also keep an eye on the practice of new complex business models and updated regulation against them.Enhancing investor education is also an important issue to control the consequence of frauds.As for the customers and suppliers of supply chain management companies,the participants of supply chain system need to pay attention to the ecological quality of the supply chain system.At the same time,they should strengthen the qualification examination of supply chain management companies,including their core customers,management abilities regardless of superficial gimmicks.Besides,in the digital era,the data of companies is gradually digitalized and advanced technology can be employed to notice potential problem in advance.So digital technology is still feasible to identify the upstream and downstream credit risks of the supply chain.Therefore the technology can provides support of forecast based on data analysis and comparison.However,objective regulators from the third parties are needed to verify the authenticity of the application of digital technology,so as to avoid the occurrence of pulling strings like Easy Visible Supply Chain Management...