Tesco Fell Inside The False Account Door Revealed Five Executives Were Suspended

Huarun's acquisition of Tesco China stores is drawing to a close. Consumers find that Tesco's products are already being sold in Huarun million homes.

But Huarun is a little bit unhappy because their partners are exposed to financial fraud and Huarun's performance is likely to be affected.

Tesco, the UK's largest chain supermarket group, has announced a profit of 1 billion 100 million in the first half of its performance forecast.

But a few days later, Tesco corrected and expected to earn only 850 million pounds.

Under pressure, the company CEO Peter DELL has admitted that there is a false profit of 250 million pounds.

"We found that 250 million of the profits were inflated, and the company has set up an investigation team. It may be the British food business department, which appeared" early revenue and delayed computation cost ".

It is understood that the financial fraud was disclosed by internal whistle blowing. At present, the Tesco board has suspended 5 senior executives, although they have tried their best to exaggerate the matter into personal behavior, but they have not been able to lighten the reaction of the capital market.

Since the scandal broke out, Tesco shares have been down, and even Buffett, the stock god, has recruited him. He owns a stake in Tesco 4% and has lost nearly $1 billion in investment.

Several major shareholders of Tesco agreed to support the issue of shares and subscribe to shares so as to support stock prices.

Tesco's false account has caused an uproar. How can the accounts of such a large multinational company have such a large amount of water under the financial accounting and internal and external audit?

Zhang Zefeng, a financial officer of a foreign company, said that the company's financial water is very deep and there are many ways to inflate profits.

"Basically, it is about making a statement around the balance sheet and profit statement, forgery of revenue, shipping evidence, sales evidence, and inflated revenue. There is no customer and no delivery at all.

They increase revenue by forging invoices and documents.

In addition, in terms of cost, we should postpone recording the cost and postpone the cost to the next year.

There are many cases of domestic financial fraud. The main board has notorious silver Guangxia, the small and medium-sized board has a bad plot of green land, and the Wanfu branch, which once carried the aura of "the first batch of rice processing", acknowledges that financial fraud has become the first share of the gem.

Among them, Wanfu Sheng branch's performance water injection has reached an alarming level, with a profit of 90%.

Zhang Zefeng, a finance officer of a foreign company, said that many profits were inflated through the paction of related companies.

"Because it's a related company, so the controlling power is in the same person's hands, and the two men are listening to him.

He can move the money over and over. The account says the sales of goods are collected, and the money is considered to be a purchase, but there is actually no goods, which can be included in the future cost. "

Due to the pressure of performance, the company's internal financial personnel may move their accounts through various means to make a beautiful report.

However, according to the requirements, listed companies need to hire third party audits to check accounts. Do these professional outsiders fail to see any problems?

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The audit company of the service is PWC. Despite the medium-term forecast, Pu Hua just reviewed, but the nominal increase of 250 million did not make the company lose face.

However, the senior auditor of PWC China said that it was difficult to make 100% of the audit to ensure that the accounts were correct.

"10 billion, the audit cost of the company with a stock balance of 2 billion is 1 million.

In this case, I sent a team of 10 people at most, but faced 2 billion of the inventory.

If it's gold, that's fine. Let's all take stock of it; but if it's a back hill tree, a mountain of coal or screws, a complex, scattered amount of inventory.

It is impossible for us to put it all over again. We can try to estimate the total by sampling according to the method.

If there is no problem with the sample, after the calculation, we will say that the whole is no problem, or the problem is very small.

in order to

Financial fraud, Tesco hired another audit company DDT, launched an independent investigation.

Prior to this, PWC has served Tesco for 13 years.

Ms. Lin, who has 7 years of audit experience, said that the longer it worked, the easier it would be to neglect it.

"For a long time, auditing procedures are the same all the year round. I can't pay much attention to its changes.

If the audit procedure can do enough, it will be able to detect problems.

However, there is still a deliberate concealment of senior executives. The problem of sampling proportions will affect audit results.

At present, Tesco has postponed the release date of the first half of the financial report to October 23rd.