#Hidden means of improper financial behavior by business managers Business managers may conceal long-term financial misconduct through the following internal control defects and accounting manipulations: ## Internal control defect utilization -Establish an overly centralized decision-making structure to avoid the normal approval process -Set up special purpose entities or offshore accounts to avoid supervision - Conduct inadequately disclosed transactions with related parties -Restrict the authority and resources of the internal audit department -Weakening or controlling the reporting mechanism ## Manipulation of financial statements -Improper income recognition (confirm income in advance, record fictitious transactions) -Delayed or hidden expense records -Inappropriate asset valuation and reserve adjustment -Use complex transaction structures to hide liabilities -Misclassification of operating and non-operating items In view of these issues, the supervision of independent directors should be strengthened, a strict internal control system should be implemented, the independence of internal audit should be guaranteed, and a sound reporting protection mechanism should be established.