It is a serious illegal and unethical behavior for management to use the company's internal financial functions to conceal large-scale corruption activities. This behavior is usually carried out through a series of complex and hidden means. The common methods are as follows： 1. **Falsification of accounting documents** -**Fictitious transactions**: Fabricate non-existent business transactions out of thin air, such as false sales contracts, purchase invoices, etc. Taking a manufacturing company as an example, the management may fabricate a transaction to sell a large number of products to a fictitious customer, forge a complete set of documents such as sales contracts, outbound orders, invoices, etc., and count the corresponding amount into the sales revenue, and then transfer the funds out through other means. -**Tampering with credentials**: Modify the real business credentials, including key information such as the amount and business content. For example, if the actual amount of a small purchase invoice that actually occurred is tampered with into a large amount, and then the account is recorded according to the inflated amount, the excess amount will be embezzled and embezzled. 2. **Manipulate accounting accounts** -**Income is not recorded in the account**: Part of the company's income is concealed and not reported, and it is not recorded in the financial accounts. For example, an enterprise directly deposits some business income in a bank account opened in its personal name by setting up off-account accounts, or mixes the income into other current payments without normal income recognition and accounting processing, so as to achieve the purpose of embezzling this part of the money. -**Inflated expenses**: Deliberately exaggerate certain expenses and mix embezzled funds into normal expense reimbursement. For example, the inflated travel expenses of employees, business hospitality expenses, etc., through fictitious business trips, forged consumer invoices, etc., the funds obtained from the inflated expenses are taken for themselves. -**Asset misappropriation**: Transfer or sell the company's assets, such as fixed assets, inventory, etc., privately, and conceal them on the financial books. For example, the management privately sells the company's valuable equipment to related parties, and then through procedures such as forgery of assets for scrap and loss-making, the asset records on the company's books are written down, making corruption difficult to detect. 3. **Falsification of financial statements** -**Inflated profits**: Through the above-mentioned means of falsifying accounting documents and manipulating accounting accounts, revenue is inflated, costs and expenses are reduced, etc., thereby increasing the company's profits. This may attract investors, drive up the company's stock price, and at the same time create conditions for management to seek self-interest. For example, a listed company uses fictitious sales revenue and fictitious customer refunds to increase profits, and management may obtain high performance bonuses, stock option income, etc. From this. -**Concealment of liabilities**: Deliberately not disclosing the company's true liabilities, transferring or concealing debts, so that the company's financial situation looks better than the actual situation. For example, the transfer of the company's bank loans to the names of affiliated companies through special arrangements is not reflected in the company's financial statements, thereby reducing the company's asset-liability ratio and misleading investors and creditors. 4. **Abuse of internal control** -**Overriding approval procedures**: Management bypasses the normal financial approval process and approves major capital expenditures or financial decisions without authorization. For example, without the consent of the board of directors or the relevant approval agencies, it is privately decided to lend huge amounts of funds to related parties. After the funds are transferred out, they are used for personal investment or other illegal purposes, and the financial department still handles the accounts in accordance with the instructions of the management in the absence of compliance approval documents. -**Collusion with fraud**: Collude with the financial department or other key personnel to jointly commit corruption. For example, the financial manager colludes with the management. The financial manager is responsible for making changes in the accounts to cover up the fact that funds have been misappropriated, while the management obtains the embezzled funds, and the two parties distribute the benefits in accordance with the agreement. 5. **Transfer and concealment of funds** -**Related-party transactions**: Through unfair transactions with affiliated companies, the company's funds are transferred to related parties, and then taken from related parties to individuals. For example, selling products to related parties at high prices or purchasing raw materials from related parties at low prices causes the company's funds to flow to related parties, and then transfers the funds to management-controlled accounts through other channels of related parties. -**Overseas accounts and complex financial instruments**: Use secret accounts established overseas to transfer embezzled funds abroad, increasing the difficulty of tracking down funds. At the same time, with the help of complex financial instruments, such as derivatives trading, offshore trusts, etc., the true flow and nature of funds are further concealed, making it difficult for domestic financial audits to detect abnormal changes in funds. For example, by setting up a shell company abroad, using complex financial derivatives transactions, the company's funds are transferred layer by layer, and finally enter an overseas account controlled by the management. 6. **Exploit financial audit loopholes** -**Choose an audit institution that is not strict**: Management may choose an accounting firm that is closely related to itself and the implementation of audit procedures is not strict to conduct an audit, thereby reducing the risk of problems being found. These audit institutions may be perfunctory during the audit process, fail to fully perform their audit duties, and fail to conduct in-depth investigations and reveal major anomalies in the financial statements. -**Interfere with audit work**: During the audit period, the management interferes with the normal conduct of the audit work in various ways. For example, restrict auditors from obtaining necessary information and information, make unreasonable demands or exert pressure on auditors, and delay