C167 167 Financial fraud scandal

Mo Nuan spent the entire weekend in the courtyard, and on Sunday night, the driver of the courtyard sent her back. Looking at the wedding photo of the two, Mo Nuan's heart went soft, and at night, Lu Chen continued to call and talk to her, and in the end, she pestered Lu Chen to sing a song.

The next day, when Mo Nuan came to the office, there were a few people making trouble outside the door. The security guards were busy with them, upon hearing them, they actually cursed at the office.

"I've always believed in EMs, but this is how you fool the masses. Now that Huaran Corporation has gone bankrupt, the money that I've worked so hard to earn over 20 years is gone. The company's finances were forged into something like that, yet you guys still shamelessly said that there's nothing wrong with their financial reports …"

"That's right. Don't tell us that you guys didn't notice anything. What's with your profession …"

"You just don't report it, completely disregarding the interests of us investors."

The mood of the person who spoke was very agitated and the scene was also very chaotic. Mo Nuan could vaguely tell that some people who had failed in selling their stocks were causing trouble, but she did not know what exactly had happened.

A security guard on the side recognised her and hurried her upstairs, "Miss Mo, hurry up. Now, these people are very agitated, and I'm afraid they might do something bad. Go up and tell your colleagues not to come down."

Mo Nuan nodded, without further hesitation, she immediately headed towards the elevator.

When she passed the conference room, Mo Nuan noticed that there were a lot of unfamiliar faces, they were the higher ups of the firm that she rarely saw. Wu Hao and the few project managers were all present, all of their expressions were serious, as though they were convening an emergency meeting.

Mo Nuan also felt that the atmosphere was a little unusual today. Everyone was dejected, without a trace of spirit, they asked their colleagues in confusion, "What happened today?"

A female colleague handed a newspaper to her with a pale face, "Little Mo, you'll know after reading it."

Only after Mo Nuan read yesterday's newspaper did she realize that the Hua Ran Corporation had launched their first ever financial fraud scandal in the country. The management had been accused of neglecting their duties for the past three years and had continued to paint their financial statements, attempting to obtain private property by misleading investors.

Hua Ran is their annual audit client, and now that the scandal has come out, the firm is in danger of suing.

After Mo Nuan saw this, she became silent, this kind of thing being exposed, it was unprecedented. Most of the firms would choose to cancel their contracts when their customers were dishonest, and reduce the risk to themselves.

Mo Nuan knew about the Hua Ran Group, it was a large gas production group in the country. The momentum had increased rapidly in recent years and the price of the company had continued to rise, attracting many investors to invest in it.

After a while, Sun Xue had finished holding a meeting and came over. With a cold expression, she said to everyone, "Calm down your emotions first. Stay up there and don't go down."

After she finished speaking, she gave Mo Nuan a meaningful glance. Mo Nuan knew that she had something to say to her, and followed her into the office.

"Xiao Wen, did you see yesterday's news?"

"I was at Lu Family's side yesterday and didn't see the newspaper. I just saw it."

Sun Xue nodded her head, she could not help but ask in a low voice: "Sister Xue, does the firm know about this matter?" Those who participated in the audit were all people with exceptional professional skills. Logically, they should have been aware of such an obvious matter. How could they have allowed such a situation to develop so freely?

Sun Xue sighed, then nodded her head, "The Hua Ran Group's finances have had problems a few years ago, and this has nothing to do with their corporate culture. Their management is too eager to make quick gains, with the goal of pursuing high profits, high stocks, and high growth as the business goal, everything is aligned with the profit, and in the past few years, the flow of people in the managers have changed a lot, so if something happens, it will happen sooner or later."

Mo Nuan frowned, "Then why did the firm accept such a client? Why didn't they cancel the contract earlier?"

According to the domestic bankruptcy law, the first thing that the Huaran Corporation should do after bankruptcy was to pay taxes and pay the salaries of its employees. The assets that were originally worthless were not given to ordinary public investors, so it was no wonder that there would be someone who would cause trouble at the firm.

Sun Xue threw up her hands, "This is a decision from the upper echelons, we cannot make a decision, they must have started out to benefit each other, but seeing that the hole is getting bigger, I think they are afraid, and plan to cancel the contract this year, but unfortunately they did not manage to do so."

After pausing for a moment, Sun Xue continued, "Xiao Wen, you haven't been in the office for long, I'm not sure. Our firm has also taken on the accounting work for many of the branches under the Hua Ran Group, and was even hired as Hua Ran's internal auditor. They are fully responsible for Hua Ran's consulting work, and even the audit manager in our project group was Hua Ran's former financial director."

Mo Nuan took in a deep breath of cold air. The firm had dared to do this, this was a serious violation of the auditing standards concerning independence, the consequences were unimaginable, if all of this could be proven, then it would mean that the firm and Hua Ran had colluded and cheated, this was not only a matter of being sued for compensation, the entire firm would be facing bankruptcy.

This completely undermines the audit industry's reputation as a public investor.

"Xiao Wen, I only told you about this because I see you as a friend. If you still want to continue working, you can start looking for your next home. The firm's bankruptcy is inevitable." Regarding this point, Sun Xue wasn't worried about Mo Nuan, she just felt that it was necessary to give him a reminder.

Mo Nuan's work ability was not bad, not to mention that her husband and her biological father still had that kind of identity, so no matter what direction she took, it wouldn't be a problem.

Mo Nuan was also not worried about this problem, she only felt that it was a little uncomfortable. Initially, she only chose this firm because it was flourishing, unlike the four great institutions which had already reached a certain scale, where their development would be slower, she just did not think that there would be such a dirty deal behind this.

"I'm fine. What about you, Sister Xue? You're fighting with Zheng Lai for the custody of the child. Nothing can go wrong." Mo Nuan looked at Sun Xue worriedly.

Sun Xue patted her shoulder, "Relax, I'm fine, I have heard about this matter and have some connections. I have already reached a secret agreement with other companies, in the future, if I want to spend more of my time on Xin Er, I will go to another company to be their treasurer, the treatment the company gets won't be much worse than right now, and it won't affect Xin Er's ability to take care of her children. The lawyer that your husband recommended is very capable."

Hearing Sun Xue's words, Mo Nuan felt at ease.