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CHU: China Unicom accounting problems (article)

China Unicom to receive 4 years of false invoices 14 million was ordered rectification

http://www.cnkeyword.info/china-unicom-to-receive-4-years-of-false-invoices-14-million-was-ordered-rectification/

2011-05-23 01:00:09 Source: First Financial Daily (Shanghai)

National Audit Office recently issued on the financial revenue and expenditure of China Unicom in 2009 results of the audit pointed out that China Unicom in accounting, related party transactions, some materials procurement and management and other aspects and other issues not standardized and strict, requiring China Unicom to rectification.

Learned that the focus of the audit of the Audit Commission headquarters of China Unicom and 8-owned companies, with assets 280.525 billion yuan, accounting for 54.71% of total assets of China Unicom.

Audit report, China Unicom in the accounting and financial management problems. Mainly related to early recognition of income, consolidated accounting statements do not complete this Part and inaccurate cost-sharing listed companies as well as advertisers and agencies issuing false invoices and other issues.

Audit owned by China Unicom 4 enterprises from 2006 to 2009 part of the invoice for spot checks and found that advertisers and agencies related to the amount of false invoices issued a total of 14.0081 million yuan.

China Unicom also bidding in the project problems. The main problems are: 5 companies owned a significant part of the procurement and tendering for public works projects is not the end of 2009 involving a total amount of 1.881 billion yuan.

Audit opinion on the audit for the evaluation of subordinate enterprises involved in China Unicom’s major problems, China Unicom issued a statement to respond, the problem of the company’s past results of operations, financial reporting, internal control audit opinion and evaluation of no significant impact, the company has with the state Audit Commission’s audit process active rectification.

For individual advertisers and agencies to provide false invoices to the company issues and China Unicom to investigation of its real economic activity, the company has to call for specifications and make the replacement invoices and invoices in the Group-wide compliance checks carried out, developed “on the invoice and other external instruments to further strengthen the management,” which were targeted training to enhance capacity for the identification of false invoices, the invoice management process to further refine the system and the establishment of the blacklist.

Editor: NF018 ( First Financial Daily Author: Liu Jia)