Case Study of Financial Fraud at Dongfang Group and Implications for Auditing

Jing Hu

doi:10.62177/apemr.v3i4.1577

Authors

Jing Hu Xi’an Polytechnic University

DOI:

https://doi.org/10.62177/apemr.v3i4.1577

Keywords:

Oriental Group, Financial Fraud, Trade Financing, Audit Failure, Audit Implications

Abstract

In 2025, Orient Group Co., Ltd. was subject to administrative penalties by the China Securities Regulatory Commission (CSRC) and had a mandatory delisting procedure initiated for major violations after it was found to have inflated its operating revenue by 16.13 billion yuan over four consecutive years through financing-based trade and circular trade schemes, marking yet another major financial fraud case in the A-share market.This paper provides a comprehensive review of the fraud’s background, methods, and consequences, and employs the Fraud Triangle theory to analyze its motives. It focuses on examining why Dahua Certified Public Accountants issued “unqualified opinions” for three consecutive years from 2020 to 2022, and concludes by offering insights and recommendations from an auditing perspective to prevent similar fraud.

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