Listed company's accounting fraud of the Causes and Prevention1773

Listed company's accounting fraud of the Causes and Prevention        ABSTRACT from the analysis of accounting information distortion that is illegal, because the accounting fraud, manifestations and hazards start to analyze the accounting fraud of China's listed companies the motivation to find out the real causes of the accounting fraud, and through drawing and learn from foreign countries in the prevention and treatment of accounting fraud experience, to present my accounting fraud prevention and treatment response.         Key words listed company; accounting fraud; Governance         1, the listed company's accounting fraud and harm the performance of the form         (A) the manifestation of accounting fraud         1. Fictitious business activities.         Listed companies, the most common means of accounting fraud, namely through the fictitious transactions, increasing sales revenue or other income, and inflated assets. Such methods often need to forge economic contracts to cope with bills, tax invoices, customs declarations and a series of legal documents, which not only had violated accounting rules is contract law, tax law and other important economic laws and regulations of the open defiance and provocation, is of a serious nature economic crime.         2. Manipulation of related-party transactions.         Fraud, fictitious companies, apart from economic activity, more by way associated with particular transaction, such as debt restructuring, asset replacement, non-monetary transactions, etc. to achieve the purpose of manipulating results. In a normal transaction of the related-party transactions is justified, earlier this without too many restrictions and regulations, but in recent years, an increasing number of listed companies by the trade name, line of actual control.         3. Accounting methods distort.         Compared with the first two types, the use of some special methods of accounting distortions reflect the business situation, manipulation of accounting information of false acts were committed abroad in cases of accounting fraud is more prevalent.         (B) the hazards of accounting fraud         Intensified the listed company's accounting fraud had been to the country's economic, political, and cultural fields caused immeasurable losses.         1. All kinds of departments for distortion of accounting information will lead to macro-decision-making out of control, seriously affect the industrial structure optimization, the rational allocation of social resources and the orderly flow of weakening the authority of state laws and regulations, and have serious social economic problems.         2. The impact of accounting information users make the right investment decisions, damages the interests of investors and creditors, and has hit investor confidence and affect the healthy development of capital markets and undermine the investment environment.         3. Resulted in state tax revenue and a huge loss of state-owned assets, affecting the management of production and operation to make the right decisions, undermining the normal production and operation enterprises.         4. Disrupt the market rules of the game, increased market speculation and market volatility, severe damage to primary and secondary equity.         5. Accounting fraud contributed to a variety of corruption and unhealthy trend. According to statistics, China's due to fraud and corruption resulted in economic losses and consumer welfare losses are estimated annually 978500000000-12 between 57 billion yuan, accounting for 13.6% of China's GDP of around 16.8%.         All these have seriously affected our normal social and economic order, and hinder China's market economy and a steady, healthy and rapid development.         Second, the accounting fraud cause analysis         (A) lack of clarity of property rights         The reason why China's current accounting fraud to become a common phenomenon, one of the causes is the enterprise business system in transition, the relationship between property ownership are not clearly defined, leading to the original functions of supervisory authority has been weakened, but on behalf of corporate property rights monitoring body has not been established. Therefore, the problem of accounting fraud will be more prominent.         (B) inadequate corporate governance structure         As the shareholding structure of China's stock market congenital defects, so that listed companies in China and Western countries are generally characterized by state-owned shares 'due to the dominance' of the shareholding structure, thus resulting governance structure of listed companies, including shareholders, board of directors, board of supervisors of mutual checks and balances between the distorted.         (C) the accounting legislation is not perfect         Since December 1990 China's Shanghai Stock Exchange since it