Research On Financial Statements Of Listed Companies

During 2001 our government spends great efforts in the supervise of securities business. In the course, many problems are disclosed, such as fake accounts, appropriation of capital, mendacious profits, confused property right and inside deal etc. Those problems influence our securities business greatly, and all of them come from financial statements provided by listed companies. For this reason, this paper began from the analysis of the importance of financial statements of many listed companies, and came to the conclusion that there are three major problems in listed companies' financial statements, those problems lie in the criterion system of financial statements, the process of putting forward statements and audited reports by CPA. Subsequently this paper analysis their causes from exterior and internal aspects. Firstly, many exterior facts, such as imperfect legal system, inadequate supervise, dubitable auditing quality, securities operators' skullduggery for qualification of securities exchange etc, lead to current conditions; Secondly, there are also problems inside listed companies. For example, the information provided is always not in time, and is of low pertinence; Interior control system is not perfect etc. On the basis of the research above, this paper reached its conclusion in the end: to improve the quality of financial statements, five measures should be taken. Those measures are listed below: 1.consummate current criterion system, observe it strictly, and punish behaviors against it; 2.perfect company governance structure; 3.improve information quality; 4.enrich useful contents included in statements; 5.enhance auditing quality.