Thinking Of The Governance Of Financial Report Fraud And Crime At Listed Company In China

The paper contains on exploration of managing the problem of the financial report fraud and crime at listed company in China. In history of auditing, the fraud question of financial report is the problem for auditing circle all the time. From the first financial report of listed company practicing fraud and making the case in the world -Company incident, the South Sea of Britain, to near future appearing such as: Enron, Communication of the world, Xerox, Global telecom, Southern health care, etc. the financial report practicing fraud and crime phenomenon has not disappeared all the time . It commented on: not long ago, the accountancy was still a dry as dust thing , but now, with the constant increase of company1 s figure with involving in the accountant and making the fake, it has already been turned into a hot political and economic topic .In China, in the past ten years, the stock market experiencing scratch, balance, fast, sound development, has obtained considerable development. However, just like foreign countries, the crime phenomenon is quite serious in our country. Practicing fraud, has already become a great hidden danger of our economic development especially of our of security market.Numerous financial report practice fraud crime incident have caused western theory circle, especially accounting field lasting concern of the issue, and formed a large number of research documents. The research has great reference function to ourselves, In our managing practice, there are the following two kinds of trains of thought mainly: " the system is given a new lease of life to " and perfecting the accounting regulation. This paper thinks that the crime question is a complicated system, and it is unable to improve the efficiency of managing only from a certain respect, a certain angle.This paper has four parts. The first part of the paper introduces the correlative definitions of financial report practicing fraud and crime.The second part of the study analyzes the causes which lead to listed company's financial report fraud. After deep analyses, it exposes these facts : Three unbalanced characteristic of agency are prerequisite; Internal corporate governance imperfect form soil of crime; CPA can't scrupulously abide by the duty , " economic police '"s function fails to give full play to; The laws and regulations are imperfect, the crime that practice fraud for the financial report is with the opportunity; Sincere morals lose is important factor.The third part of the paper comment on "Sarbanes-Oxley's Act of 2002".The last part of the paper puts forward the measurements according to Chinese facts: Perfecting the system of Accounting Disclosure of listed company; Optimizing the structure of stock right, establish the foundation for perfecting the corporate governance; Perfecting the board of supervisors and independent director's system, structuring a suitable effective supervision mechanism that our listed company needed; Strengthening CPA trade's construction, make qualified " economic police "; Revising laws and regulations , perfecting financial report practice fraud crime regulation of civil liability further, raising the cost by a wide margin; Strengthening the code of ethic and institutional improvement simultaneously.