The Research On Mechanism Of Detecting Fraud Accounting

Non-accounting related factors often have a remarkable effect on accounting frauds, which increase the difficulty to solve lurking financial problems in a company. The evolvement of advanced capital market has kept us reminded that a mature and organized market environment has not come into being overnight. It is not reasonable to have an expectation to ravel out all accounting frauds short-timely or by a perfect accounting model. Contemporarily, most accounting information users still cannot predict the accuracy of the data they are using. But the chance to disclose concealing accounting problems can be maximized by information users' strengthening their ability to recognize and interpret accounting data and utilizing various information feedbacks, and by the consigner's and other information users' understanding and grasping the knowledge and skills to identify accounting cheat and adjust and analyze the accounting data corresponding to their specific financial policy needs, which, in total, minimize the possibility of public traded companies' falsification of their accounting reports. Consequently, it dedicates to establish a feasible fraud-signaling mechanism.The thesis consists of four main parts. The first part retrospect some domestic and foreign accounting fraud-related theories and topics that have brought an extensive and meaningful significance to accounting controllership, and based on former research, it discusses an identification mechanism that discovers accounting fraudulent practices from both theoretical and technological aspects. Secondly, it solicits from the society angle to discuss the mutual effect of fraud recognition and motivation limitations and to identify the intemality of accounting frauds. Among this part, situation model that is one of the most distinct and prophetic is used to construct fraud accounting one. Thirdly, it discusses three elements that are indispensable in domestic accounting fraudulence cases and establishes the accounting fraudulence theoretical models—Three Element Theory, which provides theoretical support to the subsequent development of fraud identification techniques. The last part covers the realization of the mechanism of accounting fraud identification and discovery. It consists of thetwo main aspects: One is the fraud identification technique that derives from the Three Element Theory; the other one is the composition of integrated identification techniques. These two gain complementary benefits and bring out the best of each other, and thus maximize the superiority of the fraud identification techniques and minimize the risks resulting from accounting fraudulences.