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The Research Of Forensic Accounting's Application Problems In China

Posted on:2011-02-17Degree:MasterType:Thesis
Country:ChinaCandidate:X H LianFull Text:PDF
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Recent year, with constant financial scandal exposure in world-famous companies such as Enron, Tyco, WorldCom and Adelphia, people began to doubt accuracy of accounting database, authenticity of financial statement given by listed company as well as credibility of audit report produced by CPA. With the rapid development of the socialist market economy, forensic accounting has gradually entered into the daily economic life, forensic accounting has caused people's great attention. At present, China is in a period of economic restructuring, the cases of economic crime increase, the amount of corruption grows and the ways of fraud become complex. In the process of economic case's investigation, trial and settlement, it will inevitably involve some related accounting and legal issues. However, due to professional characteristic of accounting issues and complexity of accounting data, it is difficult for many non-finance staff to understand these accounting knowledge, it is insufficient to merely master legal knowledge in order to address these complex issues, the problem of accounting better servicing judicial activity is placed in front of the public. Out of responsible attitude for the public and the parties, lawyers must uphold fair and objective principles and grasp every detailed process of economic cases so as to make a fair ruling. Nevertheless, lawyers'vigor and ability is limited, it is not only inconsistent with economics' principle of maximizing interest but it is also unrealistic if one staff is asked to master accounting and legal knowledge simultaneously. It is extremely significant to integrate accounting and legal knowledge with the rapid development of society, in such circumstances a legal and accounting cross discipline——forensic accounting is produced in China.Forensic accounting is a newly-sprung overlapping marginal subject, combining accounting, auditing and law. It is not only different from general accounting, but it is also distinct from independent auditing. It is an emerging accounting discipline that ranges between accounting and auditing and extends into the legal field. Forensic accounting rose in 1980'America, forensic accounting in America focuses on the discussion of practical content, furthermore, it forms two major branches including investigative accounting and litigation support forensic accounting. Until the late 90's in the last century the subject of forensic accounting was introduced in China, now there has been a growing number of accounting experts who engage in the research of forensic accounting. Our forensic accounting field is still at the initial stage, it has not formed a perfect theory system of forensic accounting, Chinese forensic accounting is much more backward than many developed countries. The accounting experts and law experts can't communicate very well in academic field, so much forensic accounting knowledge has not been reached consensus, the accounting experts in China are studying this topic at the exploratory stage, forensic accounting has vast development space in China, it will exert enormous influence on the development and improvement of accounting system, it will become one of the hottest research points in accounting field.The basic framework of the article is divided into five parts;The first part is an introduction, it shows research background, documents and research ideas.The second part is an overview of forensic accounting, including related definition about forensic accounting made by domestic scholars, the cause of forensic accounting'emerging as well as the content system of forensic accounting.The third part is about the development of forensic accounting in China, it introduces current situation of forensic accounting in China, combining specific cases it analyses existing problems in the developing. process of forensic accounting in China.The fourth part is a series of effective measures proposed by experts to solve the problems.The five part is the conclusion of this article, it introduces the main research findings, the limitation of research and the research areas in the future.
Keywords/Search Tags:forensic accounting, investigative accounting, litigation support forensic accounting, theory system of forensic accounting
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