The Crisis Of Accounting Integrity And Its Administration By The Government

Entering the 21st century, China's reform and development is rapidly moving forward. Accounting has become an integral part of the market economy.Accounting information is the basis of decision-making for the state's macroeconomic management departments , enterprises and investors. The true and reliable accounting information is the fundamental guarantee to establish and perfect the socialist market economy system. But a series of financial scandal such as Enron in U.S. and Yin Guangxia in China at the beginning of the 21st century shocked the people. The crisis of Accounting integrity has aroused widespread concern in the connunity.Accounting information distortion caused by the lack of accounting integrity has brought the incalculable damage directly or indirectly to consumers, investors, creditors and even countries. The crisis of Accounting integrity is not only a moral problem or an economic problem, but a political problem which the government confront. This article describes the harm from the lack of accounting integrity and its reasons by using social capital theory and other theories. At the same time , the article gives some corresponding countermeasures on the administration by the government.