Research On Preventing The Evolution Of Earnings Management For The Accounting Fraud

Earnings management is an action in which the enterprise's management deliberately adopts variety of methods to affect the accounting data especially the accounting earnings in order to achieve private benefit or maximize the value of enterprises on the precondition of compliance with accounting standards. Accounting fraud is an illegal action in which the enterprise's management deliberately violates the state laws, regulations and rules in order to obtain improper or illegal interest and lead to misleading financial reports. Theoretically earnings management and accounting fraud can be divided clearly, but it is difficult to grasp the scale division in reality. The presence of the gray area makes much enterprise's management adopt accounting fraud under the guise of earnings management. At present, many scholars at home and abroad study the earnings management and accounting fraud extensively, but few scholars integrate one with another. The new accounting standards, issued in 2006, reflect the international convergence, and to some extent reduce the space of earnings management. However, the financial crisis sweeps the world, and many enterprises are facing ST, delisting or bankruptcy. So the enterprise's management is likely to make use of earnings management or accounting fraud to prettify their report. This paper contacts earnings management with accounting fraud, finds the space of the evolution of earnings management into accounting fraud, and builds a system to effectively prevent the evolution of earnings management into accounting fraud.This paper is divided into three parts:Introduction describes the research background, the motivation of the paper, structure arrangement and the current situation of the research at home and abroad in the motive and method of earnings management and accounting fraud.PartⅠShows the evolution of earnings management motive for accounting fraud. First of all, discusses earnings management and accounting fraud of the content, the nature of the earnings management positioning. Secondly, from the Contractor, corporate governance and accounting standards on earnings management point of view the evolution of the accounting fraud was Motivation.PartⅡof the earnings management to the evolution and consequences of accounting fraud described. From the objectives, methods, and other aspects of the extent of earnings management and accounting fraud was in theory the distinction, and explained how earnings management to evolve to the accounting fraud. Finally, described the evolution of earnings management for the accounting fraud on investors, business, society, the impact of such accounting standards setting.PartⅢis to construct a narrative of the foregoing to prevent the evolution of earnings management systems for accounting fraud. According to the marginal cost is equal to the principle of marginal utility to determine the evolution of point, then the new accounting standards, strengthening enforcement of accounting standards, corporate governance and other aspects of paper and put forward countermeasures and preventive measures.