Studies On Accounting Information Distortion Of Enterprise

The accounting information refers to the useful message to the users for their decision-making, which is abstracted from the accountants' tackling and analysis of the accounting clients' business actions. It is closely connected with the investor's judgment, the debt-holder's credit strategy and the government's supervision over the micro-enterprises. Therefore, as an important part of the national economy's information system, the accounting information's quality not only affects the achievement of the enterprise's internal management and the establishment of modern corporation system, the interest of corresponding partners like investors and debt-holders, but also the policy-making of the national economy, the economic and social order and the management of social resources. As a result, the accounting information must have the characteristics of relevance and credibility, of which the latter should functions as the core. However, in recent years, the problem of distorted accounting information made by a good many enterprises has been wide spread to such an extent that people can not help worrying about its harmfulness. Yet fundamental changes have not been achieved although the problem has been tackled for several times. At the same time, the quality problem of accounting information has become the hot topic, which has attracted the attention of so many accountancy scholars and actual situation workers. They have done a comprehensive research in the theory field of our country's accountancy, and discussed the measures to keep the situation of accounting information distortion from being further worse.The causes that result in accounting information distortion may be complicated and can be analyzed from various angles, among which the following are the generally accepted ones: improving the internal management structure of the corporate, making the law system more perfect, strengthening external supervision, moralizing the reliability of the accountants, and so on.The author of the present paper tries to make an investigation into the root of the accounting information distortion or fake accounts making from the point view of the contract theory and the entrusting-agent theory. Moreover, he proposes some prevention and administration measures to bring the problem under control.The present article is made up of five parts: introduction; the current situation and harmfulness of the accounting information distortion; a theoretical analysis of the problem, specific reasons of the problem, strategy and measures and a conclusion.