Study On The Financial Statements Fraud In Chinese Listed Companies

Graduate: Chen Mei Supervised: Qi Xiao-yan Southeast University Security market in China has been rapidly developed since the establishment of Shanghai and Shenzhen Security Exchanges in the early 1990s. Meanwhile, with the improvement in accounting systems, the strengthening of security supervision, and the development of CPA industry, Accounting Information Disclosure Systems, as the prime means to realize"openness, fairness, justice", have been gradually expanded. However, we should be well aware that the current situation of accounting information disclosure is not optimistic and perfect. Such financial statements frauds have even become shocking phenomena.The effects caused by financial statements fraud in the listed company are far-reaching. Not only does the fraud mislead information users and cause them make the wrong decisions, but also it distorts the share value, disturbs the security market order, infringes upon the interests of investors, who are greatly discouraged, and leaves the domestic security market falling into credit crises. Definitely to say that financial statements fraud has been an obstacle to the sound and healthy development of security market in China. How to solve the problem plays an important role in the standardization and development of the security market and becomes the shared concern of the economic circles and even the whole society.On the base of the Fraud Triangle Theory the financial statements fraud in Chinese listed companies is analyzed by means of the normative approach. The countermeasures of relieving the fraudulent pressure, reducing the fraudulent opportunity and eliminating the fraudulent rationalization are put forward in the hope of coming up with some proposals for the benefit of the development in the security market.The thesis consists of preface main body and conclusion. The main contents are as follows:The first chapter is the preface. The background and meaning of finical statements fraud in the listed company are expounded. Meanwhile, the line of study, the means, the main contents, the structure and the main viewpoints of the thesis are pointed out.The second chapter is the summary of the financial statements fraud in the listedcompany. It consists of four sections: Firstly, the financial report system in the listed company is given a brief introduction; Secondly, the financial statements fraud is introduced; Thirdly, the research into financial statements fraud theory is summarized; and finally the Fraud Triangle Theory is recommended.The third chapter is the analysis of financial statements fraud by means of the Fraud Triangle Theory. Combined with the present situation, the fraudulent pressure, the fraudulent opportunity and the rationalization, which result in financial statements fraud, are analyzed on the base of the Fraud Triangle Theory.The fourth chapter is the countermeasure to prevent and deal with the financial statements fraud. The relevant suggestions to relieve the fraudulent pressure and to reduce the fraudulent opportunity and to eliminate fraudulent rationalization are proposed.The last chapter is the conclusion which is the summary of the ultimateness and the proposals.