Research On The Cash Fraud And Defense Against It In Listed Companies

Influence and harm of cash fraud in the listed companies gradually appears as for one kind of new forms in accountant fraud, in particular in recent years when our country's stock market function of financing and refinancing are attenuating. Listed companies and their equity controlled shareholders adopted each method to corrupt practices toward monetary fund which had been the safest property originally in order to gain the fund, which made a group of listed companies "to pull out spatially". It not only affected the listed companies' quality, but also harmed benefit of the general investors and creditors. The research on the listed companies' cash fraud has a certain significance regarding enhancing the listed companies' quality and disclosing the quality of accounting information, strengthening the listed companies' supervising and managing and improving audit quality of the accountant firms as well as protecting benefit of investors and creditors.It induces type of cash fraud in the listed companies for such forms as high cash balance fraud, concealment of limited-cash fraud, cash flow fraud, collection of fund fraud and off-book cash fraud and so on. Furthermore on the base of those it analyzes causes inside and outside of cash fraud, and point out that causes of cash fraud outside include unsound supervision system on stock market, inadequate relevant laws and rules, too slight punishment, lack of sound related functional departments supervision and dereliction of duty of accountant firms audit; such internal causes are mostly that unreasonable ownership structure, unwise corporate governance structure and disordered internal control mechanisms. Finally it puts forward measures against cash fraud, and in the outside environment establish efficient supervision system, perfect related laws and rules, increase severe fraud punishment, strengthen cash supervision of related functional departments, strengthen audit attestation of accountant firms; further standardize corporate governance structure, reinforce monitor function of committee of supervision, independent directors and audit committee, found sound internal control systems of accountant within the company.