The Research On The Financial Report Fraud Of Listed Companies In China

The more economy develops, the more important accounting is. The more important accounting is, the more it depends on accounting information. Financial report as a most important carrier of accounting information, it provides the accounting information with financial position, operation result, and cash flow. Not only financial report does offer the references to investors and creditors for their economic policy-making, but also it supervises the resources efficiently which are entrusted by managers of high levels. In this way, financial report can ensure that the funds of state-owned business will not lose and then the funds of enterprises can maintain in value and increase in value. At the same time, accounting information as a major tool of managing economy, it was expected to achieve three things. First, it must be at the basis of transactions or items which have already taken place. Second, it must be reflect the level of management movements in enterprises. Third, it must be transparent. For these reasons, the quality of accounting information can determine the quality of economic information; what is more, it determines the quality of economic policy-makings.However, with the rising and developing of stock markets all over the globe and the acceleration of capital market all-in-one, the influence of accounting information expands increasingly, and the fraud in financial report spreads increasingly: From the fraud in the Enron,Xerox,Merck of USA to Pamalet of Italy were exposed. It is no doubt that there is nothing new in the fraud cases of financial report in public companies of our nation: Form the"Yinguangxia"to"Daerman", and"Kelong"Appliance, the fraud cases had happened in them obstruct the order of our stock market, which make the investors lose confident and activity , distort the value of enterprises, damage the interest of our nation, and obstruct the development of capital market. Facing the harm of fraud in financial report, the research on it has become the focal point of theory circles and practice fields.By reading a great amount of data and collecting a lot of fraud cases, utilizing the basic theories of Accountancy, Economics, and Principles of Management, and from the angles of connotation, feature, and harm of the fraud in financial report, I elaborate the methods of the fraud which had happened in our nation and analyze the reasons of the existence of the fraud in financial report of our nation, further more, I propose the concrete measures which are directed toward the fraud in financial report. I divide them into four parts. They are complete the rules of accounting, intensify the supervision of extra market of enterprises, perfect the inferior management, and strengthen the construction of good faith.