Study On Detecting Accounting Fraud Of Listed Company In China

Along the action of stock market which servers for market economy building in our country becoming more and more stronger, people demand more higher quality of accounting information. Yet accounting fraud is an objective reality, the governance to it can not be achieved in short term. If the user of accounting information can detect accounting fraud effectively, the harm to relevant benefit group can be reduced greatly. So how to detect the accounting fraud effectively is the thesis's emphasis.This thesis is launched through normative study and empirical study. First, the thesis explains the reason of accounting fraud in listed companies from the contract theory, the delegation-agency theory and the insider control theory, so as to help the accounting information user enhance their ability for detecting fraud. Second, the thesis summarizes the methods about detecting accounting fraud from experience, and gets a series of warnings signs to detect accounting fraud. Last, on the foundation of the warning signs of accounting fraud, the thesis chooses seven relevant targets which is financial condition, the quality of the assets, the operating capability, the ability of achieving profit, the quality of profit, transaction among the participators, internal governance in the company, and tests them between companies with fraud and without fraud using Logistic method. On the basis of the test, the most notable targets will be reserved and put into the logistic model for detecting accounting fraud in listed company.The result of the research shows that: The financial structure, the quality of profit and the transaction among the participators are notable targets to detect the fraud in listed company, that is to say, the company with accounting fraud has such notable characteristics as the high rate of financial structure, the bad quality of profit and transaction among the participators frequently. So, not only the investor, the creditor but also the stock supervise department should pay more attention to the targets above when they judge if a listed company has accounting fraud. According to the conclusion of the research, the thesis puts forward proper suggestions from five aspects of perfecting the internal inspecting mechanism, increasing the punishment for the listed company who has violated the law, enhancing the administration for the company whose financial condition has been worsen, improving the financial report publishing policy and paying attention to the warning signs of accounting fraud of listed companies constantly.