Insight Of Financial Reporting Fraud In Listed Company And The Auditing Method

With the gradual development of Chinese capital market, accounting information disclosed by public companies, especially the information on accounting earnings and earnings quality has become an important source of information to investors when they're making their investment decisions. However, accompanying the developing role of accounting information, we also observe a frequent break out of accounting frauds in Chinese capital market. From the"Yinguangxia"to"Daerman", and"Kelong"appliance. The fraud cases had happened in them obstruct the order of our stock market, which makes the investors lose confident and activity, distorts the value of enterprises, damages the interest of our nation, and obstruct the development of capital market.This article attempt to unify domestic and foreign audit failure cases in the recent years and seek the rule of fraud's production and change. Seeks the factors which form corrupts practices from the market environment, intrinsic aspect and outside inducement and then analyze fraud method related corrupting practices motive. Discussing the recognition of the fraud sign from three angles: management behavior, company condition, financial statement. At last, giving some auditing advices that can help the CPA in their real work.