Study On The Financial Statements Fraud In Chinese Listed Companies

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 inform-action disclosure is not optimistic and perfect. Such financial statements frauds have even become shocking phenomena. The concept of the term " financial statement fraud" is defined firstly. Then the author expatiates on the theory of origin, identification and prevention about financial statement fraud. Meanwhile, the theory of origin about financial statement fraud is analyzed selectively, which include the Fraud Triangle Theory, the Fraud GONE Theory, the Fraud Risky Theory, and the Fraud Iceberg Theory and so on. 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 effects caused by financial statements fraud in the listed company are far-reaching. 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. The author also lists some financial statement fraud cases, and gathers up the fraud means based on the cases. The internal and external courses of formation are the emphasis of the study of financial statement fraud. 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.