Public Company Management Fraud Audit Model Study

Management has become the mastermind of vast majority financial fraud, but in China internal control-oriented auditing mode used widely in many companies, because of its inherent defects and ignore the target of management fraud can not do anything for management fraud, similarly, the risk-oriented auditing mode is more than the reality that can only become the goal in future. Based on reasons mentioned upon, the auditing theoretic group and the auditing practical group both are calling of building a management fraud oriented auditing mode. This study is based on fraud triangle theory and unique institutional context of the Chinese listed companies, and Inclusive of the existing audit mode, constructs a new mode of management fraud auditing. This article describes the new ideals of management fraud auditing and reconstructs the audit objectives, then proposes a new auditing concepts, while clear internal and external audit both in the responsibility and in role. On this basis, proposing a new special procedure of management fraud oriented auditing mode. To expose the fraud of this administration and evaluation of accounting statements for the twin goals of fairness of management fraud auditing mode is bound to become China's listed companies, fraud prevention and control realistic choice.