Securities Market Accounting Disclosure And Independent Auditing Research

The primary warrant that how investors elect stock is the financial report showed by listed company. The most important index that the investors give their attention is the performance [rate of return common stcickholders equity (ROE), earnings per share (EPS)]. These indexes are the important measure to maintain the listing competence and enjoy the right of issue the new share. So, the listed company does their best to improve their performance. Certainly, so many kinds of earning management method appeared. But it is not to make the fake financial report. Because the financial report must be audited, The company adjusts the profit in the field of permissive. As to the sane investor, estimate the real lasting profit capability of listed company through identifying the method of earning management is very important. In this report, the cases analysis and behavior analysis method were used. The preparatory research was done on earning management in the field of Shanghai Exchange and Shenzhen Exchange. The cut-in point is the nonstandard unqualified opinion audit report which supplied by Certified Public Accountant (CPA). The six parts were disparted. The method and reason the problem research adopted were put forward in the first part~ The second part show the reason and motive of earning management in the Chinese listed company; The general situation of Chinese securities market be scan through the swatch select of audit report and the analysis of stat. Resolute in the third part; The fourthly part describe the kinds of proceeding related to audit report; The fifthly part particularly analyse the typical cases; The last part put forward some operable countermeasure on Chinese securities market. The cases of listed company annals in 1998 were explained and analysed is the mostly method in this report. The preparatory research was done in the field of demonstration research.