Audit Practice Common Accounting Information Distortion Causes And Identification Methods

This thesis applies the knowledge of accounting,finance and auditing to analyzethe current situation of fruadulent accountlng information,The reason of itsexistence and its impact on the capital market.It also discuss the positive influence ofsupervision measures taken by the authorities .At the same time,the paper presentsthe basic method to determine the credibility of accounting information through casestudy of Dazhi co.ltd. The major cause of distorted accounting information,the paper points out,isthe lack of a comp1ete legal system and ineffective reinforcement of the relevant lawsand regulations.The other reasons are:unsound corporate governance,weak internalcontrol and very low opportunity cost of committing fraud. In regard to determining the reliability of accounting Information,the papersuggests the user of begin With gaining understanding of a company's basic situationand judge whether there is any motive to cheat.He should put his focus on the analysisof internal control and at the same time,he should analyze the industry backgroundand try to compare the financial data of the company across years and with othercompanies in the same industry. Some auditing case is also necessary means to helpfigure out the credibility and quality of the accounting information used.