Financial Fraud And Audit Listed Companies Countermeasures

In the rapid development of China’s capital market context, thepublic disclosure of financial information of listed companies as animportant basis for decision making, decision-making is at the investorbecomes increasingly important, especially in the profitability of thefinancial information and its authenticity is attracting indicators the focusof investors. When investors and the public on the financial informationof particular concern began, more and more listed companies’ financialfraud incidents occur frequently in China’s securities market, startingfrom "Yinguangxia" incident early years, to the "Kelong Electrical ",Inrecent years between then" Zixin Pharmaceutical "," Lvdadi "and otherfraud incident, China’s securities market was severely disrupted economicorder, so that investors lose confidence in the securities market, andcombating the enthusiasm of investors. Financial fraud is not only notofficially reflecting the performance of enterprises, but also caused lossesto the majority of investors, hindering the healthy development of thecapital market. How to detect and prevent financial fraud incidents listedcompanies occur frequently, to protect the interests of investors, creditorsand other stakeholders is imperative.In this paper, in2012a Xindaidi Biotechnology Co., Ltd.,Guangdong Financial Fraud audit failures, analyze seek financial reporting fraud generation variation. From several aspects, including theexternal environment, internal governance and external incentives, etc., tofind the motivation to form corporate fraud, and then combined with theaudit failed to discover the motives and reasons for its corporate fraudfrom different levels, including the manager level, the level of thefinancial statements, the financial reporting fraud behavior andcharacteristics of Exploration, ultimately, to analyze the reasons for theproposed how to prevent financial fraud from the external environmentand internal, as well as a certified public accountant in the audit processon how to avoid fraud audit on the financial statements failurecountermeasures, hoping against corporate corruption in theimplementation of the audit, to provide help for the CPA.