Identification And Analysis Of Financial Reporting Fraud Of Listed Companies

Our country is in the period of economic transition. Because of the particularity and the reaction speedof economic system lag, financial fraud phenomenon on listed companies is more serious, increasing thedifficulty to use financial information for internal and external personnel, also making investors feel moreperplexed. The purpose of this paper is from the source of fraud--three factors to identify fraudulentfinancial reporting fraud, provide guidelines for information users of financial reporting information, andreduce the difficulty for supervision departments of listed companies’ financial reporting fraud.According to the new auditing standards issued in2011and the SAS NO.99, the fraud triangle theoryis applied in them. Therefore this paper selects77Shanghai A shares of listed companies with annual reportfraud punished by the CSRC and77without the occurrence of fraud in Shanghai A stock listed companiesfrom2003to2012as the research sample. Based on three factors: pressure, opportunity and excuse, thepaper selects indicators on three representatives to establish fraud identification model. The pressure factoris divided into four aspects, which are the financial pressure, external pressure, personal financial demandand financial objectives. The second factor opportunity is surely connected with related party transactions,invalid supervision, organization structure and ownership structure. The third factor excuse concludes auditopinions and the change of the auditor occurring two years before the replace of fraud.According to the examples of SAS NO.99, the paper change the three qualitative factors intoquantitative. Then take18factors of fraud sample and non fraud sample into descriptive statistics, pairedsamples T test and Wilcoxon signed rank test, and multiple linear test of the explanatory variables, excludethe four which have obvious correlation between indicators. And then according to the comprehensivefraud risk factors, using logistic regression analysis, establish the financial reporting fraud identificationmodel, and judge the accuracy of model to identify financial fraud. Where there is fraud pressure,opportunity and excuse for fraud in listed companies, there is more possibility that the fraud will take place.The identification rate of the model reach72.73%, which can better identify early signs of fraud.Finally, the enlightenment, we should start from three aspects, including reducing the pressure thatinduces listed companies financial fraud, eliminating the opportunity that causes financial fraud of listedcompanies and removing the excuse that lesds to financial fraud of listed companies to prevent theoccurrence of financial fraud.