To Discuss Thecommon Income Manipulati On Method And Prevention Measure On China’s Listing Corporations

Many theoretical researches and audit practice show that, the listing corporations in China use earnings manipulation commonly to whitewash their financial statements, which is also the most common causes of audit failure. In this paper, I summed up six main earnings manipulation from typical cases in China’s listing corporation, including overdraft future income, change the structure of the income, exaggerate the income scale, fictitious operating income, raise income each other and concealing related income. And at the same time, this paper puts forward a series of countermeasures to deal with earnings manipulation, such as reforming the standard of income confirmation, improving the audit method, entrusts to the auditing workers greater external authority and maintain the independence of audit judgment from workers through key financial indicators.