The Research On The Causes And Precautions Of The Enterprise Financial Reporting Fraud

Along with the progress of the times, people get richer in social material life, and social production gains rapid development. Enterprises, companies, and financial groups rise everywhere worldwide, promoting the economic development and the accounting and auditing practices, which is essential for enterprises, companies, and financial groups. It is not only the key to the progress of internal transactions, but to the fluxion of national economy.Although reform on our country’s law relating to accounting is under its way repetitiously, and for sure it is introducing progression, the financial fraud in our society is serious, causing damage to the interests of inhabitants and further more, the country itself. For the reason that financial fraud will adapt to the changing of accounting standards and its system, the restriction seems to fall short of financial fraud in practice.Upon these, an in-depth study is made on the current system of accounting regulations through the achievements of researches home and abroad. And on this basis, analysis on the current situation of China’s listed company financial reporting fraud and its precautions with the application of domestic and overseas anti-fraud theories are carried out, in the hope of making contribution to the improvement of China’s accounting and auditing practices. In addition, a summary of the thesis’ structure is represented by the author. The whole thesis consists of five parts as follow:In the first part, the theoretical research on the enterprise financial reporting fraud is made, elaborating the related documentation and research results of the current enterprise financial reports.In the second part, the causes and harm of corporate financial reporting fraud is expressed, through which to help people understand the real reason for enterprises to carry out financial fraud, and to provide theoretical basis for the author’s precaution and its urgency.In the third part, studies on the related regulations to prevent corporate financial reporting fraud under the new situations are expounded. Based on the research of new rules, the advantages and disadvantages can be better understood.In the fourth part, the principal means of financial reporting fraud under the new rules in our country and the logical proofs for the precautions below are explained.In the fifth part, some feasible counter-measures against corporate financial reporting fraud are provided after researches on its causes, current condition and the precautions.