Identification Of Financial Reporting Fraud Of China's Manufacturing Industry Listed Companies

As Enron's natural gas industry giant, because of fraudulent financial reporting issues came crashing down, shocked the world.With the establishment of China's securities market in the country accounts for half the share of financial reporting fraud of listed manufacturing companies has become more prominent, harm the healthy and orderly development of China's economy and society.Therefore, the problems caused by fraudulent financial reporting can not be ignored.Through the establishment of financial fraud identification model, the purpose is to provide suggestions to improve internal control, but also hope that the relevant regulatory authorities, certified public accountants and investors, improve the listed companies' financial reporting fraud recognition rate reached to prevent financial reporting fraud occur, and reduce the risk of loss.Firstly, select 2006--2015 year due to the provision of false financial reports being punished China Securities Regulatory Commission listed manufacturing companies and 75 financial report 75 parts manufacturing listed companies' financial reporting fraud does not occur as samples.Based on internal controls and fraud triangle theory, to find internal control framework can be elements of the internal control method for controlling, financial fraud from the general characteristics of pressure, opportunity and excuse to three aspects described, selected and non-financial indicators 18 financial indicators, through the use of the assignment method to assign non-financial information.Empirical analysis based,supplemented by theoretical analysis. Using paired samples T-test, correlation analysis and two Logistic regression statistical analysis as a means of identifying the 10 variables to identify significant manufacturing capacity of listed companies 'financial reporting fraud,identify fraud against the establishment of a manufacturing listed companies' financial reports model.Combined with the status quo and Empirical results obtained by the information disclosure of listed companies from the perspective of internal controls, make policy recommendations to prevent financial reporting fraud:Improve the internal control environment, risk-assessment, developing risk prevention and response strategy to enhance the efficiency and effectiveness of control activities, strengthen the timeliness and accuracy of information and communication, establish and improve internal oversight mechanisms.Because of its different industries in different circumstances, and therefore the same financial reporting fraud recognition model does not necessarily apply to all industries,Logistic regression model Aiming manufacturing in this industry, to build, it can better identify manufacturing listed company the possibility of financial reporting fraud.