Research On Audit Of Accounting Fraud Of Listed Companies

Since the establishment of the Shanghai and Shenzhen stock exchange, the financial fraud incidents of the listed companies in our country occurred from time to time, which presenting a rising tendency. The motivation of listed companies' financial fraud is complicated and diverse and the fraud means are complex and difficult to identify. However, the related auditing regulations and CPA fraud auditing still remain lacking. In such situation, it's very difficult to accomplish some achievements in fraud auditing and inhibit the listed companies' financial fraud.The paper combined theories and cases to discuss the issues of listed companies' financial fraud and the auditing, using quite mature and advanced international fraud theories and choosing a typical pharmacy company's financial fraud case. On the basis of summarizing the domestic and foreign listed companies' financial fraud and fraud auditing research literature, this paper analyzed the related issues with a case study. This paper aimed to analyze the motivation and means of the listed companies' financial fraud in our country, to discuss in depth of the fraud auditing problems and how to consummate the fraud auditing from the three aspects of auditing commission relations, auditing standards and CPA behaviors.This paper is divided into four parts. The first part is introduction, mainly introducing the background, significance of the topic, the literature review and the study framework and methods. The second part overviews the financial fraud and fraud auditing by generalizing the definition of financial fraud and fraud auditing, analyzing the auditing procedures and methods and concluding the commonly used financial fraud means and the issues existed in fraud auditing. The third part is the fraud auditing case study of KZ company. KZ company mainly took advantage of the three means to accomplish the intention of financial fraud, which are hiding related party relationships, using personal bank accounts and other accounts in vitro inverted to undercount period expenses and using non-affiliate transfer and posting inflated sales and profits. The study held that the auditing company----Zhong Shen Ya Tai auditing company blamed the financial fraud failures. The CPAs didn't apply the auditing standards well in the auditing procedures so that the auditing failed to play its due role. The paper put forward some suggestions from the aspects of correcting auditing commission relations, improving auditing standards and regulating auditing behaviors. Given the current distorted relationship auditing commission, the subject to audit supervision became the clientele of the auditing, so the paper recommended taking measures to correct relations and enhance the independence of audit. In addition, the auditing standards and regulations should be more complete. Finally, the CPAs in our country should maintain professional skepticism and continue to strengthen their business knowledge and learning to enhance the auditing competence.