Screening System Construction On The Financial Statement Whitewash And Countermeasures Research Of Listed Company

In recent years, there had many financial statements whitewash and fraud cases of listed companies happened in the world, the tactics varied and manipulated profit amount were huge. From Yinguangxia, Qiongminyuan Hail to the current Health Branch, green earth, this series of financial whitewash cases showing the whitewashed report data not only deliver the wrong message to the investors, directly cause their losses, and indirectly destroy the fairness of the entire stock market, disrupt the order of the capital markets, affect the important role of capit al market in optimizing resources allocation. Therefore, how to effectively prevent such white wash behaviors becomes extremely urgent, and it is an everlasting subject need to be studied a nd explored in the accounting industry.Based on this background, I will do some research on the financial statements whitewash of listed companies, in the hope of helping the investors make rational judgments on the possi ble suspected whitewash in the enterprises'reports, and reduce the investment losses. This pa per first summarizes the researched supporting theory, then discusses the means and purposes of report whitewash with the help of some theory and relevant literature; Secondly, this paper will construct the screening system for the report whitewash, the system consists of two parts, the index screening system using financial and non-financial data of the listed company in so me industry, combined with the improved AHP and factor analysis, to evaluate and score on t he fifteen selected financial indicators, and determine each indicators'weighting in the whole system; supplementary screening system derived enterprise'whitewash risk mainly through th e motivational factors, chance factors and attitudinal factors of whitewash. This screening sys tem can discriminate between possible whitewash behavior and suspect of the enterprise, then figure out the key areas and major incentives of the whitewash. Thirdly, taking S company as a case study, identifies its false financial information by using the screening system, and sum marizes the method applied to whitewash the financial statements; Finally, propose the corres ponding solutions and improvement countermeasures, in order to improve the quality of accou nting information and protect the interests of small investors.