The Research On The Problem Of Internal Governance Of Sinovel After Accounting Fraud

At the beginning of twenty-first Century,accounting fraud events of Enron,WorldCom,Xerox and other foreign companies have brought a strong shock to the global capital markets,and accounting fraud has become the focus of our attention.In recent years,with the rapid development of China's capital market,accounting fraud is becoming more and more serious,a series of accounting fraud scandal has been exposed,includingGuangXia,LanTian,GreenLandand other domestic companies,triggeringa series of vicious consequences,likeinvestors'economic damage,disturbiton of normal operation of the market,resources can not be effectively configured and etc.In order to promote the sound development of China's capital market,it is urgent to control the accounting fraud.The accounting circle has carried on the extensive discussion to this question,and found the causal relationship between corporate internal governance and accounting fraud,the internal governance is reasonable and effective or not,can directly affect the possibility of accounting fraud.On the basis of case study,with the way combinating of events and theories,this paper chooses the listed companies Sinovel which was punished by the Commission for accounting fraud in 2015,to study the cause of accounting fraud and explore the approaches that fix it from the perspective of internal governance.First of all,this paperestablishs the theoretical basis of the article with fraud risk factor theory and principal-agent theory,analyzing the general causes of accounting fraud of listed companies in China and the role of internal governance mechanism,and the relationship between them.Then giving a detailed description of accounting fraud event of Sinovel,deeply analyzing the defects in the three meetings and one stage(shareholders,board of directors,board of supervisors and management)of the company,at the same time,explains negative effects of these defects on the formation of accounting fraud.Finally,putting forward some rational countermeasures in how to improve internal governance of Sinovel.