Research On The Audit Countermeasures Of Financial Frauds In China's Listed Companies

Financial fraud in listed companies brings seriously negative influence to the justice and equity of the capital market as well as considerable risks to certified public accountant's audit work.From the perspective of certified public accountant,the author conducts a research on financial fraud practice in listed company and gives some effective strategies,which not only provides reference for auditors to reduce failure rate at work but also is beneficial to cut down fraud in the capital market.In this paper,the author firstly combs through the theories and literature about financial fraud and fraud audit.On the foundation of the literature review,the author analyzes the 46 companies punished by China Securities Regulatory Commission due to the fraud in financial report from 2013 to 2017,and then concludes the features of the listed company committing financial fraud in the aspects like industry and fraud means.Afterwards,focusing on a specific case study,the author does a thorough analysis of Dengyun Stock's continuous fraud in IPO and its annual reports after it was listed on a stock exchange and discusses its motive of fraud based on fraud triangle theory.Later,according to CSRC's punishment and announcement,the author summarizes the deficiencies of Shine Wing Accounting Firm,the company providing audit service to Dengyun.Finally,in the light of the statistical data and the case study of Dengyun Stock,the author proposes five measures for audit work.(1)focus on the audit of key projects: Concern about underestimating the risk of auditing,Pay attention to the audit of the risk of income fraud.Pay close attention to the audit of fraudulent risks in the annotations of financial statements.(2)implement the modern risk oriented audit: Pay attention to the correction of risk assessment and the level of risk assessment,Strict implementation of audit procedures,Maintain sufficient suspicion of practice;(3)strengthening the construction of the firm: Strengthen the quality control of the firm,Improve the quality of the auditors.