The Forensic Accounting Function Reconstruction And The Research For The Effect Of Governance

At present, our country’s core problem of people’s livelihood lies toincreasingly property occupation. Careers of lawyers, accountants, the police,procurators, judges cannot solve the phenomenon. So now China is badly in need ofnew composite tools and occupations to undertake this responsibility. As the basis ofthe livelihood of the people, property is the media of linking people’s happiness andforensic accounting. Thus the forensic accounting which is the collection of law,accounting, auditing and evaluating will deal with this difficulty. TheAnglo-American law system forensic accounting was brought in the late1990s inChina, and by September30st2014, there are a total of780essays published with thetitle of forensic accounting, But most of them basically introduce foreign forensicaccounting, not establish local forensic accounting system. In addition due tononprofessional forensic accounting, it is difficult to give full play to the uniquefeatures of solving the problem of occupying the property of the people’s livelihood.Therefore the research on forensic accounting of livelihood of people possesses veryimportant theoretical value and practical significance. Following the thread of thelocalization and professionalization of forensic accounting, this article adopts thecombination of Specification and empirical research, and organic union ofqualitative and quantitative, committing to solve realistic problems in the forensicaccounting governance effect and Localization. The main research conclusions andInnovations are as below:1. In this essay, it proposes that establishing forensic accounting should bebased on the view of the people of livelihood. The reestablishing concept of forensicaccounting is defined as society professional activities of which specific entity usestools of law, accounting, auditing, and evaluating to cope with different entities’property problems, including illegal occupation, compensation for damages, valuepreservation and increment of property. In this article, it also describescharacteristics of forensic accounting. Forensic accounting does not belong toaccounting or law. It is a new combination subject. Its object is properties ofdifferent entities and its aim is to protect property safety of different entities.Reestablishing the essence of forensic accounting is to protect the static state of theentity property contract and the security of transaction, and help strengthen thesociety property order to be more reliable and effective. 2. Based on the protection of the people’s livelihood, this article proposed toreconstruct legal accounting procedures and the physical function. Combined withthe nature of forensic accounting, it constructed the fair procedure function, marketgovernance function, social balance function, and prevention and control ofcorruption function of forensic accounting for protecting the property interests of thepeople’s livelihood. Fair procedure function belongs to the program function offorensic accounting, The entity function of forensic accounting include the otherthree big functions During the four functions, they design effect evaluation indexs.From the point of view of the empirical analysis, this essay has analyzed themotivation and resistance factors of forensic accounting system, and it also suggestedthat the key of solving the problem of accounting fraud and official corruption is theconstruction of accounting frauds and official corruption net income of less thanzero.3. Based on the micro perspective, this paper constructed an empirical modelabout the function of forensic accounting in governance effect of the illegal behaviorof listed companies, inspecting the relevance of the forensic accounting governancequality to the violations and illegal behavior of listed companies. In this empiricalstudy, this article selected the486a-share listed companies as the total sample during2006-2013, and so further constructed the forensic accounting governance index,probability of illegal behavior and other variables. At the same time, the essay putforward that forensic accounting governance index quantify the quality of Forensicaccounting governance of listed companies for the first time. Through the variabledescriptive statistics and correlation analysis, it found that the probability, thefrequency and severity of illegal behavior of listed companies are negatively relatedto the forensic accounting governance index. On the other hand, Using binarylogistic regression and multivariate linear regression analysis, this article proved that alower quality of forensic accounting governance of enterprise are more prone toillegal activities, and the higher the frequency, the more serious degree.4.From the macro view, this article build an empirical model, which is about theforensic accounting index correlation with the welfare of the people’s livelihood.examining the forensic accounting procedure and entity function about improvingthe effect of the welfare of the people’s livelihood level. In this study, First of all,selecting22the welfare of the people’s livelihood indicators data coming fromeastern, central and western provinces in2012, it adopts factor analysis to calculate people’s livelihood welfare index of samples, Secondly, using analytic hierarchyprocess to calculate the30samples of forensic accounting index of the city, thusforensic accounting index measured a region of forensic accounting developmentlevel. Finally, employing SPSS17.0to analyze the correlation between people’slivelihood welfare index and forensic accounting index with Independent T test. Theconclusion shows that they are significant positive correlation.5.In consideration of the full implementation of the forensic accountingprocedure and entity function, this part mainly construct the guarantee mechanism ofthe function of forensic accounting. On the one hand, it advises forensic accountingto build entities of judiciary, law enforcement, unit, and agency, accomplishing valuepreservation and increment of property. On the other hand, helping promotingforensic accounting more professional, this essay established mechanism of rightsand obligations, profession permission, profession independence, informationprivacy, benefit security, risk management, and profession security. Furthermore, thepaper proposed to conduct forensic accounting obligation system, which is based onethical responsibility, leaded by civil liability, centered with criminal liability andsupplemented by administrative responsibility should be built to promote thesustainable development of forensic accounting.