Research On Financial Information And Accounting Fraud Based On Corporate Governance

As China's market economy continues to develop, it improves on our accounting work with a new and higher requirement. The quality of accounting information has caused more and more attention in society when the effectiveness of capital market was strengthened constantly. Superficially, the low efficiency in company management and the weak skill and poor morality of accounting officer will induce accounting fraud easily. As a special frame, corporate governance structure is very important in current enterprise system in fact. Accounting fraud has become a serious problem and lots of countries fail to avoid and solve it, also, the consequence of it made undesired impact on the development of entire economy and the security market lost its natural function, which it harm the investor's confidence. Multinational corporations were beaten to death by the "perfect storm" such as Enron, World com, Merck and so on. The complete corporate governance structure decides the standard of financial information quality and deals with the accounting fraud which products the crisis of accounting trust. For one thing, the complete corporate governance structure will speeds up the conformation of core ability in finance and promotes the efficiency of financial management and activity, for another, it can change the financial resources into capability, which these will reduce the possibility in accounting fraud. Considering that the Corporate governance structure influence the financial information quality deeply, and analyze the internal and external governance mechanism, and propose the perfect and advanced corporate governance stratagem including to transform the structure of equity, improve the system of board of directors and board of supervisors, reform to the methods of assessment and excitation for manager, strengthen the penalty and control the external environment in audit that accord to our national situation and pay attention to the connection of Corporate governance structure which will eliminate the accounting fraud thoroughly.