The Research On The Financial Report Fraud Of Listed Companies

This paper selects 75 fraud years of 56 listed companies for fraud which were disclosed public by The China securities regulatory commission from 1998 to 2009 for the research units. Meanwhile, the paper selects 75 non-fraud listed companies for controlling with the same industry and the same year of fraud listed companies. The results show that, (a) on financial index, the profitability, solvency and operation ability are the key areas of fraud companies. In operation ability, we should focus on total assets turnover, accounts receivable turnover and fixed asset turnover. (b) On the corporate governance of listed companies, the fraud characteristics of the listed company appeared as: small board of directors, big independent directors, small board of supervisors, the chairman and general manager are played by two persons. (c) On the equity structure of listed companies, the fraud characteristics of the listed company appeared as: high proportion of circulating shares and social legal shares, lower concentration of ownership structure, state-owned shares and the first majority shareholder. (d) On the type of auditing opinions being issued by auditors, companies being issued non-standard auditing opinions are more probable to cook the books. But also, companies adjusting the income and profit after presenting the statements and exchanging accounting firm during the report period are more probable to cook the books. (e) Comparing with the standard of Back Propagation neural network, the model of fraudulent financial reporting identification with the quantum particle swarm algorithm and Back Propagation neural network improved the training speed, the condition of getting into the local advantage easily of Back Propagation neural network and increased the accuracy.At the end, the article introduced Game Theory to study financial fraudulent practice of listed companies, and four game models of listed companies, accounting firm, China securities regulatory commission and investors were established with Forensic accountants. At the end, the article put forward some measures of preventing financial fraudulent practice of listed companies and improving the regulation efficiency through analyzing the subject's action strategies and Nash equilibriums. such as, improving the supervision and efficiency of supervising department, increasing penalties, strengthening the supervision of outside auditing, enlarging incentives for accounting firms who dare to expose the fraudulent company, enhancing the professional quality, professional ethics and independence of certified public accountants to improve the efficiency and quality of auditing, paying more attention to cultivating forensic accountants to reduce lawsuit costs and increase the possibility of winning appeals, strengthening risk education to cultivate rational the subjects of demanding accounting information.