Management Fraud In Listed Company And The Auditing

Recent years accompanied with the erupt of finance fraud scandals of several famous companies in the whole world, both the society and academic circles focus on the company management fraud and its exposure. Based on the comparatively mature fraud theory and the correlated research in western countries, this essay studies several important aspects about management fraud and fraud auditing of listed companies by normative approach. Chapter 2 begins with the study of management fraud behavior and means, analyzes the motivation theory, behavior, means and reason, which indicates that it is hurry and necessary to bring management fraud to light. In the follow it is the study of management fraud auditing responsibility, which discuss auditing Objectives and responsibility during every stage of the development of auditing. We can conclude that the CPA, who provide auditing services for company as a individual third party, would have to expose management fraud and take the responsibility .Chapter 4 is the most important part, which studies which auditing pattern to choose. The inherent defect of System-based auditing pattern leads to the result that it can do nothing to management fraud. While risk-based auditing pattern isn't fit for the reality of China and it is impossible to make in use. In this chapter, the writer attempt to create a new fraud auditing pattern. According to the analysis of management fraud behavior and means, the writer believes that the reason of management fraud is the validity of corporate governance structure. So the corporate governance-based auditing pattern we construct is focus on the corporate governance system. the basic ideas is that it is focus on the corporate governance system, integrate corporate governance system analysis, management behavior analysis with internal control system analysis ,aim at fraud expose and making audit opinion about the legitimacy and fairness of finance report as the objective. The essay also designs the basic auditing procedure of governance-based auditing pattern.