Research On Detecting Model Of Fraudulent Financial Statement Of Manufacturing Listed Companies In China

Publicity of information can maintain and protect open, equity and justice of securities business. But fraudulent financial reporting prevents the capital market from developing. It influences the optimization of the distribution of resources of the stock market. And it also seriously hurts the confidence of majority investors. The phenomenons of fraudulent financial statements appear frequently in the global stock market. Therefore, the fraudulent financial reporting problem has attracted the attention of accountants,auditors and the realm of industry and it urgently needs to be solved.The researches of domestic and abroad indicate that it is possible to identify fraudulent financial statements. Although fraudulent listed companies make out aborative plan, it is impossible that the statements have not a leak. The index of fraudulent listed companies would have abnormity from natural ones. The current research was based on a sample of all industries to establish common financial reporting fraud to identify the model, no distinction between trade model, and different industries have different financial characteristics. The effect of industrial model will be better than general models. Based on the previous study, this paper selects the manufacturing industry and sets up the model of fraudulent financial statements. The research will help the users to recognize listed companies which have symptom of fraud, then do further confirmation.This paper adopts normative and empirical methods to study the fraudulent financial statements. The empirical method is to set up logistic regression model to verify. This paper selects fraudulent industrial listed companies and industrial listed companies without fraud as sample, establishes the model of fraudulent financial statements of industrial listed company and forecasts samples for testing. The results show the effect of the manufacturing company model is well. The test results of the model show that the model of manufacturing listed companies is better than the general model. We should set up different sectors of the industry model, and then the model will be better.This paper first introduced the research background, the significance of omestic and foreign financial reporting fraud status of the review and evaluation, at the same time introduced the idea of this paper, and then identify the financial reporting fraud were outlined; paper identified the object of study for the manufacturing industry, Established a model of financial reporting fraud to identify the samples, a model of indicators in the manufacturing sector was constructed on the basis of the financial reports of listed companies to identify fraud and the empirical model and test the effectiveness of the inspection.The contribution of the paper:1. The paper constructs the model by using the data of the listed company of manufacturing industry of our country. The result of the model of manufacturing industry is better.2. Before constructing the model, we make normal distribution examination; the results show that the indexes do not obey the normal distribution. So the paper does Wilcoxon examination and constructs Logistic regression model, which makes the process more precise.3. The paper not only choose financial indexes but also choose corporate governance indexes, the conclusion is that both financial indexes and corporate governance indexes will reveal the fraudulent financial statement better. The paper sets a set of indexes to detect Chinese listed company of manufacturing industry fraudulent financial statement.