Research On The Financial Report Fraud Of Listed Company In China

As a carrier of accounting information, financial report not only reflects a corporation's financial status, income and cash-flow, but also was concerned highly by the related interest entities such as the owner, the creditor, the government etc. However, the financial report fraudulent can be seen anywhere during the periods of the domestic capital market's establishment and development. Unfortunately, the increasing ratio of frauds that was aggravated by the financial crisis occurred in the last year impede extremely the healthy forward development of stock market. Therefore, this paper takes the behavior of financial report fraud of domestic listed company as the topic and hopefully can put some suggestive proposition forward.In the paper, it introduces the theoretical principle of financial report ,then analyses the present situation and damages of listed company's financial report fraud and summarizes the common methods of financial report fraud from financial statements and notes; and then continually uses the most perfect risk factor of fraud currently to conclude precautionary measures from the theories of the normal risk factor and the separate risk factor; finally takes KELON electrical appliance as a example to illustrate how to prevent the behavior of financial report fraud.