Public Company Accounting Irregularities In Research

In recent years, accounting fraud events, such as Shenyang Lantian, Yinguangxia and Guangdong Kelon Electrical Holdings, have frequently occurred in the security market of China. Meanwhile, in the United states, a series of accounting frauds have been disclosed, which are connected with some famous listed companies, such as Enron Corp., WorldCom and Xerox, which shocked the entire world like the "9.11" accident. The frequent occurrence of accounting fraud events not only turn out great loss for investors and creditors, but also evoke confidence crisis in the capital market, which bring about greatly negative influence on the global economy. This paper makes deep analysis on the meaning, modes, and motives of the accounting fraud events. On this foundation, this paper put forward policies to prevent the fraud. The entire paper is comprised of three parts.The first part makes analysis and definition of the meaning of accounting fraud. The paper points out that accounting fraud is the intentional fraud action that the managing group implements to cheat and hide the major accounting information with a view to procure some unfair or illegal economic interests, which features in the intentional, continuous and serious afterwards characteristics. On this foundation, the paper makes studies on various fraud schemes, including fraud by confirming incomes ahead, making up incomes and related assets, less calculating coast and debts,, utilizing connected transaction and merging statements. Through making deep analysis on the fraud modes, the paper aims to boost the discerning ability and find the motive and reasons of the accounting fraud.The second part makes detailed analysis on motives and reasons of accounting fraud of the listed companies, through which the paper points out that it is the interest that drives the accounting fraud. The internal management defects of the listed companies, such as dominant shareholders, internal control, non-independent supervision boards, ability deficiency of the management group, and unhealthy...