China's Listed Companies Accounting Fraud And Audit Failures Research

With the development of our country's capital market, there are more and more accounting frauds and audit failures revealed, and they give people greater and greater shock. On this background, it is necessary and urgent to research on accounting fraud and audit failure especially on the one of our country's listed companies systematically and thoroughly. What is accounting fraud? What is audit failure? What is the relationship between them? What causes and how to prevent this? These are the questions which the article studies and attempts to reply. Not long before, the Chinese Institute of Certified Public Accountants issued the guide of the Occupational Standard. In one chapter, it introduces a new model about audit risk which reads audit risk = significant wrong report risk ~* inspection risk. This new model gives me the inspiration. Beginning with the analysis of both significant wrong report risk and inspection risk, I give the definition of accounting fraud and audit failure, analyze the causes of it and give the preventative measures.The full text includes five parts. The first part introduces the new model about audit risk, the relevant terms and the relationship of accounting fraud and audit failure. The second part analyses the motive of accounting fraud, the influencing factors of significant wrong report risk and inspection risk and the respective risk-controlling system as well as the conditions in which the system is effective. Then, the third part analyses the causes of accounting frauds and audit failures of our country's listed companies from the following four aspects: the motive of accounting fraud, the corporate government, the quality of auditing and the law system. The fourth part produces corresponding measures of preventing accounting fraud and audit failure. The fifth part comes into the conclusion that it is insufficient to prevent the accounting fraud and the audit failure merely by improving the corporate government, the law system and the standards of accounting and auditing; it is also necessary that we introspect the perished occupational ethics and the distorted culture and try to rectify them; accounting fraud and audit failure-the stubborn illness of market economy, will be eradicated thoroughly under the efforts above.