Common Financial Statements To Manipulate The Means Audit Countermeasures Research

Now, many financial statements are manipulated, reports onlyreflect the will of management instead of the companies' achievement, theearning power which is reflected by profit index don't have the characteristicof long-term steady, if we use the unsteady profit index to forecast the future,the correctness of the result can not be guaranteed. So, the manipulation offinancial statements have been a serious problem which can not be ignoredand must be solved quickly when we deepen the economy innovation andperfect the capital market, these behaviors harm the investors' behalf andobstruct the optimization of capital market. This paper combines theorydiscussion and example analysis to point out the motivation of statementmanipulation and the four types of manipulation, discuss the manipulationmethod of the company from the aspect of income item, cost item and balancesheet item. According to these motivations and the method, it put forwardsome methods for CPA to audit company, hope these can be helpful forauditing and analyzing financial statement. With the perfect of our marketeconomy system, setting up of laws and development of auditing,manipulation of financial statements will be controlled and be well solved.