Study On The Characteristics And Auditing Methods Of Financial Fraud

With the gradual development of Chinese capital market, accounting information disclosed by public companies, especially the information on accounting earnings and earnings quality has become an important source of information to investors when they’re making their investment decisions. However, accompanying the developing role of accounting information, we also observe a frequent break out of accounting frauds in Chinese capital market. The fraud cases had happened in them obstruct the order of our stock market, which makes the investors lose confident and activity, distorts the value of enterprises, damages the interest of our nation, and obstruct the development of capital market. Therefore issues related to the fraud audit research have reached no delay now.To address the Problem, the Paper selected consideration of fraud in a financial statement audit, in a bid to financial statements through fraud warning signals and means on the basis of the analysis, put forward several measures to deal with fraud.This Paper is divided into five chapters:Chapter1is introduction, describes the background and significance, and related literature review, the main content of this paper is given on this basis as well as innovation of this paper.Chapter2is the basis theory of fraud. This chapter described the fraud related to the concept of punishment, and fraud action because of the theory:the iceberg theory, theory of the factors GONE theory and the fraud risk factor theory described, and the acts of financial fraud has been to analyze the causes can not be eradicated, the last cited major financial fraud cases to reveal the great dangers of fraud, a theory pave the way for follow-up study of this paper.Chapter3analyzes Characteristics of financial fraud.2006-2010financial fraud and the listed companies of the China Securities Regulatory Commission, Shanghai Stock Exchange, Shenzhen Stock Exchange and the Ministry of Finance punishment for the study basis, the main types of Fraudulent financial reporting of listed companies in China, means and The fraud continued life of the statistical analysis.Chapter4studies auditing methods. This chapter belongs to "technical norms", including the basic auditing methods, the financial statements fraud auditing methods, and special methods of financial fraud auditing.Chapter5proposes suggestions to control financial fraud. Analyze of financial fraud characteristics and audit methodology in order to suppress the occurrence of financial fraud. Therefore, the last part of the basis of the preceding proposed several major proposals to curb financial fraud.The innovations of this paper:(1) Innovative approaches. This paper selected the penalty notice in2006to2010data, descriptive statistical analysis with the latest data on the characteristics of financial fraud, these features include the types of fraud, fraud means fraud continuous years of audit opinion type and penalties type, etc., more comprehensive and in-depth analysis of fraud characteristics.(2) Point of view of innovation. This paper based on the results of the analysis of fraud characteristics summarized the summary of the basic methods of fraud auditing, for the audit of financial statements, as well as several financial fraud early warning of special methods and use. Finally, according to the aforementioned corrupt characteristic analysis put forward the proposal to curb financial fraud. It increases the research point of view in fraud auditing and governance aspects.Because I am lack of theoretical knowledge, corrupt practice, coupled with time constraints and other reasons, the paper has many deficiencies. Analysis punished reports and on-line collection of fraud companies only have access to the SFC and other regulatory agencies announced.(1) Fraud characteristics. I can only draw on previous literature to analyze the fraud characteristics, but no actual survey any actual fraud means of a fraud, which led to the fraud characteristics of a certain error.(2) Fraud audit methods. Because of the lack of practical experience in auditing, I can only analyze the theory, but no proven. And many of the new method may not be collected.