Study For Lack Of Accounting Integrity And It’s Measures

Lack of accounting integrity is a long standing problem, a problem not only inour country, but in other countries where relevant systems are properly constituted.Lack of accounting integrity in our country is particularly acute at the present stage,Too many accounting cheating fraud are found in the annual inspection by thefinancial sector and the auditing department. which exists in different systems ofownership enterprises,Administrative departments and accountancies. Lack ofaccounting weakens seriously the function of macro-regulation of the country, resultsin the state’s macroeconomic policy mistakes and the profit loss of investors,thatcreations social problems easily. It also encourages embezzlement of state-ownedassets, Lack of accounting intergrity has also made the accountings accomplices ofthe criminals. in addition the accountings themselives cann’t resist the temptation ofmoney, The accounting cheating of self-dealings by taking advantage of the positionare gradually increasing. Lack of accounting integrity also addes seriously to the lackof intergrite all of the society.So,we must analysis about the present condition of thelack of the integrity of the accounting professionals, summarized the reasons for it andput forward the measures to solve the problem of the lack of accounting integrity.Accountancy is an activity that records how money and property are used byenterprises and other organizations, and report it according to the generally acceptedprinciples, so that the parties concerned have a straight and objective understanding offinancial status of the enterprises and other organizations, thus providing foundation forthe future economic activities. people engag in this kind of works are accountingprofessionals. the accounting profession are refered to all the people who engage inthe accountancy and the examination of the accounting information and other peoplewhose whole or the most part of work is relative. the accounting profession includesnot only the accounting professionals of the enterprises， but also that ofAdministrative departments,the CPA,the accountances employied by the companiesof agency bookkeeping and other intermidiaries are belonged to. It must bedifferentiated between the accounting professionals and accounting information providers. It proposes that the category of accounting information providers should bebroader than accounting professionals. the leaders concerned of the departments are informations providers, but may not be accounting professionals. People held liable foraccountability because of lack of integrity should not only be accounting professionalsbut also accounting information providers. the accounting integrity refers to the factthat accounting professionals should be objective, straight, thorough, fair in revealingthe true information, and provide true and reliable accounting information and qualityservice to the accounting information users. To strengthen the construction of theaccounting integrity is very significant. First of all, integrity is the primary requirementof the accounting profession. Also, the integrity of accounting professionals is one ofthe preconditions for the country to make macro-decisions. Finally, the accountingintegrity is the necessary requirement for the effective supervision of the country.The accounting professionals manifest their lack of integrity mainly in thefollowing aspects: First, there exists falsification of various degrees in all kinds ofenterprises. Then, there exists a phenomenon that accounting firms do not perform theirauditing duty responsibly. Also, there exists the falsification of various degrees inadministrative departments and government institutions. The reasons for the lack ofintegrity of the accounting professionals are the following: First, the influence of thesocial environment as a whole. Our society suffers a general lack of integrity at present,and accounting professionals can not be detached from it. Second, the lack ofsupervision by the real accounting information users. the real accounting informationusers are vacant in the accounting professional’s management systems,they have noeffective supervision mechanism over accounting professionals. Third, the designingdefect of external auditing mechanism. The income of the accounting firms and otherintermediaries comes from auditing targets, thus effective supervision can not exercised.Fourth, the defect of accountability system. There is no serious accountability on thepart of the accounting firms, and it’s hard to hold accountants themselves andresponsible people accountable for administrative, civil compensation liability. Fifth,some accounting professional’ quality, and ethical standards are not high, So they can’t resist profit temptation and external pressure，that is a very important reason forthe lack of accounting integrity.To solve the lack of accounting integrity we can Firstly, strengthen theconstruction of integrity atmosphere of the society. The education on integrity invarious fields and among various groups of people should be strengthened, andgovernment departments, civil servants should be under strict demands, be examplesfor the society. Mostly importantly, the education on integrity of accountingprofessionals should be strengthened,foster the value of intergrite in accountingprofessional,So the accounting professional,ability of tempertation resistance andpressure can be strengthened;Secondly, Extensivly pursure the accountantaccreditation system. Consolidate binding of the accounting information user to theaccountances, Extabish service consciousness for the real accounting informationusers.Perfect the prevailing accountant accreditation system. Clearfy the assigneraccording the legal pricinple that “who fund,who delegate”,expand the accountantaccreditation system in all kinds of mordern company and other organizations,provideinstitutional guarantiee for the accounting intergrity.Third, strengthen institutionaldevelopment, perfect the auditing service system of accounting firms. For example:establish and perfect the system of withdrawal mechanism of accounting firms;cooperate closely with the professional association and be well-informed; institute therotation mechanism of accounting firms, increase the cost for violating the laws;establish the credit records of accounting firms and certified public accountants,etc.Fourth, strengthen the accountability system for integrity violation. relevant lawsshould be brought into effect, interconnecting the responsibilities of different natures,imposing strict liability on directly liable person and administrators. Concerning theentities of liability, the accountants’ personal compensation liability should beincreased to a certain extent, deterring any falsification on the part of accountants. theexternal auditing---the entity form of the accounting firms should be reformed, andthe accounting firms in the form of partnership should be encouraged, also, thepersonal liability of the people in charge of the accounting firms should be givenadded weight. Fifth, encourage non-government supervision organizations. Non-government supervision organizations should be allowed to profit from exposingthe false accounting information. In order to prevent the non-government supervisionorganization, driven by greed, from straying off the track, strict rules and regulationsshould be set up to prevent the non-government supervision organizations from goingto the other extreme.