The Research On Management Fraud-oriented Auditing Model For Listed Companies

Recently, a series of financial fraud scandals happened in some of the ListedCompanies at home and abroad which the way of management fraud take on moreand more multiple and complex. The Listed Companies management fraud not onlyseriously jeopardizes the healthy development of the capital market, but also has aserious negative impact on the entire CPA profession. Because of failing to detectfraud, the auditing profession faces a serious crisis of confidence and survival. How toaudit and expose the Listed Companies management fraud effectively has become amajor problem in the global scope for audit profession, which highlights theimportance of carrying out the research on management fraud-oriented auditing modelfor Listed Companies.This paper adopts methods of normative research and empirical research. On thebasis of defining the relevant concepts, it briefly describes the Certified PublicAccountant responsibility on disclosing the management fraud of Listed Companies,and elaborates the limitations in revealing the listed company management fraudwhich involves System-based audit model and Modern risk-based audit model. Andthen, the paper analyses the motivation of the management fraud for ListedCompanies from the angle of economic, the internal and external environment. Basingon the punishment notice of China Securities Regulatory Commission during theperiod2006-2010and using the statistical description and quantity analysis methods,it tries to find out the regular characteristics of management fraud way as well asfraud means at present in China Listed Company. What’ more. It provides somemethods to identify the Listed Companies management fraud behavior. On this basis,the paper relocations management fraud-oriented auditing objective for listedcompany and explores the concept, the special audit procedures and techniques ofmanagement fraud-oriented auditing model for Listed Companies. At the same time,it fully considers corporate governance structure, management behavior and internalcontrol system analysis. What’s more, the fraud of lower-level employees is also considered in the management fraud-oriented auditing model for Listed Companies.Finally, this paper puts forward relevant strategies to guarantee the effective operationof management fraud-oriented auditing model for Listed Companies.