Research On Audit Trail Discovery Of DG Corporation’s Financial Fraud

With the rapid development of modern capital market, enterprise financial fraudbecame sensitive and seriously problem which threat social and economic activitiesoperating well. Because of this，financial fraud has become a global common problemwhich impact on the global economy. In all countries in the history of the development ofcapital market, there were all kinds of financial fraud scandal come up with the matureand perfect of the capital market.In order to protect the interests of investors, and boost the development of economichealthily, the accounting standards became strict on financial statement disclosure of thecompany’s financial situation. The government and public are always focus on financialfraud. There is a game between the auditor and the fraud maker, which are looking forfraud audit trail and positioning the financial fraud. The technology of finding financialfraud is becoming fullness with the updated of accounting standards.As development of revolution on modern information means and content, thediscovery of audit trail gradually to the information system development and data field.Also make the change of audit trails found technology. The auditor basis on corporation’saccounting system and the business process, faces on data in order to establish a detailaudit model, dig deeper on audit trail, complete the relevant business data collection andanalysis, intercommunicate with corporation’s managers and finally formed the auditopinion and report.Due to the diversity of the means of fraud and it always can keep up with theAccounting standards updating. There has not a general method or mode to found everysingle audit trails.Basis in many other audit clues, audit clues can testify against the financial fraud.There is such a possibility that multiple audit trails will not qualitative the financial fraudbehavior. In this paper, using finding audit trails as theoretical basis, analyzing the case inbusiness rule, after data comparison on financial report, business logic and practicerelation. You should be able to see the ways and means in financial fraud through-out audit process of DG company. And these can be used as financial fraud case support ofaudit trails discovery.This article classify fraud audit trail as four methods, inductive all kinds of foundfraud audit trail with the analysis of DG company. Find out how to locate in financialfraud with audit trail. Make it easier for the auditor finding financial fraud and to achievethe purpose of reduce the financial fraud.Basic contents of this paper are as follows:At first part is the case description. Mainly elaborated on background of DGcorporation, Company’s inner and outer circumstance and the preliminary introduction,and judgment of elaborate audit planCase analysis is the second part of this paper. This chapter starting from the relevantconcepts of this paper found that the audit clues, using business rule to evaluation ofanalytical data on financial report, contrast with financial data, business logic andpractice relation. This part will support the conclusions and recommendations in the thirdpart.At third part of this paper is conclusions and recommendations for countermeasures.Draw conclusions on the DG company financial fraud based on the whole audit processof audit process on DG financial report. Give some recommendations about how to helpthe auditor discovery the audit trail. Applying these suggestions can help auditors makemore accurate effort.The last part is the complimentary close. By use of the method of audit trails foundmethods, summarize the audit trails found items should be paid attention to in thepractice.