A Survey On Financial Fraud Audit Of Listed Corporation In China

In recent years, with the development of social economy and capital market, the listed companies' financial fraud occurs frequently. Financial fraud is not only bringing great negative influence on the investors and companys' own development, but also affect the healthy development of the stock market and credit mechanism. Investors who bear huge losses at the same time, began to doubt the authenticity of the transparency and information of the capital market. They also pay more attention to the independence and reliability of the audit report, so the audit services proposed more stringent requirements.On the basis of literature review and theory carding about financial fraud audit, this paper adopted the method of combining theoretical analysis and case analysis comprehensively. The reason of the selection of Wanjiang logistics fraud as an in-depth case analysis is that,in recent years, this is one of the most representative but rarely studied listed company fraud cases, which has typical means of fraud and large negative effect.In this case, through the analysis of Wanjiang logistics evidence of fraud, fraud method and audit, this paper obtained the internal and external reasons of financial fraud auditing failure:(1) low efficiency of the external audit mechanism(lack audit independence, fail to grasp the motivation of fraud, fraud identification failure and fraud audit staff lack of professional competence).(2)defects in internal audit( fail to make a reasonable assessment of internal control, internal audit operation in low efficiency).Due to the audit defect of Wanjiang fraud fraud also exists in other listed companies, this paper drawing lessons from this proposed some feasible suggestion to further improve the audit of financial fraud of listed companies:(1) strengthen the external audit in listed companies financial fraud: maintain the independence of the audit,fully use the fraud triangle theory, grasp the fraud motivation, evaluate and prevent the fraud, accurately identify signs of financial fraud of listed companies, enhance the auditor's professional competence.(2)strengthen the internal audit in listed companies financial fraud: make a reasonable evaluation of internal control mechanism, comprehensively improve the quality of internal audit of listed companies.