Research On Accounting Integrity Of Listed Companies In China

In recent years,the lack of accounting integrity has been more and more serious.Financial fraud scandals in accounting business have been incessantly seen,such as the WorldCom Event in US,Toshiba Financial Fraud in Japan and WANFU Biotechnology Event and ZIXIN Pharmaceutical Event in China.Based on the above example,the lack of accounting integrity and accounting information fraud shall be urgently solved in relation to the management of listed companies at home and abroad.These financial fraud scandals have not only influenced social public images of accountants and corporate images,jeopardized social credibility of the accounting business,but also made accounting integrity a widespread concern for people.The lack of accounting integrity has resulted in a series of severe problems in China`s economic operation,such as uneven allocation of security market resources,increased social transaction costs and difficulties in raising funds for the company etc.The article firstly explained organizational structure of the listed company in general,progressively deepened the research by introducing relative concepts of accounting integrity in the listed company,and indicated with the great significance of accounting integrity of the listed company.Then,the article pointed out existing circumstances and harms of the lack of accounting integrity in China`s listed companies,and analyzed causes to the lack of accounting integrity in China`s listed companies in terms of great profits and low costs of financial fraud,incomplete structure of the corporate governance,incomplete auditing supervision system and existing problems of the accounting system per se.Then,by taking the example of ZIXIN Pharmaceutical,the article introduced the process and treatment results of corporate financial fraud;according to the GONE theory,the article performed motivation analysis on ZIXIN Pharmaceutical`s financial fraud in four aspects of greed,opportunity,demand and exposure.Finally,the article proposed approaches of establishing a reasonable incentive and restraint mechanism,ameliorating governance structure of the listed company,perfecting auditing supervision system and improving the accounting system for the governance of the lack of accounting integrity.