Corporate Accounting Fraud And Its Prevention

With the rapid development of China’s economy in recent years,China’s securities market has experienced rapid development over the past thirty years,has made remarkable achievements in the world,and gradually become one of the world’s most important securities market.However,since the establishment of China’s securities market,the accounting fraud of listed companies has been emerging.Accounting fraud of listed companies and its prevention has been a hot and difficult issue in the stock market.Many companies accounting fraud,has been exposed by the regulatory authorities and social media,such as mountain west,Xintai electric,Wan Fu,Yunnan green earth.July 8,2016,the Commission announced that the Thai electric listed due to fraud,forced to start the delisting process,Xintai electric became the first Chinese securities market forced delisting of listed companies due to fraud issued.Every year,there are a number of companies exposed to the issue of accounting fraud,it has seriously hindered the development of China’s economy.Accounting fraud can cause a sharp drop in stock prices,but also caused huge losses to investors at the same time,the company will hinder their own development,and ultimately enable the company to face the risk of delisting,but also hinder the healthy development of securities market,securities market credibility,reduce the effect of resource allocation and so on,at the same time these people were shocked by the problem also caused people profound reflection on the problem of accounting fraud.Therefore,how to effectively prevent accounting fraud is a big problem to be solved.In this paper,combined with the phenomenon of accounting fraud at home and abroad,the paper studies the background of accounting fraud,clarifies the significance and methods of the study.This paper expounds the harm of accounting fraud to the listed companies,the information users and the stock market.Combined with the specific case examples of Xintai electric company to a detailed analysis of the accounting fraud,accounting fraud means and performance,the main large fictional accounts receivable,reduce bad debts after verification,to beautify the financial statements;and then analyze the subjective motivation of accounting fraud,and fraud for the first through the IPO audit,through the audit,in order to to maintain the stock price,and fraud in order to beautify the performance;finally,in-depth analysis of listed companies accounting fraud of the internal and external conditions,defects,top managers including the operating mechanism of the listed company’s legal consciousness itself weak internal conditions,CPA and listed companies collusion and government supervision and other external conditions.At the end of this paper,the author puts forward some suggestions to solve the problems of internal and external objective and subjective problems in the case of Xintai Electric Co.,ltd.