Analysis Of Earnings Management Auditing Cases Of Y Company Driven By Performance Compensation Agreement

Under the background of China's economic transformation in recent years,competition in various markets and industries has become increasingly fierce.In order to highlight their own competitive advantages,enterprises have opened up new business areas and markets one after another.The integration process in various industries has accelerated,and companies have started mergers and acquisitions and restructuring.Under normal circumstances,the asset transferor's knowledge of the underlying assets is much higher than that of the purchaser,so there is asymmetric information in the transaction.In order to maintain the fairness of asset transactions,it is necessary to curb the valuation of the underlying assets.Performance compensation system as a constraint on the fairness of transaction pricing and effective punishment measures can protect the interests of small and medium shareholders and promote fair transactions.Under the performance compensation system,will major shareholders adopt special accounting methods in order to avoid the consequences and losses caused by breach of performance commitments?Can Earnings Management help listed companies achieve their performance promises?Through the research on Y company that signed the performance compensation agreement and completed the share-trading reform,it tried to analyze the financial data after signing its performance compensation commitments,and used relevant financial analysis methods to analyze its earnings quality and identify its existing major misstatement risks.In the field,it reveals the various earnings management behaviors before and after Y company's performance compensation commitments,comprehensively analyzes its motives and means,and provides a reference for CPAs to pay attention to risk points of the listed companies that sign performance compensation agreements.The investment decision-making for investors and the supervising of the performance commitments of listed companies for mergers and acquisitions of the listed companies have provided reference and enlightenment.