Auditing Research On Listed Companies' Inflated Profit Fraud

With the continuous development and progress of the social market economy in the 21st century,the listed companies in the securities market have become increasingly complex in their living environment and are facing greater pressure for competition.Many listed companies use a variety of fraud measures to increase financial fraud in order to increase their reporting profits.This kind of behavior increases the difficulty of identifying monetary fraud in the external audit and also causes heavy losses to the healthy development of our economy.Under the background of this research,this article first describes the importance of identifying the inflated profits of listed companies and conducting fraud audits,and introduces the domestic and foreign literature about fraud auditing of listed companies.Second,it analyzes the two main concepts of inflated profits a nd fraud audits and introduces the characteristics of fraud audit.It describes in detail various related fraud theories,including the iceberg theory.Then it introduces methods to identify the infringement of profits and fraud.The first is to identify the company as a whole,mainly from the relationship between the enterprise and the external organization,the whole situation of the industry in which the enterprise is located,the internal control system of the enterprise and the rationality of the organization.Reasonable place to make breakthroughs;The second is to identify specific levels(inflated income,inflated profits,use of related party transactions),for each level identified after the fraud risk points,put forward specific measures to deal with.Due to the greater role of external auditing in fraud auditing,the overall response measures and specific response measures from the perspective of the accounting firm put forward a series of multi-perspective suggestions for auditors,such as maintaining a high degree in the auditing business.Independence,improve the ability to identify risks for customers before conducting audit work,attach importance to risk assessment in audit work,add appropriate audit procedures when necessary,abide by professionalism at each stage of the auditing business,etc.,and address fraud at each level.How to better audit your own opinions.Because this paper focuses on fraud identification and response to inflated profits,this paper selects the great representative company as the case study,through various means of making profits for big wisdom companies and auditing in fraud audit Personnel coping methods,and finally come to the case of fraud auditing the reasons for the failure and make recommendations accordingly.