A listed company shall be audited by a third party before releasing its financial report. Audit institutions will professionally and comprehensively verify the authenticity of financial reports and give ratings, that is, unqualified opinions, qualified opinions, opposing opinions and unable to issue opinions.

Among them, the unqualified opinion shows that the preparation of financial reports conforms to accounting standards, there is no major error, it is objective and fair, and there is no problem. You can safely use the data in the financial report for analysis.

The qualified opinion shows that there are some mistakes in the financial report, but not many. At this time, the auditor will list the mistakes in the audit report, so that the users of financial reports can pay attention to the relevant data and don't make wrong judgments.

Objection and inability to issue opinions are both great denials of financial reports. It can be considered that the financial report is false.

In the financial reports published by enterprises, the annual report must be audited, and the interim report does not need to be audited, but some enterprises will audit. When reading a financial report, the audit report is usually written in the first chapter. People who use financial reports can easily judge whether financial reports are false through audit ratings.

For the management of listed companies, the most annoying thing is you investors who don't cooperate with performance.

First, it is simple. Speak in a simple way. Please omit the progressive mood. You are not an actor. Don't design those plots.

This is the most primitive and basic demand and voice of all investors in the capital market. How much we hope that listed companies will be less routine, more sincere, tell less stories and not design those plots.

Laziness is human nature. Every investor wants all the information in the world to be summarized and lined up for my review. He prefers someone to simply tell him which stock to buy and lie down to make money.

Financial statements were not born to meet everyone's needs. In the daily management process of enterprises, too much information and data are generated every day. It is necessary to have written language to summarize and express concisely, so that investors can understand the production and operation of enterprises. This language is financial accounting, and the works written are called financial statements.

However, a perfect and efficient market does not exist.

Yes, before we make an investment decision, we must collect information from various channels to help us make a decision. This is the difference between investing and gambling. Financial statements are a convenient and affordable channel to obtain this information, and there are many other auxiliary channels. However, it should be pointed out that the information in financial statements is highly concise. Regardless of human factors or non-human factors, just like compressing a video, there will be a lot of information distortion in this process. Readers of financial reports need to try their best to restore the real situation of business operations through their own experience and judgment.

At present, the standardized information transmission mode in the capital market is relatively efficient and fair, and there is no better alternative for the time being.

In other words, reading financial statements is only the starting point of investment analysis, not the end point. No way, although everyone wants to talk about it simply, the fact is that the capital market is a battle of wits between the two sides, so the story is becoming more and more complicated and difficult to understand. After all, cheating money is good.

Financial reports are used for fraud, and financial reports themselves are also used for fraud. Since childhood, our education has focused on the ability to "prove"-all kinds of proof questions, experimental questions and so on. -but not in the ability to "falsify", but the market is not an examination question, it is complex and changeable. Roaming in the market, especially in the capital market, you don't need to prove an answer like in school. We just need to eliminate dangerous potholes, frame a relatively safe range, make choices based on experience and other news, and the rest-can only be left to luck. Although there are still many possibilities in this range, the probability of making mistakes is much smaller. We should pay attention to a cost-benefit principle in doing everything, and reading financial statements is a model to balance cost and benefit.