On the Prevention and Governance of Accounting Fraud: Excellent Model Articles on Accounting Fraud Prevention and Governance 1
With the development of society, great changes have taken place in China's economic system and enterprises have developed rapidly, which requires planning accounting information. At present, some accounting practitioners abandon their original professional ethics in order to pursue their own interests, and the phenomenon of enterprise accounting fraud frequently appears. These behaviors affect the stable and orderly development of enterprises to a certain extent and have a negative impact on the economic system. This paper profoundly expounds the forms and harms of accounting fraud, and then analyzes the reasons and conditions of accounting fraud, so as to obtain the prevention and control measures of accounting fraud, and establish and improve the internal control system of enterprises.
Keywords: accounting fraud causes governance
First, the form and harm of accounting fraud
There are various forms of accounting fraud, mainly to avoid taxes and fees or deliberately make profits. Some accountants make fraud in order to transfer assets to their own names, while others are instructed to make fraud activities. In order to make a profit, accountants often falsify by changing business processes and accounting vouchers. Accounting procedure fraud is mainly in violation of state regulations, illegal profits, and failure to act according to rules and regulations. Voucher tampering is to use some fake invoices or reimbursement vouchers to obtain private interests. When private interests are satisfied, it will lead to stronger desire and more serious accounting fraud, which is very undesirable to affect economic development and the benign development of enterprises.
Because the main purpose of accounting fraud is to make profits, and individuals or some organizations make profits, which will damage the collective interests and cause inevitable losses to enterprises and countries. After this loss is amplified, it will even affect the development of the national economy, leading to a slowdown in the development of the national economy. Therefore, we should put an end to this kind of behavior. The reasons for the breakdown of accounting fraud can be divided into five categories: first, it affects the operation of the capital market, leading to unhealthy and inactive market development; Second, it affects the interests of shareholders and obligees, and gives some lawless elements the opportunity to unjustly benefit; Third, it will affect the decision-making of operators, resulting in operators not getting real data and seriously interfering with the economic development system; Fourth, enterprises have suffered losses, and many improper acquisitions or sales have brought devastating disasters to enterprises [2].
Second, the causes of accounting fraud
(A) the accountants themselves lack professional ethics and their own quality is not high.
Many accountants have been tempted by all kinds from the day they started working. At the same time, hedonism and selfishness are prevalent in society. They handle a lot of money every day, but their income is limited, which will naturally affect the accountant's outlook on life. Therefore, some people give up their professional ethics and forge accounting vouchers by themselves or in collusion with others, which opens the door for some people's illegal activities and even harms the interests of enterprises.
(two) the legal supervision system is not strict, and there is a lack of effective supervision means in the industry.
In terms of law, although China has issued many laws and regulations to control accounting fraud, the society is developing rapidly, the techniques and means of fraud are constantly updated, and some fraud behaviors cannot be found and investigated in the first time, and there is a lack of effective supervision system [3]. Due to limited resources, all departments can't supervise anytime and anywhere. At the same time, the internal audit department is usually set up according to national regulations, and the quality of personnel is limited. It is often just a formality, which does not play a practical role. On the contrary, it adds unnecessary burden and drag to enterprises.
(C) complex external interests of enterprises, limited external supervision
Many enterprises' accounting fraud behavior comes from the fact that enterprises want to blindly expand their operations or cater to the task needs of local governments. Because the economic development in many places is directly related to the vital interests of many people, it is inevitable that accounting fraud will not be used to cover up the lack of development momentum and strive for the balance between book profits and state investment. At the same time, the state's management of issuing invoices is not very strict, and there are many loopholes. It is easy to issue false invoices in many places, which gives an opportunity for accounting fraud.
Three, accounting fraud prevention measures and remediation plan
(A) improve the basic quality of accounting personnel in enterprises, strictly control the selection of talents, and improve the internal control system of enterprises.
Enterprises should strictly control, select qualified talents, improve the professional ethics of financial personnel, and keep in mind Zhu? Mo Bao left the foundation to go to the National Accounting Institute? Don't make false accounts? Strengthen the training of accountants' own quality and professional knowledge. Only when you are familiar with the business can you not use it. In addition, to improve the internal control system of enterprises, we must attach importance to internal control, check in time when problems are found, strictly abide by rules and regulations, check accounting vouchers and process systems layer by layer, and check and confirm repeatedly to prevent accounting fraud.
(2) Improve accounting laws and regulations and severely punish accounting fraud.
Due to the vague responsibility of accounting subjects, some accounting frauds were not severely punished, but were transferred from their posts after investigation, or some people who instigated and forced accounting frauds were easily exempted [4]. Although the Accounting Law stipulates that the person in charge of the unit is the subject of accounting behavior, there is no corresponding punishment for those who instigate accounting fraud. Therefore, it is necessary to improve the accounting law and impose heavy penalties on accounting fraud as an example. Increasing the punishment for accounting fraud will also standardize accounting behavior and make accountants think twice before making fraud. Once an accountant makes fraud or assists in making fraud, not only the accountant should be punished, but also those who ask for making false accounts should be severely punished. How to grasp the evidence requires the cooperation of accounting practitioners and the improvement of supervision and investigation channels. Only in this way can accounting behavior be standardized.
(C) to strengthen the control of internal and external interests of enterprises, management should make more efforts.
Because some personal interests and corporate interests are mixed together, many people hope to obtain illegitimate interests through accounting fraud, so we should optimize the internal and external environment of enterprises, advocate the spirit of honesty, improve some enterprise assessment methods, rationally distribute power and interests, consider the binding role between different positions, and strengthen the monitoring of accounting business processing, so that accounting cost personnel will be discovered and suppressed immediately once they take action [5]. At the same time, invoices should be strictly controlled. Not only the person who posted the invoice for reimbursement should be responsible for the bill, but also the person who approved it should bear the corresponding responsibility. It is necessary to prevent false invoices from flowing into enterprises, strengthen supervision and control accounting fraud.
Four. conclusion
In short, we need to improve the level of accounting practitioners, standardize their operations, retain high-quality accounting practitioners, strengthen management and control, control the external and internal interests of enterprises, change the previous financial model, supervise each other and rationally distribute power, strive for transparency in accounting accounts and prevent accounting fraud.
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[3] Lin Wei, Xu Liwen and Liu Jia. Identification of fraud in financial reports of listed companies ―― An empirical study based on triangle theory [J]. Audit research.2011(02).
[4] Shi Dongyue. On the professional ability and quality requirements of accountants in small and medium-sized enterprises [J]. Office business.2012 (07).
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Prevention and control of accounting fraud Excellent thesis 2 On the effective prevention and control measures of accounting fraud in listed companies in China
At present, the phenomenon of accounting fraud in listed companies in China has become a common problem. How to prevent accounting fraud and regain investor confidence has become the focus of attention from all walks of life. So how to control accounting fraud? Based on the above reasons, this paper expounds the following measures:
First, the cost of accounting fraud in China's listed companies reduces the income of accounting fraud.
The fundamental reason of accounting fraud in listed companies is interest relationship, which is directly related to the unreasonable distribution of accounting income and the cost of accounting fraud in China. The low cost and high income of accounting fraud in listed companies have made countless listed company executives wave upon wave. So-called? Take drastic measures? In order to thoroughly crack down on the current accounting fraud, from the enterprise level, we should first increase the ratio of accounting fraud cost to income, so that high income is accompanied by higher costs.
How to increase the cost of accounting fraud in listed companies? First, increase the direct cost of accounting fraud. The court cooperates closely with the CSRC to form a severe punishment mechanism, and immediately imposes severe moral punishment, economic punishment and administrative punishment on the discovered accounting fraud of listed companies; Then the expected cost of accounting fraud should be raised. At present, the accounting fraud of listed companies in China is so rampant that the direct cause of accounting fraud is the light punishment. Therefore, it is a direct means to control accounting fraud by increasing the punishment on the subject of accounting fraud in the securities law and accounting law, making accounting fraud a forbidden area for listed companies, which is easy to be afraid to set foot in. Finally, in order to increase the indirect cost of accounting fraud, it is necessary to establish the concept that accounting fraud should bear not only economic responsibility, but also civil responsibility. Therefore, strengthening the civil legal supervision and punishment of accounting fraud of listed companies has become a necessary means for us to crack down on accounting fraud.
Two, quickly establish and improve the accounting laws and regulations system
1, improve the corresponding laws and regulations system in China and strengthen the government's supervision over accounting fraud.
Establish the laws and regulations system of listed companies in China, further improve the laws and regulations of accounting, finance and auditing in China, and make listed companies in China have laws to follow and rules to follow. Moreover, laws and regulations that are not conducive to China's economic development should also be revised, especially those standards that do not conform to international accounting regulations and cannot be in line with international standards since China's accession to the WTO, so that China can truly become a legal society economically. Vigorously publicize and seriously publicize the laws and regulations of implementation of accounting, so that accountants can establish legal awareness in accounting work, and at the same time, effectively ensure that their rights can be exercised according to law.
2. Improve the accounting system and accounting standards and establish a high-quality accounting standards system.
A high-quality accounting standard mainly consists of product quality, formulation quality and implementation quality, in which product quality is the core, formulation quality is the premise and implementation quality is the guarantee. In this regard, we can learn from the experience accumulated by the Financial Accounting Standards Committee in the process of formulating accounting standards, further improve accounting standards and improve information quality.
Third, quickly transform government functions.
Although China has implemented the market economy for many years, the government's supervision of the securities market still stays in the planned economy management mode. In order to maintain the environment of fair competition in the capital market, effectively protect the legitimate rights and interests of stakeholders, and guide the effective allocation of social and economic resources, the government should change its functions as soon as possible, delegate power, and concentrate on standardizing and maintaining market order, instead of directly operating enterprises, so that the market self-discipline management system can really play its role and regain investors' confidence; Because local governments often advocate or even take administrative measures to protect local listed companies in order to maintain local economic development and improve their political achievements? Packaging? Behavior makes local listed companies more unscrupulous, so it is necessary for the central government to restrain this irrational financial behavior of local governments to help them overcome it? Standard thinking? . At the same time, the state should formulate a more perfect and scientific government supervision system, so that relevant government departments can perform their duties and cooperate with each other to avoid repeated law enforcement, so as to strengthen the authority and effectiveness of government law enforcement.
Fourth, improve the system of independent certified public accountants and strengthen self-discipline.
Accounting firms are independent organizations that supervise accounting behavior from the social level, and they are also the last line of defense to intercept accounting fraud information. However, due to the dependence of economic employment and business secrets between the certified public accountants and the audited units in China, it is difficult for certified public accountants to exercise their rights fairly and justly. Therefore, weak risk awareness, weak sense of responsibility and rough practice have become the common characteristics of accounting firms in China. Therefore, in order to give full play to the regulatory role of accounting firms, we must speed up the system reform of accounting firms and make them truly become independent regulatory agencies in China. At the same time, we can see that with the economic development of China, the moral level of certified public accountants is getting worse and worse. Money? Look, it has become the purpose of many certified public accountants, so if you want to really play certified public accountants? Economic police? To improve the function of external system, we should also pay attention to the cultivation of internal morality.
Five, strengthen the integrity education of accounting personnel, improve the cost of job loss.
With the continuous development of China's economy and the continuous improvement of the system, the requirements for accounting personnel in China are becoming more and more demanding. Whether we can adapt to the new accounting work is related to the long-term development of listed companies in China and whether we can join the world competition. It is the goal of honesty education in our country and an important means to control accounting fraud to make our accountants have good moral quality when they engage in accounting activities. Therefore, accountants should truly adhere to the professional standards of putting morality first, taking honesty as the foundation, following principles and resolutely not making false accounts, so that dedication, honesty and trustworthiness, honesty and self-discipline, adherence to standards, improving skills, strengthening services, participating in management, handling affairs according to law, objectivity and fairness, and keeping secrets become the mainstream thoughts of the accounting industry. It is necessary to establish and improve the credit file system of enterprises, institutions and accountants, give material and even spiritual rewards to those accountants who adhere to principles, are objective and fair, and make those who have bad records in credit files pay a greater price than those who practice fraud, and let accountants enhance their professional ethics awareness by direct means.
To sum up, accounting fraud has become a common problem that affects the healthy and rapid development of listed companies in China, and has also attracted the attention of all walks of life. Many scholars have made important achievements after years of research, and at the same time, the corresponding policies formulated by the state have made China's legal system constantly perfect and the corporate governance structure increasingly scientific. As long as we take both internal and external courses and persist for a long time, we will be able to control accounting fraud in China, create a healthier growth environment for listed companies in China, and make China's capital market more perfect.
refer to
Liang and Liu Wei. Causes and countermeasures of accounting information distortion of listed companies. Special Economic Zones. 2005 (08)
[2] Shi Peng. Solving the problem of accounting information distortion with Scientific Outlook on Development. Financial supervision.2010 (02).