The Meaning And Root Of Corporate Financial Fraud

Our country is also faced with the problem of how to standardize the company's financial information disclosure system and reshape the company's credit.

Therefore, analyzing the deep-seated reasons behind the fraudulent behavior of financial accounting, conducting international comparison and reflection, and adopting targeted measures will undoubtedly be of great significance for further reform and opening up of China's capital market and the rapid and steady development of the economy.

The American Institute of Certified Public Accountants (AICPA) is in SAS82

In the audit's consideration of fraud, the company's financial fraud is defined as "deliberately misreporting, omission or disclosure in the financial statements to deceive users of financial statements."

Corporate financial fraud refers to the behavior of interested parties in accounting activities who deliberately make false accounting information in advance in order to avoid paying taxes, share high dividends and extract secret funds and so on.

The occurrence of financial fraud is not only due to the imperfect corporate governance structure, the ambiguous relationship of property rights, the defects of accounting and auditing system, but also the macroscopic problems such as the imperfect regulation system and the weakening of market supervision. It is a comprehensive reflection of many social factors in accounting activities.

Dr. Donald Karise is a renowned professor in the field of fraud research. He has made a pioneering contribution in this field and is known as an anti fraud expert.

He established and developed the theory of fraud triangle to explain why people do it.

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Carey came to the conclusion: when motivation, opportunity and

When three important factors come together, the tendency to cheat is likely to happen.

Each of the three factors is necessary and interrelated in a person's real fraud.

Lack of any factor will not make a person cheat.

Every company executor needs to understand this fraud triangle and understand why employees engage in all kinds of fraudulent practices.

In 1980s, Dr. Steve W Bermingham of the University of Yang Yang studied and analyzed fraud.

The study shows that those living conditions above average and having personal or gambling debts, having the desire to have personal status, or the identity pressure from family and their fellow peers, are the most vulnerable to fraud.

Those who consider themselves underpaid and not valued are more likely to steal from their jobs.

In addition to the traditional fraud theory described earlier, Martin T MaetinT.Biegelman designed some new theories in the book "road map to prevent fraud and internal control".

Such as: the theory of fraudulent fries, bad apple theory of fraud, fraud theory of low hanging fruit, the theory of addition and subtraction of fraudulent practices, the theory of fraudulent employees, and so on.