Research on the Accounting Fraud Approaches of Listed Companies in China

After more than 20 years of vigorous development, there are more than 2,800 Chinese domestic listing companies by 2015, however, there is still endless stream of accounting fraud. Every year a number of companies have been punished by China Securities Regulatory Commission (CSRC) because of kinds of accounting fraud, This paper (1) define violation of information disclosure ; (2) set conceptual framework of accounting fraud; (3) presents a profile of accounting fraud approaches by reviewing the selective sample of alleged accounting fraud cases from 2011-2015 by CSRC; (4) demonstrates that Chinese listed companies show an obvious preference to the violation of information disclosure other than financial statement fraud; and (5) violation of integrality played a very important role within violation of information disclosure, such as disclosure information incompletely of guarantee, relation transaction and wayward stock trade etc. We examine the characteristics and typical methods of accounting fraud at this stage by the routine descriptive statistics. The sample comes from the penalties of CSRC over the five-year period from 2011-2015. This paper shed light on the facts that accounting fraud has not been controlled effectively, although there are sound system with respect to accounting standards, corporate governance, internal control, business operation and risk management, in fact, it has just been switched to violation of information fraud from financial statement fraud.