Abstract

Since the 1990s, worldwide corporate financial reporting fraud has become increasingly rampant. Fraudulent behavior in corporate financial reports in my country is also relatively serious. To this end, my country's new "Accounting Law" specifically formulates provisions to prevent financial reporting fraud and stipulates a three-in-one supervision system among enterprises, society and the government. In view of financial reporting fraud, it is necessary to study the root causes and motivations of financial reporting fraud from a social perspective, so as to prevent its behavior.

This article starts from understanding the meaning of accounting fraud, takes the method of accounting fraud as an entry point, and understands the causes of accounting fraud: economic interest conflicts are the root cause of financial reporting fraud, and market politics are the root cause of financial reporting fraud. Behavioral additives; business leaders are the directors of financial reporting fraud, and the weakening of national financial supervision has led to the formation of accounting fraud. For this reason, we must learn to identify accounting fraud, increase efforts to severely punish accounting fraud, and at the same time, we must learn to identify accounting fraud. Strengthen the internal control of accounting supervision and strictly prevent the sources of accounting fraud.

Finally, the author proposes that only by identifying the exact causes and prescribing the right medicine can we solve the various problems existing in accounting supervision in our country. Only in this way can we truly ensure the authenticity and reliability of accounting information and make the greatest contribution to our country's economic construction.

Keywords accounting supervision; accounting internal control; accounting fraud; accounting fraud risk

Contents

1 The meaning and methods of accounting fraud

< p>1.1 The meaning of accounting fraud…………………………………………()

1.2 The usual ways of accounting fraud……………… …………()

2 Analysis of accounting fraud

2.1 Conflict of economic interests is the root cause of corporate financial reporting fraud…………()

2.2 Market politics is the additive that produces financial reporting fraud…………()

2.3 The person in charge of the company is the director of financial reporting fraud………………()

2.4 The initiative of accounting rules and regulations depends on the effectiveness of national financial supervision...( )

3 Countermeasures to prevent accounting fraud

3.1 Learn to identify accounting fraud, which is the key to prevention The primary condition for accounting fraud... ()

3.1.1 Insight into the means of accounting fraud...…………………………………………()

a. Income Ways of fraud………………………………………………( )

b. Means of expense fraud…………………………………… ………… ( )

c. Non-operating profit and loss manipulation profits ……………………………… ( )

d. Common inventories Fraudulent means…………………………………………( )

3.2 Increasing penalties is currently the key to preventing and resolving accounting fraud risks… ()

< p>3.3 Strengthen the internal control of accounting and prevent the sources of accounting fraud... ()

3.4 Improving the moral level of accounting practitioners is the foundation for preventing accounting fraud... ( )

References…………………………………………………………………………………… ( )

1 The meaning and methods of accounting fraud

1.1 The meaning of accounting fraud

Fraud refers to the behavior of people inside and outside the organization who use deception and other illegal means to damage or seek the economic interests of the organization, and at the same time may bring unfair benefits to individuals. Fraud is an intentional act of cheating by illegal means through premeditation and careful planning to achieve undesirable purposes. From the perspective of the subject of fraud, fraud can be divided into organizational fraud and individual fraud. Organizational fraud refers to the intentional behavior in which organizational leaders authorize relevant personnel to use unfair and illegal means to harm the interests of the country and other units for the benefit of the unit and its members. Personal fraud refers to the intentional behavior of employees who use improper and illegal means for personal gain to harm the interests of the country, the organization or others.

1.2 Common ways of accounting fraud

In accounting practice, accounting information that does not comply with the spirit of accounting standards and the requirements of the accounting system is distorted accounting information.

The main cause of distorted accounting information is management fraud, that is, under the instruction of managers, using the flexibility given to departments by accounting regulations to provide information in a biased or inductive manner, or even creating false accounts in violation of accounting regulations. In fact, management fraud is the accounting fraud that is most harmful, has the most serious consequences, and is also the most difficult to detect and prevent.

The common practices of accounting fraud include forging and altering records and vouchers, misappropriating assets, concealing or deleting transactions or events, recording false transactions or events, deliberately using improper accounting policies, etc. The commonly used methods at present are: first, taking advantage of the defects and weak links of the internal control system to engage in fraud in order to satisfy selfish desires. For example, cashiers take advantage of the disadvantage of not keeping blank checks, financial seals, and legal person seals separately to issue checks privately and misappropriate public funds; expense reimbursement accountants take advantage of the lax reimbursement approval system and reimburse personal consumption bills together with relevant business expenses. Account, which is usually referred to as a false hat collar. The second is to recruit people who are incompatible with their responsibilities to collude in fraud. For example, accounting personnel recruit custodians to embezzle state property. Expense accounting personnel colluded with cashiers to falsely list expenses and embezzle public funds; revenue accounting personnel colluded with cashiers to not record income, and expenditure accounting personnel colluded with cashiers to record excessive expenditures and share them privately. The third is to conceal or tamper with the vouchers. Such as invoice fraud, forged documents, "yin and yang invoices", "big head and small tail" invoices, and false issuance of forged special value-added tax invoices. The fourth is fictitious business. The cashier fabricated travel expenses in order to obtain cash; the cashier fabricated expenses in order to embezzle cash. The fifth is to transfer expenses within each accounting period and postpone the recognition of expenses. Adjust profits through intertemporal amortization items such as depreciation and pending accounts. By making less or no mention of fixed asset depreciation, the expenses that should be reflected in the current period's statements are placed on the debit side of the inter-temporal amortization accounts of "prepaid expenses", "deferred assets" or "accrued expenses". Adjust profits by deferring the recognition of costs and expenses. Sixth, malicious use of imperfections and loopholes in the accounting system to achieve bad purposes.

2 Analysis of accounting fraud

2.1 Contradictions of economic interests are the root cause of corporate financial report fraud

The relationship between enterprises and the state is not only unified; contradiction. From a material analysis, this contradiction is the contradiction in the distribution of economic interests in the movement of social capital. The development pursued by the country and enterprises is urgent. However, the development goals are subjective designs and often differ from the objective reality. Countries always rely on power to obtain the material basis for development - taxation; companies always want to obtain the material basis for survival and development - profits. Both taxes and profits come from the surplus value created by the movement of capital in society. When the limited surplus value cannot meet the subjective target needs of the two, the country and enterprises begin to borrow money continuously. Taxation, profits, and debt are all part of the process of capital movement, and the pressure of high debt has prompted both parties to intensify their enjoyment of surplus value and their occupation of idle social funds. Therefore, the process of capital movement also becomes a process in which the state and enterprises create conflicts in the distribution of interests. At the same time, this contradiction becomes more and more complex with the diversification of capital composition, and becomes more and more intense with the acceleration of capital movement. This is a global phenomenon. More importantly: the amount of social debt capital and the amount of fraud in corporate financial reports vaguely outline a proportional line. Although it cannot be theoretically demonstrated for the time being, traces of this line can be seen from the relevant data on corporate debt in my country. : The triangular debt among enterprises nationwide was 352.3 billion yuan in 1991; 926.9 billion yuan in 1996; 1.2 trillion yuan in 2000. In 1998, bank interest rates were 60%. These figures are not only a reflection of the social credit situation, they also coincide with the increase in corporate financial reporting fraud cases.

The state maintains social and economic order through laws, systems and regulations, and requires enterprises to provide relevant accounting information truthfully, completely and fairly, thereby supervising the safe circulation of capital movements. Regardless of whether the laws, systems, and regulations promulgated by the state are fair and reasonable, enterprises must implement them. Enterprises are in fierce market competition, and they try to find gaps and flaws between laws, systems and regulations to process accounting data. Even when necessary, "intentional and reckless false reporting or omission of accounting information" is used to conceal and change the true process of capital movement. Its purpose: firstly, to possess economic interests that should not belong to oneself; secondly, to resist the unfairness of the national economic interest distribution system. Therefore, the authenticity and completeness of a company's financial reports have become the focus of conflicts between the economic interests of the company and the country.

The contradiction between the economic interests of enterprises and the country is objective and inevitable, and this contradiction is also universal. It is not individual enterprises but all enterprises that are motivated to commit financial reporting fraud. In addition, even if some companies have no financial reporting fraud in history, it cannot be denied that there is no possibility of fraud now and in the future. Financial reporting fraud is an arbitrary choice in different accounting periods according to the needs of the company. Therefore, in order to curb this behavior, the state faces two tasks: on the one hand, it constantly adjusts laws, systems, regulations, and tax rates to enhance the fairness of the distribution of economic benefits and reduce conflicts with enterprises; on the other hand, it constantly controls the urgency of self-development. sex, reduce the total amount of social debt capital, adjust interest rates and exchange rates in a timely manner, and reduce the burden of interest transferred to enterprises in the movement of social capital. The weakening of the conflict between the economic interests of the state and enterprises is a prerequisite for reducing financial reporting fraud. "Downplaying contradictions" does not mean concessions to national interests, but the best choice for the superstructure to adapt to the economic base.

2.2 Market politics is an additive that produces financial reporting fraud

Financial reporting fraud occurs in the economic field but is deeply marked by market politics. In capitalist society, political power serves as the spokesperson of capital, and there is an inevitable connection between money and power. This can be seen from the fund-raising transactions revealed during the US presidential election, the bribery insider revelations during the German Chancellor race, and the use of gold dollar coupons in Taiwan elections. Market politics erodes market fairness. In a socialist society, although there are some institutional restrictions, with the activation of the market economy, money and power have gradually become closer. Fraud in financial reports often reflects an urgent political need. If you have money, you can improve your social status through sponsorship and donations. As a result, financial reporting fraud has opened up a convenient channel for promotion and wealth.

2.3 The person in charge of the company is the director of financial reporting fraud

The actual situation of the company is closely related to the expected value of the person in charge of the company, driven by the goals of maximizing profits and maximizing corporate value. , corporate leaders do not hesitate to drink poison to quench their thirst, and satisfy their desires through financial reporting fraud. A series of financial reporting fraud cases of listed companies in my country, such as the Yinguangxia incident, have also made the world appreciate the talents and strategies of corporate leaders in financial reporting fraud.

An important reason for this phenomenon is that laws without quantification have no power. We know that there are a lot of laws in the United States, and they are more quantified and less abstract. They are actually created by the market economy. Our country should also follow the laws of market economy in formulating economic laws, increase quantitative standards and reduce principled and abstract clauses. Financial reporting information has economic consequences. Creating false information through financial reporting fraud, possessing and embezzling other people's property and robbing a bank are no different in motivation. In fact, it is a criminal act. There is no "constituting a crime" and "not constituting a crime". The only difference is the severity. Therefore, all cases of financial reporting fraud must be submitted to the court for trial. Whether to prosecute or exempt from prosecution is legally defined. The prosecuted criminals are sentenced according to the economic consequences caused.

2.4 The initiative of accounting rules and regulations depends on the effectiveness of national financial supervision

Many people believe that financial reporting fraud is due to the low professional quality of accountants, poor professional ethics and legal awareness. Caused by indifference. The author believes that as an economic man, before taking any action, people must consider whether the action is worthwhile (i.e., value rationality), and at the same time estimate its feasibility (i.e., instrumental rationality). Whether it is economic interests or political interests, unit accountants must serve corporate goals. Politically, unit accountants do not have the ability to argue with the person in charge of the company; legally, the cost of "right to refuse" is unbearable for accountants, and the "consequence" of reporting is more difficult than the "consequence" of making false accounts. Swallow; Economically, unit accountants can also enjoy the short-term benefits brought by a fraudulent financial report. Therefore, corporate accounting supervision is only a passive form of supervision, and the initiative of corporate accounting to implement the "Accounting Law" and accounting rules and regulations depends on the effectiveness of national financial supervision. On the one hand, it implements accounting supervision so that unit accountants can enhance their sense of the deterrent power of accounting regulations, thereby improving the conscientiousness of accountants in implementing accounting regulations; on the other hand, it rewards accounting reports. The most knowledgeable person about financial reporting fraud is the accountant. Accounting reports When the benefits are greater than the cost of reporting, financial reporting fraud will encounter a fatal obstacle.

3 Countermeasures to Prevent Accounting Fraud

3.1 Learn to identify accounting fraud, which is the first condition to prevent accounting fraud

Accounting fraud is a way to obtain unfair profits For the purpose of profit, when preparing financial reports, it violates accounting standards and accounting systems and other relevant laws and regulations, uses accounting techniques, and adopts deceptive means to deliberately misrepresent financial facts and financial information, causing the accounting statements to produce untrue reflections. It mainly includes: forging or altering records or vouchers; misappropriating assets; concealing or deleting transactions or events; recording false transactions or events; deliberately using improper accounting policies, etc.

In accounting practice, accounting information that does not comply with the spirit of accounting standards and the requirements of accounting systems is classified as distorted accounting information. The main cause of distorted accounting information is management fraud, that is, under the instruction of managers, using the flexibility given to departments by accounting regulations to provide information in a biased or inductive manner, or even creating false accounts in violation of accounting regulations. In fact, management fraud is the accounting fraud that is most harmful, has the most serious consequences, and is also the most difficult to detect and prevent.

3.1.1 Insight into accounting fraud methods

a. Ways of income fraud

(1) Expand the scope of sales accounting to inflate income. The main methods include: recognizing sales repurchase, sales leaseback and other businesses as income; processing outsourcing and recovery of entrusted processing business, and recognizing them as sales and purchase business respectively through opposite invoicing; fictionalizing non-operating income as operating income.

(2) Recognize income in advance or record problematic income. It mainly includes: recognizing revenue when goods have not been sold or services have been provided; recognizing goods sales revenue in advance for sending goods and entrusting consignment sales; recognizing sales of products to affiliated institutions as revenue; when the customer terminates, cancels or cancels the sale. The option to defer recognizes revenue prematurely.

(3) Use financial statement consolidation technology to inflate revenue. Whether it is international accounting standards or my country's accounting standards, possession of substantial control rights is the criterion for inclusion in the scope of consolidation. In this way, on the one hand, whether the relevant company has "substantial control" must rely on the professional judgment of accounting personnel; on the other hand, management authorities can further "broaden" financial statements by lengthening the control chain and building a complex corporate system. Consolidation scope. These gray areas of accounting choices undoubtedly create conditions for corporate management to commit financial fraud.

b. Expense fraud methods

(1) Capitalization of income expenditures. Capitalization of revenue expenditures means deliberately listing period expenses and operating costs that should be proportional to current period income as long-term assets to inflate profits.

(2) Targeted cost amortization. For financing purposes such as rights issue and additional issuance, or to cater to market profit expectations, companies often artificially adjust the basis and proportion of provision or promotion of expenses such as advertising expenses, depreciation expenses, research and development expenses, estimated losses, amortization of intangible assets, etc. The extension or shortening of the depreciation and amortization periods of fixed assets and intangible assets can reduce or increase current expenses.

c. Non-operating profit and loss manipulation profits

Enterprises often create non-operating income through disposal and transfer of subsidiaries, non-monetary transactions, debt restructuring and other means to manipulate profits. The main methods of profit fraud using non-operating profits and losses are as follows.

(1) Debt restructuring. The new standards change the original practice of counting debts that are exempted or underpaid by the debtor due to creditor concessions into capital reserves, to the practice of counting debt restructuring proceeds into non-operating income. Therefore, some controlling shareholders of listed companies are likely to manipulate profits by recognizing restructuring gains through debt restructuring when the company suffers losses, or in order to maintain the company's performance or issue shares.

(2) Non-monetary asset exchange. The new standards stipulate that if there is a related relationship between the two parties to the transaction, the exchange of non-monetary assets that may occur does not have commercial substance, that is, the difference will not be included in profits and losses. Therefore, if some listed companies want to manipulate profits, they will find ways to avoid it and de-link related transactions. In the exchange of non-monetary assets, there is also a certain degree of accounting flexibility in the company's judgment on the business substance, which leaves some room for profit manipulation by listed companies.

(3) Borrowing costs. The new standard expands the scope of assets for which borrowing costs are capitalized to include inventories and investment properties that take a considerable time to reach a salable state.

The scope of capitalized borrowings has also been expanded from specialized borrowings to specialized borrowings and general borrowings. In this way, some companies may decide on the interest expenses of general borrowings and assets that meet the capitalization conditions in order to achieve the purpose of manipulating corporate profits.

(4) Intangible assets. Although the new guidelines distinguish between the definitions of the research phase and the development phase, in practice, it is difficult to clearly separate the two phases. Therefore, some companies may subjectively divide these two stages to determine the dividing point between expense and capitalization of R&D expenditures in order to achieve the purpose of manipulating profits. In addition, the amortization life of intangible assets in the new standards is no longer limited to the straight-line method, and the amortization life is no longer fixed. This also provides a way for some companies to use the amortization method or amortization life of intangible assets to manipulate profits. .

(5) Government subsidies. The new standards stipulate that "if it is used to compensate the enterprise for relevant expenses or losses in the future period, it will be recognized as deferred income; if it is used to compensate for the relevant expenses or losses that have already occurred, it will be included in the current profit and loss." Here, "has occurred" and "will occur" are two different tenses, but they are related to the confirmation amount of the subsidy and the degree of profit realization for the current period. Under the current environment, whether it is truthfully confirmed depends entirely on the integrity of the company. , so some companies may artificially adjust the reasons for obtaining subsidies to control current profits.

(6) Fixed assets. The new standards require companies to review the depreciation life, method and estimated net residual value of fixed assets at least once a year. Whenever there is a difference from the original estimate, the company should adjust the depreciation life and net residual value of fixed assets, and the adjustment method shall adopt the prospective application method. , no retrospective adjustment is required. Therefore, as long as the company finds evidence that the useful life of its fixed assets is different from the original estimate, it can change the accounting estimate and adjust the performance to achieve the purpose of manipulating profits.

(7) Asset impairment. The assets that are clearly not allowed to be reversed for impairment in the new standards are mainly fixed assets, intangible assets, projects under construction and inventories. Impairment provisions for other assets such as accounts receivable, short-term investments, long-term investments, entrusted loans, etc. still remain. Can be transferred back. Therefore, although the new standards have a certain inhibitory effect on the profit manipulation of listed companies, they still leave some room for listed companies to manipulate profits. Moreover, the method and proportion of impairment provisions can still be chosen by the listed company. In order to avoid losses in the current year, the company may not make sufficient impairment provisions as required, leaving it to make "previous year profit and loss adjustments" in subsequent years to whitewash its accounting statements. purpose.

(8) Fair value. The new standards introduce "fair value" into China's accounting system in accordance with current international practice. However, due to the underdeveloped market economy in my country, the application of fair value requires human judgment in many processes. In addition, the quality of my country's accounting practitioners varies, making it difficult to do so. To be truly fair, some companies may use "fair value" to adjust to manipulate profits.

d. Common methods of inventory fraud

There are two main situations of inventory fraud, namely, false increase in inventory and false reduction in inventory. The means are as follows.

(1) Manipulate the circulation link and inflate costs. This includes fictitious inventory in the procurement process, forging various documents to increase warehousing costs, etc.; In the production and collection process, incorrect expense collection, artificially increasing inventory costs, etc.; In the sales and issuance process, arbitrary changes are made. Inventory valuation methods, artificial reduction of the quantity of issued inventory, failure to carry forward sales costs as required at the end of the period, etc.

(2) Manipulate inventory counts and fabricate inventory. Mainly include: artificial manipulation of repeated inventory counting, concealment of damaged inventory and inventory losses, fictitious inventory inventory surplus, etc.

(3) Deliberately incorrect inventory capitalization. That is, some expenses that should have been expensed in the current period are not included in current expenses in accordance with regulations but are artificially capitalized to achieve the purpose of inflating inventory assets, reducing current expenses, and ultimately achieving the purpose of inflating current profits.

(4) Using the special business of inventory to commit fraud. Enterprises manipulate profits through debt restructuring non-monetary transactions, related party transactions, abuse of accounting policies and false timing differences in accounting estimate changes, false disclosures, etc.

3.2 Increasing penalties is the key to preventing and resolving accounting fraud risks at present

In view of the common problems such as weak sense of responsibility, weak risk awareness, and rough professional work, strengthen external supervision It is still an important task for the competent government departments.

They must adopt a responsible attitude and constantly improve their professional ethics and professional standards; at the same time, all competent departments must truly assume the responsibility for restraint. Once there is behavior that violates professional ethics or dereliction of duty, the management department must not tolerate or accommodate it, and should increase efforts The intensity of punishment.

The continuous information disclosure system is conducive to eliminating incomplete and asymmetric information, inhibiting insider trading and fraud, and achieving transparent and standardized management. Given the current lack of self-discipline in some financial departments, the authenticity of accounting information can only be guaranteed under the strict supervision of regulatory authorities. Information in the financial department must be strictly reviewed, and those found guilty of falsehoods must be severely punished in accordance with the law. Introduce a civil compensation system as soon as possible, and hold the parties responsible and compensate those who provide false information and cause losses to units and collectives. At present, the disciplinary inspection, supervision and audit departments have increased their supervision and inspection of financial budgets and expenditures, and improved the accuracy of accounting information, which will make it more difficult to falsify accounting information.

Strict law enforcement and increased punishment are reliable guarantees for the implementation of the above measures. In order to improve the quality of accounting information, my country's legislative body and relevant management departments have formulated and issued dozens of relevant regulations and systems, such as the "Accounting Law", "Accounting Standards for Enterprises", "Accounting Systems for Enterprises", etc. Although these regulations and The system needs to be further improved, but as long as it is implemented carefully, the quality of accounting information can basically be guaranteed, and deliberate falsification will not occur. The key to the current problem is that the implementation of laws and regulations is very poor. Many units know the law and break it, and they violate it both covertly and covertly. Therefore, increasing the intensity of inspections on the implementation of relevant laws and regulations is the first issue we need to solve. Because the punishment for deliberate counterfeiters is insufficient and only scratches their skin but leaves their bones untouched, some units and individuals still dare to take risks. In the future, penalties must be increased for those who maliciously commit fraud and produce serious consequences. Not only must the relevant responsible persons be severely punished, but the relevant units must also be held legally responsible to warn latecomers not to repeat the same mistakes.

3.3 Strengthen the internal control of accounting and prevent the source of accounting fraud

Nowadays, the following defects are common in the corporate governance structure, internal control is weak, and there is a lack of internal control standard system. my country has yet to formally introduce authoritative internal control standards, and there is a lack of a recognized standard system for the integrity, rationality and effectiveness of internal control; the positioning of internal audit institutions is unclear; there are serious cross-appointment situations and a lack of independence , leadership responsibilities are diluted, and effective checks and balances cannot be carried out on "key people"; disciplinary inspection, supervision and auditing cannot fully play their role, etc.

One of the key measures to solve the distortion of accounting information is how to change the working conditions and environment of accounting personnel, actively explore the accounting delegation system or the accounting centralized accounting system, implement the supervision rights of accounting personnel, and protect the legality of accounting personnel. rights and interests. At the same time, internal auditing and supervision should be strengthened to eliminate accounting fraud at its source. Internal audit is an important organizational part of an enterprise's internal control and is a re-control of internal control. The internal audit department is responsible for two tasks: first, planning and designing specific systems, methods and procedures for internal control, and being responsible for the continuous integration, improvement, improvement and modification of the internal control system after its establishment. The second is the supervision, inspection and effective evaluation of the implementation process of the internal control system. While emphasizing the construction of the unit's internal control system, it is necessary to strengthen the construction of the internal audit institution, give it a certain status, establish its sufficient authority, ensure its independence, and do everything possible to improve the professional knowledge and adaptability of the internal audit personnel. The internal control capabilities of modern enterprises enable internal controls to be truly implemented.

3.4 Improving the ethical level of accounting practitioners is the basis for preventing accounting fraud

Accounting professional ethics refers to the accounting professional ethics that should be followed in accounting professional activities, reflect the characteristics of accounting profession, and adjust accounting Code of Professional Conduct and Code of Professional Relations. Accounting is a profession that is highly technical and policy-oriented. Since the economic activities and accounting of enterprises involve the interests of many groups, coupled with the complexity, variability and uncertainty of economic business, as well as the selectivity of the accounting method itself, When accounting personnel handle economic business, they not only need to follow economic regulations, etc., but also make judgments based on their own values. Motivation is the forerunner of behavior, and what kind of motivation will lead to what kind of behavior. Accounting behavior is governed by inner beliefs, and the good or evil of beliefs will lead to the right or wrong of behavior.

Accounting professional ethics puts forward corresponding requirements for accounting behavioral motivations, such as honesty and trustworthiness, objectivity and fairness, etc., guiding, persuading, and constraining accountants to establish correct professional concepts and follow professional ethical requirements, thereby achieving the purpose of standardizing accounting behavior.

Strengthen the construction of accounting professional ethics and create a good social environment. First, widely publicize the importance of accounting integrity, educate accountants to take "no false accounting" as the moral code and the "Accounting Law" as the code of conduct, establish a correct outlook on life and career, be self-disciplined, self-respecting, self-improvement, and strive for excellence. Resist pressure, resist temptation, and maintain a good social image of accountants; second, strengthen the continuing education of accountants, promote the concept of lifelong education for accountants, teach on-the-job, learn various business knowledge and financial laws and regulations, so that they can continuously improve their quality , accumulate experience, update knowledge, improve their professional judgment skills, effectively perform legal responsibilities, adhere to principles, and be loyal to their duties; third, further improve the qualifications, assessment, rewards and punishments, training, and withdrawal of accounting practitioners, and at the same time integrate accounting professional ethics Incorporate it into the scope of the accounting qualification examination and daily management of accounting, promote and improve the standardization and legalization of accounting professional ethics, and make accounting professional ethics education a constant and unremitting content; fourth, establish and implement enterprises, intermediary agencies, accounting The employee integrity file management system conducts annual reviews and evaluations every year to praise good credit and expose untrustworthy behavior. In serious cases, their qualifications will be revoked, and the evaluation results will be recorded in personal integrity files, so that the reputation of counterfeiting units and individuals will be tarnished. Pay the price and enhance the integrity awareness of the unit and accounting personnel; fifth, effectively safeguard the legitimate rights and interests of accounting personnel, protect and reward those accounting personnel who adhere to principles, act in accordance with the law, and fulfill their duties, so that those who are honest and honest and "will not bend for three buckets of rice" Accountants must "stand strong and stand firm", create a good environment that suppresses evil and promotes good, encourages those who are trustworthy and law-abiding, punishes those who break trust and violate the law, and promotes the observance of accounting professional ethics.

Accounting fraud is a serious social problem that will exist for a long time to come. To combat fraud, we must approach it from many aspects, and treating both the symptoms and the root causes is the way out. The construction of legal governance, effective supervision, prevention, discovery, and investigation (punishment) mechanisms are indispensable; regulating company management authorities, intermediary agencies, and government behavior are indispensable. We should constantly discover the crux of the problem in work and practice, constantly improve laws and regulations, increase supervision, improve the supervision system, and strengthen the vocational education and quality education of accounting personnel to fundamentally solve this problem.

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