On the status of China's accounting integrity and Countermeasures

[Abstract] accounting accounting integrity is personal behavior, as part of corporate integrity, to promote the development of enterprises is extremely important. Lack of fiscal integrity, will seriously endanger the country's economic and management accounting information to solve the distortion problem, it becomes increasingly urgent and important to reshape the accounting integrity and curb accounting fraud, not only to strengthen the legal, institutional and construction rules, and must actively promote the spirit of good faith, the establishment of accounting credit system in order to improve the accounting integrity.

[Keywords:] the status quo because the accounting integrity measures

Accounting integrity, is honest and trustworthy accounting practices, specific performance is an objective accounting staff by business operations and enterprise accounting system requirements to report the user to provide true, complete, accurate and timely financial information, and the information is business production managers make the right business decisions are based, are investors an important basis for investment decisions. The quality of accounting information management for business, investors, creditors, government departments, stock exchanges and other parties concerned can make the right plays a decisive role in investment decisions. reliability, relevance, understandability and comparability of accounting information is the most important quality requirements, but in recent years, accounting information distortion is relatively common, has seriously affected the use of accounting information, the economic interests of the party In order to prevent the proliferation of the prevalence of false accounting information, remodeling accounting integrity must be a fundamental solution to this problem.

First, the status quo of China's accounting integrity and the outstanding issues
Accounting is the basis of the macroeconomic work work, but when the distortion of accounting information, the market risk will increase. Distortion of accounting information which means the accounting personnel in accounting, active or passive violation of rules and regulations, engage in change, making false accounts, generated does not match with the actual situation of the accounting information and provide it to users of accounting information. in the growth of the market economy environment, the dangers of distortion of accounting information is disastrous. China's current economic operations of some serious problems, such as loss of state assets, securities dysplasia, high transaction costs, corporate financing difficulties, largely associated with the distortion of accounting information.

1. Accounting major form of information distortion
(1) distortion of the original certificate. This distortion refers to the accounting process, the first record of economic business registration procedures that the original certificate is untrue when group interests, local interests, individual interests prevailed in some occasions, some The original documents are often becomes a business up and down, "co-operation" results in the original certificate to obtain, exaggerated or reduced economic content, false invoices, fictitious, and thus not a true reflection of the economic transactions of an enterprise, resulting in a source of distortion of accounting information .

(2 distortion of financial statements. This distortion refers to the enterprise in order to gloss over the financial statements, the use of asset restructuring, related party transactions, asset valuation, interest capitalization, trading hours and poor means to fictitious business operations engaged in unequal exchange, resulting in distortion of accounting information on the other hand, the use of accounting personnel passive distortion of the original certificate in accounting, afterwards, the process of reimbursement by the report found no intention of distortion caused by the situation also occurred.

(3 asset pricing distortion. Assets reflects the business, ability to service debt, part of the loss of corporate assets has become very serious, but on the surface in order to preserve their business performance, rather accounts and reality, but also no longer allowed to write off the value of scrap and inventory, while there is still a deliberate pricing error, resulting in distortion of asset valuation.

(4 disclosure of accounting information distortion of accounting information disclosure of accounting information is presented to the user's last program that is making the distortion of accounting information disclosure by various means to hide the true accounting information, including the disclosure of accounting information is not timely , inadequate disclosure of accounting information, accounting measurement methods are not accurate, such claims and liabilities is not clear, direct impact on the stakeholders for the use of accounting information and investor decisions.

(5 CPA lack credibility due to impulsive mentality and profit-driven mentality, as "economic police" certified public accountants and corporate financial fraud were complicit, conspires to cheat. This behavior not only makes the distortion of accounting information, severely affecting their users economic interests, but also the CPA industry suffered a serious credibility crisis.

(2) a means of accounting information
(An adjusted profit company revenues by more than dollars, less total costs, advance or delay recognition of revenue recognition method to the cost of inflated profits, to cover up bad business conditions, actions by the opposite approach to virtual cut profits or transfer of profits through related party transactions to pay less tax, and harming national interests.

(2 hypothetical investment projects. Most listed companies in order to obtain placements, additional qualifications, false accounting information, accounting operations, hypothetical investment projects, obtaining the shareholders' investment and damage the interests of investors.

(3 false statement of assets, including assets through false methods of assessment and virtual assets and inflated company assets by accelerated depreciation, the method of false claims by concealing assets, resulting in accounts and reality.

Second, the resulting lack of credibility because of accounting
1 market system is not perfect. China's current market information disclosure mechanism is not complete, poor market information transmission mechanism, leading to lack of information, market information dissemination is slow, market players have their own information asymmetry, resulting in difficult to get a good reputation extensive and rapid spread, promises in a timely manner and found to be exposed and duly punished. social integrity has not been formed, the lack of effective credit monitoring mechanism.

2 credit system is imperfect. Faith is not just a contract, it is reflected and embodied systems, system integrity is the result of imperfect credit crisis in relations between the deep-seated reasons. An orderly credit system is based on an efficient market economy. system foundation. At present, China has not yet fully established from the enterprises to operate independently, fair competition, effective regulation of the market system, financial system, taxation system, investment and financing system is far from perfect, so that the credit activities of the lack of institutional constraints.

Links to free download http://www.hi138.com 3. Corporate and accounting personnel of the sense of law. <<Accounting>> There has been a clear violation of the provisions of the liability of the persons concerned, the party and countries have consistently stressed that "the rule of law." But in real life, there are still "right above the law" phenomenon, the law and strictly enforced, impunity for common occurrences, but the enterprise itself but also the lack of self-restraint, the rule of law a sense of human loss to the authenticity of accounting information.

4 accounting information processing tools behind. According to the survey, only 20% of China's enterprises to adopt a computerized accounting, computerized accounting and most of the companies in turn used almost the same person to handle all business, which makes accounting information forgery, tampering easier, thus providing a direct result of false accounting information.

5. The lack of professional ethics in the accounting industry, in addition to employees bound by the law, should also have their own moral constraints, but now the real situation is that most unscrupulous accountants to comply with the leadership to pay less tax as the fundamental starting point, repeated acts of false accounting, which is fundamentally a lack of accounting professionals, professional ethics and self-concept of the weak.

Third, improve the integrity of the accounting measures
1. To improve the social environment, rebuild social credit. Integrity in the professional activities of all employees shall abide by professional ethics in the accounting profession to exist in an independent and unique among all sectors, especially by the impact of socio-economic environment, so further improve the integrity level of the whole society is particularly important, especially to enhance corporate managers, operators, supervisors and other market participants, investors and the integrity of consciousness, in order to promote improvement in the quality of accounting information which reshape the social credit should adhere to the following points: First: legislation first, second: demonstration of incentives, Third: market-driven, fourth: Germany and France simultaneously.

(2) to enhance the quality of professional ethics of accounting personnel the accounting officer is the accounting method of the specific actors, responsibility accounting in accordance with law, the accounting oversight functions currently emerging accounting information, accounting and other accounting industry oversight weakened the credit crisis, many accounting who became the de facto specific counterfeiters or performer. accounting code of ethics in accounting is the accounting officer should follow the code of ethics and criteria, therefore, accounting should continue to enhance self-awareness and awareness of professional ethics, strong foster honesty, integrity as the most important, adhere to standards, professional ethics not to cook the books.

3. To strengthen accounting oversight mechanisms to achieve the accounting supervision system of innovation in the enterprise, in order to ensure that the internal accounting control system is effective implementation, enterprises should set up an internal audit body or the establishment of internal control self-assessment system, strengthen the internal accounting control supervision and assessment of internal controls to detect vulnerabilities and risks, and for the emergence of new problems and new situations, and implementation of internal control weaknesses in a timely manner to amend or improve the control policy, so that rule, violators, illegal must be punished, in order to promote the correct punishment, to improve the quality of accounting information in order to better accomplish the internal control objectives. Outside the enterprise, to develop the CPA business, give full play to the role of social audit of justice, while a clear review of the CPA forensic accounting information liability.

4. Strengthen the accounting standards, improve the relevant legal system, which is fundamental to ensure the quality of accounting information mandatory approach, our accounting system is not perfect laws and regulations, leading to distortion of accounting information is an important reason. To ensure the orderly operation of the market economy, effectively protect the interests of investors and creditors, we must continue to improve accounting standards and accounting system, and to develop appropriate implementation details, making it more accurate and full operability while to some extent, the laws and regulations to increase penalties, compensation, enforcement, and strengthen supporting the implementation of laws and regulations to accelerate the pace of building the legal system of accounting in the enforcement of violations of accounting regulations of the act, in addition to administrative sanctions, but also responsible for the instigation of acts of fraud and accounting officers held criminally responsible in the legal education employees, and strengthen the legal awareness of employees to learn to master the financial laws and regulations and related financial securities and other financial and taxation policies and regulations, in order to avoid distortion of accounting information. Finally, to establish a sound accounting information system of norms, regulate corporate accounting information disclosure content and format, requires companies to disclose the accounting policy choices and changes, and major environmental changes on the business impact. References:
[1] Ding Changwei: Survey of Accounting integrity and countermeasures [J]. The knowledge economy, 2010 (18)
[2] Cai Xiuyong: On the accounting integrity [J]. Economist, 2006 (07)
[3] Chen Chenglong: society is calling for accounting integrity [J]. Introduction and consultation, 2005 (04)
[4] Xue Ali: the status quo of China's accounting staff of professional ethics and countermeasures [J]. The financial economy, 2010 (16)

Links to free download http://www.hi138.com