How Can I Identify Accounting Fraud?
Accounting fraud is the unlawful act of an accounting entity in the accounting activities of deliberately forming false accounting information, or deliberately disclosing false accounting information. It occurs not only in listed companies, but also in non-listed companies, non-corporate enterprises, and non-enterprise administrative, institutional and social organizations.
Accounting fraud
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Accounting fraud is the unlawful act of an accounting entity in the accounting activities to deliberately form false accounting information, or to intentionally disclose false accounting information. It happens both
main body.
The significance of clarifying the subject of accounting fraud lies in determining who should bear legal responsibility for accounting fraud. The author believes that the subject of the implementation of accounting fraud should be the person in charge of the unit and the accounting personnel as referred to in Chinese accounting law. If
Tax treatment.
That is, tax evasion, tax evasion, tax fraud, tax avoidance, or seeking other illegal tax-related benefits;
Corruption or embezzlement.
It is mainly the individual or collective leadership of the unit, or some or individual accounting executives and accounting professionals, who use their terms of reference or convenience to conspiracy or individually embezzle and illegally occupy the property, state property, and other people's property, rights and interests;
"Smoothing."
That is to achieve various illegal expenditures of the unit, improper
According to the purpose and illegal nature of accounting fraud, accounting fraud can be divided into accounting civil fraud, accounting administrative fraud and accounting criminal fraud. Among them, those who provide false accounting information or purposely "leak" false accounting information to others for the purpose of obtaining ordinary civil or commercial interests are accounting civil fraud; intentionally report for the purpose of deceiving the state management agency, corporate authority or shareholder False accounting information and deliberate confusion of accounting policies are accounting administrative fraud; for the purpose of obtaining illegal benefits or seeking illegal benefits for others, intentionally concealing transaction facts, fictitious transactions, and obfuscating accounting policies, etc. If the circumstances are serious and constitute a crime, accounting Criminal fraud.
In addition, accounting fraud can be divided into fictitious accounting fraud, concealed accounting fraud, and confusing accounting fraud according to its behavior; according to its subject, it can be divided into unit accounting fraud and personal accounting fraud; according to its degree of illegality Can be divided into general accounting fraud and accounting crime.
For a long time, due to accounting fraud and other illegal
In China's current legal system, the legislation that involves accounting activities and accounting fraud mainly includes: the Accounting Law of the People's Republic of China as amended in 1999, the Criminal Law of the People's Republic of China as amended in 1997, and the Audit Law of the People's Republic of China, Law of the People's Republic of China on Certified Public Accountants, and Law of the People's Republic of China on Securities.
On the face of it, China's current laws seem to have sound legal norms to stop, punish, and eradicate accounting fraud. In fact, there are still many deficiencies and disadvantages in the current laws and regulations on accounting fraud, which are mainly reflected in:
1. The "Accounting Law" and the related "Certified Accountant Law" and "Audit Law" all use a lot of purely authorized words such as "may" and "entitlement", but there is no information on how to use and exercise these powers. , And the corresponding legal provisions on restrictive measures and supervision mechanisms. Authorized financial departments and relevant administrative departments and their staff members only have the right and may to supervise and punish accounting fraud according to law. There are no corresponding norms and restrictions on the exercise of such rights, how to exercise them, and whether they are exercised properly. In this way, objectively, the situation that the relevant departments and their staff members have no "duties" to be neglected, and that they are selfless and have no need to dance. Based on this, the law's provisions that "the staff of the financial department and relevant administrative departments should be investigated for negligence in their duties and malpractices for personal gain in the implementation of supervision and management" have failed to achieve the expected effects of supervision, management and supervision.
2. The legal authority given to accounting institutions and accounting personnel to resist accounting fraud by their units is too weak. Under the current system, accounting institutions and accounting personnel have not obtained independent administrative and economic status protected by law. The person in charge of the unit actually controls the labor and personnel power of the accounting personnel, and controls the fate and promotion of financial accounting personnel. The accounting supervision power of accounting personnel in the sense of accounting law cannot be operated at all. As soon as the person in charge of the enterprise orders or implies that the accounting personnel have made a fraud, the accounting personnel will immediately be trapped in a situation where "people are in the rivers and lakes and cannot help themselves". In reality, a lot of accounting fraud comes from this.
3. In the "Accounting Law"
To improve China's accounting legal system and strengthen legal restrictions on accounting fraud, at least the following points should be considered:
(1) Further strengthen the theoretical research on the subjective psychological state and objective behavior of accounting fraud, and "know oneself and the other", and further improve accounting legislation on this basis. In the legal description of accounting fraud, a legislative system combining enumeration and generalization should be adopted.
(2) Through the improvement of accounting-related legislation, the coordination, convergence, and unification of the Accounting Law, the Certified Public Accountants Law, the Audit Law, and the Securities Law will be achieved. Further clarify the unified administrative department of accounting management and punishment, properly handle the relationship between the accounting industry management and government audit in the supervision of accounting activities, the relationship between the accounting industry management and social audit in the supervision of accounting activities, and the accounting industry management The relationship with the State Securities Regulatory Department in the process of supervising accounting activities has really formed a sound, coordinated, in line with the requirements of the internal laws of social and economic development, an accounting management and supervision system capable of resolving internal contradictions and conflicts and operating effectively, which is of great significance. . Among them, it is particularly necessary to reform the existing social audit system and strengthen the government's audit supervision function.
(3) Strengthen the punishment of accounting fraud through amendments to relevant laws and regulations. It is necessary for people to establish a supervision and management system and a punishment system that takes a higher absolute amount as the starting point and implements a multiple penalty system based on the illegal benefits expected by the actor as the main punishment method. .
(4) With reference to the legislative style of Article 63 of the "Law of the People's Republic of China on Tax Collection and Management", delete a large number of "authorized" and "authorized" words in the Accounting Law and its related laws and regulations. Clearly stipulate the scope of powers, legal duties, and scope of rights of the accounting management organs, and clarify the legal consequences that the accounting authorities and their staff should bear if they fail to strictly perform their legal duties.
