Causes distortion of accounting information and control measures

1、Causes distortion of accounting information and control measures     Abstract: The accounting information distortion is the accounting information for various reasons does not truly reflect the financial position, operating results and cash flow position. Distortion of accounting

2、 information exists objectively the rules of distortion, violation of distortion, behavioral distortions and other reasons. In response to these phenomena, first, by improving the accounting rules to be achieved; second is a sound legal system and supervision mechanism; 3 is more through incentives

3、and other management methods to enhance the overall quality of accounting personnel.      Keywords: accounting rules; the rules of distortion; violation of distortion; behavioral distortions           First, the reasons for distortion

4、of accounting information           Accounting information is the implementation of accounting rules, according to certain accounting rules were generated. High-quality accounting rules is to produce high-quality accounting information base, therefore, fi

5、rst of all accounting information distortion and the quality of the relevant accounting rules. Overall, the accounting rules have not been effectively implemented, is nothing less than the following three conditions: First, accounting rules, its own shortcomings; second is the implementation of acco

6、unting rules were deliberately violated accounting rules; third is the implementation of accounting rules were due to objectively the reasons for the implementation of accounting rules there bias. Accordingly, we will be distortion of accounting information is divided into: the rules of distortion,

7、irregularities and acts of sexual distortion distortion.      (A) the rules of accounting information of the objective existence of distortion      The rules of accounting information distortion is caused by its own accounting rules, accounting information dis

8、tortion, that is, even if the implementation of accounting rules to fully understand the contents and requirements of accounting rules and accounting rules in full accordance with the requirements of the production and disclosure of accounting information, accounting information is also a distortion

9、.      Production of accounting information, such as accounting records, accounting statements are all based on accounting standards and accounting assumptions based on these specifications the framework of accounting information is a subjective experience itself, the accumulatio

10、n results. Accounting policies, selectivity, flexibility of accounting principles and accounting statements of their own shortcomings, so that the value of accounting information to reflect accounting entity itself biased. The audit as a means of authentication and verification, nor from the audit o

11、f assumptions (such as audit sampling) limit. China's accounting regulations, in principle, is relatively stable, and when the objective changes in the environment after the objective of accounting does not reflect the synchronous tracking, which inevitably produce accounting information reflect

12、ed in the error and distortion.      (B) The distortion of accounting information of the objective existence of non-compliance      Violations of accounting information distortion is the accounting rules were deliberately violated accounting rules, the impleme

13、ntation of a result of accounting information distortion. This "intentional" refers to the enterprise management's behest, the use of accounting standards give enterprises the flexibility, there is bias or induced to provide false information.      The public co-inv

14、estment enterprise is a specific project, it is the shareholders, managers, employees, creditors, suppliers, purchases, and the community involvement of public stakeholders, a series of contractual link. Managers and other stakeholders in the enterprise's financial position, operating results an

15、d financial liquidity in the presence of information asymmetry. Once the accounting information generation, transmission coupled with the process of the human factor, the risk of distortion of accounting information with the human factor at the hip. Accounting information in public prior to the risk

16、 of distorted mainly from the three stakeholders by: management, accounting staff, audit staff.      1. Management      Management accounting information as the controller of the accounting information distortion bear the greatest responsibility. Accepted by m

17、anagement investors entrust responsible for the company's management, but the level of their remuneration depends entirely on the performance of the company's good or bad. Investors informed of operating results, the only reliable way to public financial information, which management account

18、ing information for the intervention, the control provides a profit motive. Asymmetric information, supervision and constraint softening, there may be such acts of self-serving motives into the present, when the values of corporate accounting practices are subject to the management of the direct int

19、erests of preferences, the accounting will be reflected in the management of direct manipulation and The intention tools.      2. Accounting Staff      Accounting officer is the collection of accounting information, the producer, the level of their professiona

20、l code of ethics a direct impact on the level of quality of accounting information. Accounting as a universal language of business, flexibility so great that only have sufficient professional knowledge, familiar with the current accounting standards, with a high degree of professional ability to jud

21、ge, can be a true and fair picture of the business operating results. However, the management of accounting personnel will have to face the pressure. Ability to meet their responsibility to adhere to principles, or the best interest for the sake of self-protection mandate but by willfully distorting

22、 the management of accounting information, which makes the accounting staff face a difficult dilemma. Although the Accounting Law of the accounting personnel made clear that the appointment and removal, but in fact the majority of accountants appointed by the management, and thus bound by the accoun

23、ting staff to play a role in accounting supervision, accounting for leading the intention of obedience, resulting in distortion of accounting information.      3. Auditors      Accounting information to pass the last part, but also the public that the most sec

24、ure one of the areas is the audit. Audit failures led to distortion of accounting information released to the public, also the auditors during the audit of the dilemma caused. Audit is to be investors, creditors, the Government's demand generated, the results of their audit of accounting informa

25、tion needs of those who service, but the audit by the Audit object returns are required to pay. Auditors in order to survive are often subject to business, protecting the fraud or the existence of acts of deliberate concealment; or out of prudence, confidentiality requirements, existing customers wi

26、ll not make any comments on statements of packaging. This makes the accounting information in the transmission in the process of filtering ineffective, but also so that the public audit officers have a crisis of confidence.      (C) The accounting information distortion of the ob

27、jective existence of behavioral      Behavioral accounting information distortion is in the implementation of accounting rules and accounting rules did not deliberately violate the motive case of improper accounting rules adopted for the implementation of behavior caused by the d

28、istortion of accounting information. The implementation of accounting rules in the implementation of accounting rules, whether they can produce a true accounting information, in addition to the subjective motives, but also depend on:      1. Really understood the accounting rules

29、 would have to be the expression of meaning;      2. Really grasped the essence of objective economic phenomena;      3. Whether we can appropriately accounting rules, the accounting treatment being used and reasonable accounting rules will be linked with econ

30、omic phenomena.      Three aspects mentioned above are based on people's cognitive ability-based. Behavioral accounting information distortion is the implementation of accounting rules by those who intentionally caused by acts of non-subjective, and its root cause lies in the

31、 limited nature of human cognition. Reposted elsewhere in the paper for free download http:/      Second, accounting information distortion control measures           (A) the rules of distortion of accounting information governance

32、60;    Distortion of the rules of accounting information to solve the key lies in establishing a mechanism to keep abreast of as much as possible the dynamic accounting rules for the application of accounting theory and accounting practice of the profession as many of the people's

33、 knowledge of accounting rules, the correct expression of . This is mainly through the improvement of the accounting rule-making process of specific improvement measures to achieve:      1. The accounting rule-making participants to not only be familiar with domestic and internat

34、ional accounting rules and social practices, but also the responsibility to understand the new environment, new issues;      2. To draft a specific accounting rules, accounting rule-making analytical reports, etc. to the public through various channels;      3

35、. On a regular basis that have been promulgated and implemented the specific accounting rules for some time to conduct investigation and study to determine the revision of accounting rules.      (B) violation of distortion of accounting information governance    &#

36、160; Violation of distortion of accounting information governance programs include:      1. A sound legal system, strengthen the non-compliance of accounting information distortion responsibility. A clear unit and the accounting personnel of the responsibility, and increasing peo

37、ple responsible for violations of the accounting information distortion civil strength. At the same time, we should enforce financial and economic law, increase penalties for counterfeiting acts and civil compensation for the executive strength, with the authority of the law to ensure that true and

38、accurate accounting information.      2. The effective implementation of accounting supervision. In accordance with decision-making bodies, implementing agencies and oversight bodies are separated and the principle of mutual restraint, through the establishment of modern enterpri

39、se system, improve the internal oversight mechanisms, radical distortion of accounting information of the state. Internal audit is indispensable to strengthen the interior of their flats supervision and restraint mechanisms to ensure the accuracy and reliability of accounting information to ensure t

40、he Internal Control was gradually improved.      3. To improve the quality of audits of Certified Public Accountants. To improve the level of CPA's professional ethics to improve the professional standards of Certified Public Accountants. The implementation of the audit rotat

41、ion, for example, every three years, the mandatory replacement of accounting firms, accountants and listed companies so as to avoid loss of independence is too close. Of the audit firm for services other than the proportion of revenue to make it clear that to prevent the firm because of auditing firms to provide advisory services to collect service charges and the loss of large amounts of independence.      (C) behavioral distortion of accounting information governance      Treatment due to negligence caused by the