Enterprise Accounting Information Distortion and Countermeasures.doc

Enterprise Accounting Information Distortion and CountermeasuresAbstract: This article from the current Chinese enterprises to start cause distortion of accounting information, analysis of Chinas enterprise accounting information distortion source. According to the article should be to strengthen accounting and legal system to improve law-abiding consciousness of accountants to resolve several aspects of accounting information distortion problem. Keywords: accounting information; accounting information distortion; internal accounting control; Measures Accounting as a management activity, its main purpose is to provide the accounting of the main external accounting information. Ie financial accounting reports provide users with the unit of financial position, operating results and cash flows and other relevant accounting information. High-quality accounting information must meet the real, relevant, timely, comparable, clear and other requirements, where authenticity is the most fundamental requirement. However, in recent years, Chinas accounting information distortion phenomenon is very serious that affect business investment, tax and accounting information related to various aspects of the user. To ensure the authenticity of accounting information has become a serious problem. To this end, this article intends to distortion of accounting information from the causes and countermeasures for more in-depth discussions with a view to inspire all of us and I hope that the experts criticized correction. First, the reasons for the formation of accounting information distortion (A) behavior among accounting staff under the impact of traditional culture People is higher than all other traditional concepts of Chinese people decided to think like the man himself from this angle, first to understand and know themselves, and then do anything else, this is a introspective way of thinking. This characteristic of the Chinese people relations between philosophy and way of thinking to create a complex Chinese-style relationships. This is based on interpersonal relations based on mutual self-interest basis. Chinas accounting inspection personnel, including certified public accountants, auditors and other audit of the main causes of interpersonal relationships, to examine a companys annual report, the first consideration is not how to do this work, but to a careful examination of what will happen, What good is slack in the past. For checked units, their show of false accounting information, if confirmed, not only the interests of small groups can be protected, and digital out officials, unit leaders will be rewarded and reuse. Therefore, in the course of inspections of accounting information, the unit being inspected often unscrupulously in order to muddle through it. For auditors, the according to principles, and certainly against the have-way street, to and not to reciprocate the rules of the game, their interpersonal relationships is likely to become exceptionally bad. This has led some accountants to conduct the financial review of desperation. Over time, the accounting information distortion problem can not be fundamentally solved. (B) the enterprise property right system led to information asymmetry In the modern enterprise system, separation of enterprise ownership and management rights, separation of ownership and the formation of a contractual relationship in the economy. As the owners and operators of conflicting interests, creating an information asymmetry problem, the party engaged in business activities for the maximum increase in self-interest, will exist is not conducive to the other actions; more likely to take advantage of the other party a lack of information , leaving the other negative, so that the process of market transactions, parties desire to deviate from the lack of information. The business owners are most concerned about the security of capital and profitability, in the hope to obtain the true from the enterprise accounting information, and accordingly an objective assessment of business operating results, an accurate assessment of its financial position, in order to facilitate future investment decisions; In addition, we hope able to control aspects of the accounting policy to the maintenance of the owner of tilt. One of the important role of accounting information to reflect the operators operating results, while the operators effort is difficult to predict, which makes the operators are likely to the extent permitted by accounting standards around the generation of accounting information, they are more stress is placed on short-term economic benefits to bring their own interests and not care about their long-term development, and adopt the owner contrary to the expectations of the accounting policy, resulting in distortion of accounting information. (C) accounting standards, systems, and diversity in the choice of accounting policies As a result of specific circumstances of different companies, accounting standards, accounting systems and other corporate accounting regulations in the work of the specific accounting principles and norms can not be perfect, logical close. In this way, the handling of the same transactions will have a variety of alternative accounting treatment methods, such as business-to-inventory using different valuation methods, its financial position and operating results would have different effects, the diversity of accounting policies, accounting estimation method to bring financial position, financial results of the calculation of the difference, leading to the accounting staff from the accounting of the main considerations, the choice of personal interests above everything else, even at the cost forgery, and the preparation of false financial and accounting reports, providing false accounting information. In addition, the promulgation of accounting standards often lag behind the development of accounting practices and the economic behavior of the innovation, in practice, when companies new situations and new problems, new business areas, new industries, it is difficult to find effective long-term accounting laws and regulations as the basis of accounting operations, so that the accounting treatment of business no laws, unsystematic. (D) internal control mechanisms are not sound enough Internal control mechanisms are the assets of enterprises and institutions to safeguard integrity and to ensure the authenticity of accounting information, as well as a comprehensive plan of economic activities, assessment and evaluation methods and procedures developed by the general term. Many of the senior management of enterprises and lack of knowledge in this area, resulting in the development of the internal control system is too lax, simple, and all kinds of wrong accounts are not adequately detect and suppress, they reflect the natural can not be true and reliable accounting information. Due to ignorance of the leadership of some enterprises accounting, in pursuit of the interests of individuals or small groups, at all costs, fraud, or to evade the states relevant laws and regulations and discipline, supervision, and accounting personnel has affected people responsible for the appointment and management, in work hard to uphold the principles and implementation of accounting oversight functions. (E) The accounting officer is not high professional quality The accounting officer is the main body of accounting activities, accounting information is in the accounting personnel the accounting recognition and measurement elements generated and, therefore, inevitable that the objective of economic activity to estimate a number of uncertainties, judgments and reasoning, different quality of accounting personnel estimates, judgments and reasoning often leads to different results, a number of poor quality of the accounting officers even if they follow the accounting standards, but because of their level of awareness of the limitations of habit is limited, inevitably measured accounting data out of touch with reality, so that the accounting distortion of information. In practice, accounting personnel, non-specialized widespread, accounting for only remain in the account, afterwards, on the reimbursement of the shallow, it is difficult to achieve reasonable and legal. The low quality of accounting personnel, the main features: First, the lack of professional ethics. Some accounting staff awareness of professional ethics is weak, selfish desires ever expanding, driven by material interests, the desperate, by all means fake, hidden, corrupted accounting data, used his position to abuse, the state and collective property appropriation, Zhong Bao pockets, as well as toward crime; Second, the accounting officer responsible is not strong, professional knowledge-poor, lack of study business and professionalism, the sterile, inert, in particular, little is known about the new accounting system, work excessively bureaucratic, accounting, basic management is weak, family property is unclear, property is not real, financial management, chaos, unable to provide a true accounting information, coupled with the growing awareness of the law weak, it is inevitable to make things illegal discipline; third part of the accounting staff, driven by personal interests, abandoned their duties, take the initiative to lead make plans in violation of financial law, making false accounts, set up extra accounts and small treasuries, providing false accounting information, false, exaggerated, cosmetic results, to hide income, evade taxes, for personal gain. Second, radical measures of accounting information distortion (A) Strengthening the accounting rule of law, improve the law-abiding consciousness of accountants First of all, strengthen the accounting rule of law, to the rule of law not the rule of man. Civic awareness of the legal system. Conscientiously implement the accounting and the related accounting regulations and rules, to check out fraud, the penalties for dealing with responsible people focus on the individual body, substantial increase in the cost of accounting fraud, let counterfeiters pay a heavy cost, so that it did not dare to defy the law, and secondly, from the source to curb counterfeiting. Meanwhile, in accounting practice, accounting laws and regulations must be strengthened legislation work and constantly improve in order to accounting as the core of the accounting regulation system, so that all accounting laws to go by. And social and economic development should be based on the actual situation in a timely manner to the relevant accounting laws and regulations to amend and improve in order to enhance their scientific and regulatory rigor. In addition, strengthening and improving the process of accounting regulation system, we should conscientiously do a good job with accounting of the accounting laws and regulations centered on his work in promoting leadership and accounting staff at all levels to enhance the concept of the rule of law, and gradually cultivate a good accordance with the law atmosphere. (B) strengthen accountability, improve methods of accounting information provided The establishment of a sound and effective accountability mechanisms, and fundamentally enhance the authenticity of accounting information. The sound and effective mechanism should be entrusted with a strong sense of responsibility, a sound external accountability mechanisms, effective internal control system consists of three parts. Fiduciary responsibility is entrusted with the management of public resources, those resources by the people entrusted with responsibilities. Fiduciary duty is due to the establishment of fiduciary relationships that occur, the core of fiduciary duty is: When the trust relationships established, as trustee, it is necessary with the greatest goodwill, the most cost-effective way, the most strictly in accordance with the will of the parties to the completion of the tasks entrusted to the client. Despite the accounting request, the unit responsible person of the unit of accounting information are true and complete responsibility. However, in accounting practices, how to call for a true accounting information units and complete responsibility for accounting information on which a true and complete responsibility for a problem, how to pursue the administrative responsibility, criminal responsibility, the relevant accounting standards and regulations are too general and that an increase in discretionary right, easy to suspect parties, public administration officials, the judiciary staff to bring defense loopholes and reduce the cost of offense. (C) the establishment of a national unified accounting system, and strengthen the comparability and consistency of accounting information The comparability of accounting information businesses are the main reason for the development of accounting standards and the ultimate goal. Because different companies use different accounting methods will lead to more difficult for inter-enterprise finance, and the comparability of accounting information by the State uniform accounting standards and accounting system guarantee. Therefore, the establishment of a national unified accounting standards and a unified accounting system of governance has become one of the measures of accounting information distortion. (D) Establishing a sound internal control system, and strengthen internal management First is to continuously strengthen their internal accounting management system, standardize and improve the internal accounting and management activities of the various systems, measures and methods to effectively safeguard the integrity of the accounting system, management system, coordination and effectiveness, and gradually establish basic units of accounting quality of information has overall responsibility for the benign mechanism; two is clear unit leaders, chief accountant, accounting agencies, the accounting personnel of the specific roles and responsibilities, determine the form of internal accounting accounting, and strengthen the oversight of corporate accounting staff to ensure that a true accounting information reliable; 3 is to establish and perfect the interior of their flats containment system, audit system, internal audit system, to achieve self-discipline, self-control, timely discover and correct mistakes, to prevent financial fraud, effectively plug the loopholes; Fourth, give full play to the role of accounting controls, Chief Financial Officer appointed by the owner of the leading accounting bodies and accounting personnel work, and change the signature of a pen 2 pen signature, so that the financial director and co-ordination between the operator and mutual supervision, to maximize the maintenance of owners equity, so that accounting information true and reliable.