Why did the State not implement control measures on the whitewashing of the financial statements of

The state is not a machine. Nations are made up of people.

The state has to manage people's housing, food, and transportation, and everything.

Every time the country is in charge of something, there must be a group of people, such as the Ministry of Housing and Urban-Rural Development, such as the Ministry of Quality Supervision, such as the Ministry of Transportation and Information Technology. It's all people doing things, not the "state" doing things.

Is it okay for the state to manage financial statements? Of course.

The premise is to set up a financial statement verification department, form a large department of tens of thousands of people, and then legislate to levy taxes from enterprises for verification and use them as expenditure costs. Then, set up an audit department to conduct inspections, and go to the company for a walk. Finally, the company pays an annual tribute to the Financial Statement Verification Department.

In this way, it can be controlled more or less.

So, the bosses will take your bonus, of course, if it's not enough, take a copy of your salary, and send it to the report verification department first.

So, you're asking: What's the use of the damn Financial Statement Verification Department?! Why didn't the state cancel it?

Let me reply to you one more sentence: the state is not a human being.

The truth, you will understand.

The whitewashing of financial statements refers to the behavior of an enterprise deliberately creating false financial information in its financial statements in order to achieve a certain purpose, so as to achieve the purpose of deceiving investors or related parties. The whitewashing behavior of financial statements is mainly manifested in the following points:1

Inflated revenue: Inflating a company's revenue and making it look more competitive by expanding sales and including ordinary income into other income. 2.

Inflated profits: The use of asset impairment, liability provision and other means to inflate the profits of the enterprise, so that the enterprise looks more stable and profitable. 3.

Inflated assets: The total assets of the enterprise are inflated by illegally counting invalid or non-existent assets, increasing the credibility and value of the enterprise. 4.

False debt: Reducing the total debt of the enterprise and reducing the debt risk of the enterprise by reducing the debt in violation of regulations or including the debt in other accounts. To prevent the whitewashing of financial statements, enterprises need to take the following measures:

1.Strengthen internal control to ensure the authenticity and reliability of the company's financial statements. 2.

Strengthen the audit of financial statements to ensure that the financial statements comply with accounting standards and relevant laws and regulations. 3.Improve corporate governance to ensure compliance, efficiency and transparency in corporate decision-making.

4.Strengthen external supervision, including early planning institutions and regulatory departments, and increase the supervision and management of enterprises' financial statements. 5.

Enhance investor education, improve investors' awareness and judgment of financial statements, and enhance investors' trust and recognition of enterprises.

There are too many reasons, such as: the need for tax evasion, showing shareholders that shareholders can continue to invest, showing banks that they can get financial support from banks, and so on.

The whitewashing of financial statements by enterprises is based on the needs and purposes of the enterprise.

To protect corporate confidentiality, financial data is not shared. There is no fake data sharing, and there are many fewer jobs.

1. The connotation of whitewashing financial statements.

The whitewashing of financial statements should include two levels of content: one is the behavior of accountants (voluntary or involuntary) to whitewash financial statements due to the flexibility, ambiguity and lag of accounting regulations and accounting standards; Second, there are provisions in the relevant accounting laws and standards, but accountants (voluntarily or involuntarily) do not handle economic business in accordance with the laws and regulations to whitewash the financial statements. Obviously, the first level of financial statement whitewashing does not need to bear legal responsibility, and this kind of financial statement whitewashing behavior can only be solved by improving accounting laws and regulations, and for the second level of financial statement whitewashing, the relevant persons should bear the corresponding legal responsibility for their illegal acts, otherwise it will lead to non-compliance with the law, which will inevitably make the problem of distortion of accounting information in China more serious.

Whitewashing of financial statements refers to the act of preparing financial statements by the management authorities of an enterprise by means of fabrication, alteration, forgery, etc., to conceal the true financial status, operating results and cash flow of the enterprise.

2. Specific countermeasures to deal with the whitewashing of financial statements.

We should further standardize the construction of financial and economic laws and regulations. The formulation and planning of accounting standards should be advanced, have a more scientific analysis and analysis of the changes in the accounting environment of future economic behavior, and try to avoid the phenomenon of "no law" in accounting treatment. It is also possible to refer to the development trend of international accounting practices to minimize the accounting procedures and accounting methods that can be selected in the accounting standards, so as to narrow the scope of accounting choices and reduce the problem of whitewashing of financial statements caused by the multiple selectivity of accounting procedures and methods.

Gradually standardize the accounting mechanism. The establishment of a standardized accounting mechanism will help to regularize accounting and curb the whitewashing of financial statements. The accounting mechanism not only includes the formulation of accounting standards and accounting systems, but also includes the implementation of accounting standards and accounting systems.

At present, efforts should be made to implement and establish an accounting supervision system with the internal supervision system as the main body and external supervision as the supplement, and the external supervision should take social supervision as the main body and supervision as the supplement. At the same time, a strict and perfect internal control system should be established in accordance with the requirements of accounting standardization to ensure the authenticity and reliability of financial statements.

Listed companies: 1. Select accounting policies to whitewash the statements.

1) The motive of whitewashing performance and evading supervision: the motive of the selection and change of accounting policies of listed companies is mainly to manipulate profits to achieve the predetermined goals, so as to meet the minimum requirements for allotment or listing control, the return on net assets is lower than and closer to 10, and the earnings per share are lower than and closer to zero, the greater the possibility of increasing current profits through accounting policy selection. Therefore, responding to market control rules and maximizing the interests of "internal controllers" is the most important motivation for the accounting policy choice of listed companies in China.

2) Implicit dividend motives: In the case of unsatisfactory overall operating conditions of listed companies and imperfect supervision mechanisms, the performance of the hard work of the operators is far less "immediate" than the manipulation of profits through the selection of accounting policies, and in order to achieve the goals, the operators may choose to increase or inflate the accounting policies of profits. (3) The need for external financing and commercial credit:

In order to obtain credit from financial institutions, enterprises with poor operating performance and unsound financial conditions will inevitably have to dress up their accounting statements. (4) Whitewashing of financial statements in order to shirk responsibility: In the event of a natural disaster or when senior management personnel are involved in economic cases, enterprises are also likely to whitewash their accounting statements.

5) Major shareholders draw blood and hollow out the assets of listed companies: as follows: (1) major shareholders occupy the blood and cash flow of listed companies through capital lending, related party appropriation, etc., forming a large number of receivables, and then write off a lump sum by making provision for bad debts; (2) the major shareholder replaces the high-quality assets of the listed company with non-performing assets through asset restructuring and other means, and then the listed company covers up the transaction by making a large amount of provision for impairment of fixed assets; (3) Funds are transferred through guarantees, asset mortgages, and capital market operations, which are reflected in the statement as asset impairment provisions such as short-term investment price decline provisions.

2. Abuse of accounting policies and accounting estimates.

1) Seemingly reasonable but hidden changes in accounting policies: for example, in an inflationary economic environment, the valuation of listed companies' inventories may be changed from the original first-in-first-out method to the last-in-first-out method to avoid the risk of rising costs caused by inflation; When the investment enterprise has control, joint control or significant influence on the investee, the long-term equity investment is not accounted for by the equity method.

2) Non-fair provision and adjustment of profits: For example, the provision for asset impairment such as bad debt provision is mainly based on subjective judgment, and this subjective judgment not only has the problem of whether it is wrong, but also whether it is fair.

The eight provisions in the detailed statement of asset impairment provisions have become "the best means of internal adjustment of listed companies." "(3) Abuse of estimation and abandonment of creditor's rights: The waiver of creditor's rights may mainly occur in the abnormal alternation of the old and the new by the management of the listed company (the alternation of management caused by abnormal production and business activities) or the period when the management is controlled by major shareholders.

4) The provision is not mentioned, the provision is insufficient, and the profits are inflated.