What are the references to the causes of accounting integrity deficit and governance countermeasures

In terms of auditing, it is fraud, especially top-down fraud where management overrides internal controls.

The specific measures to deal with the lack of accounting integrity are as follows:

1. Establish accounting and credit intermediary institutions.

Improve the system for the supply of accounting information, establish a civil compensation mechanism, and increase the cost of untrustworthy accounting. It is necessary to intensify law enforcement and further formulate and improve relevant accounting laws and regulations and systems, so as to make them scientific and reasonable, easy to implement, and effective. In order to carry out effective control, there must be a clear division of responsibilities, so that all departments, positions and employees of the enterprise are responsible for their own responsibilities and mutual constraints.

The segregation of duties is a fundamental principle of internal control, which mainly addresses the problem of incompatible segregation of duties.

2. Strengthen the management of professional ethics of certified public accountants.

Establish integrity files. In order to maintain healthy social and economic development, it is necessary to vigorously advocate integrity in the whole society, especially in accounting. Adapt to the ethical norms, publicize accounting integrity through various publicity media, and generally form an ideological and moral environment of "integrity-based, ethics-oriented, adhere to standards, and do not make false accounts" in the accounting industry and accounting personnel, and abide by the principles of independence, objectivity and fairness.

3. Improve the corporate governance structure.

Improve the internal accounting control system. In order to fundamentally establish a set of accounting creditworthiness system that is compatible with the market economy, it is necessary to comprehensively use political, economic, legal, administrative, cultural and other means, constantly improve accounting laws and regulations, strictly enforce financial and economic discipline, and combine the prevention of old and wild people with governance, and take a two-pronged approach to treat both the symptoms and the root causes, so as to maintain the healthy and effective development of the entire market economy.

The main reasons for the existence of accounting integrity problems include the following aspects:

1.Market economy system.

The basic principle of the market economic system is the survival of the fittest, which ultimately exacerbates the disparity between the rich and the poor, and the majority of the people get into a predicament while a small number of people obtain relatively large profits, and they are not eliminated in order to survive or improve their competitive position, and only by adopting dishonest methods can they get out of the predicament.

2.Driven by economic interests.

One of the basic goals of the development of the market economy is to pursue the maximization of interests. The management of some enterprises, under the business goal of maximizing corporate profits, has lost their rationality and embarked on the road of profit-seeking, and will do whatever it takes to try to grab ill-gotten gains, make false accounts, make false statements, collude to cheat, falsely report profits, and create illusory high-speed growth, so as to deceive regulators, defraud society, and seriously damage the interests of the state and the public.

3.The system is not perfect.

Under the conditions of market economy, economic activities are mainly carried out through mutual transactions between various market entities, and the amount of information is unprecedentedly increased and rapidly changing. In addition, China's current market mechanism has not yet been perfected, and there is no effective mechanism to ensure the openness, fairness and effective transmission of information, which makes the information asymmetry of market transaction subjects and investors, which provides the possibility of dishonesty and fraud.

4.The professional quality of accounting personnel is uneven, and the follow-up education has not kept up.

As an important part of the accounting personnel to improve their professional level——— the follow-up education of accounting personnel has not kept up with the requirements of knowledge update, and the follow-up education is often a mere formality. The defects of accounting personnel's knowledge will inevitably lead to inadequate management, and in actual operation, the accounting principles and methods of accounting are not fully understood and understood, which leads to the distortion of accounting information.

1. Information asymmetry is the premise that leads to the lack of accounting integrity.

2. The civil compensation mechanism is not perfect, and the low cost of non-compliance is the driving force for accounting dishonesty.

3. The lack of independence and ineffective supervision of CPA auditing is the direct cause of the accounting integrity crisis.

4. The defects of the company's system are the fundamental cause of China's accounting dishonesty.