What are the preventive measures for whitewashing financial statements?

1. Endangering the market economic order. The behavior of enterprise accounting information distortion will cover up the real business situation of the enterprise, increase the uncertain factors in the operation of the national economy, deceive investors and mislead the country's judgment on the current economy.

This is likely to reduce the gross national income, endanger the order of market economy and hinder the sustained economic development, which is the bottleneck of China's economic growth and has serious harm to China's market economy.

2. Damage the long-term development of enterprises. When making decisions, senior managers of enterprises take financial statements as the main basis, and the information that can not correctly reflect the situation of enterprises gives wrong guidance to decision makers, which leads to decision failure and brings greater losses to enterprises.

At the same time, due to the early recognition of income or deferred recognition of expenses, on the one hand, it leaves potential losses for the later period, which needs to be digested in the later period, greatly reducing the potential for profit growth in the later period; On the other hand, the goal of upper-level profit management is last year.

As a base, performance is generally higher than that of the previous year when assigning tasks, and it is more and more difficult to realize profits.

3. Endangering the development and social reputation of the CPA industry. Current certified public accountant

The competition within the department is fierce, and a few accounting firms compete to lower prices or reach some kind of agreement with enterprises in order to win customers. This vicious competition leads the firm to rely on customers and be in a passive position in the professional process. Where are the accountants?

This kind of false accounting behavior has caused an unprecedented crisis of trust in the entire accounting industry. At this stage, the integrity of the accounting industry has aroused widespread concern from all walks of life. This distrust attitude is very unfavorable to the long-term healthy development of the accounting industry.

4. Hurt investors. Investors' investment is based on the financial statements provided by enterprises, and their whitewashing behavior will mislead investors, at the same time, it will make investors lose confidence in the investment environment of enterprises, and the losses caused are difficult to measure with money.