Profit Manipulating Means and Strategy of Listed Companies

Profit manipulation is a comparatively prominent problem existed in Chinese listed companies.The concrete accounting standards haven't involve in the accounting details of listed companies so many listed companies use the choice of accounting policy and accounting estimation to manipulate profits,use connected transaction to adjust profits,change and manipulate profit by depreciation,non-regular profit and loss,and decreasing cost through fictitious income.To prevent listed companies from manipulating profit,we should improve accounting standards,create better internal and external environment,improve external supervision of listed companies,build perfect compulsory information disclosure,strengthen auditing supervision of CPA,and effectively control profit manipulation of listed companies.