The Evaluation of Strategies Based on the Analysis of Three Causes of Accounting Frauds

Abstract

Accounting fraud has a long history and a wide range of harm, which has attracted wide attention in the world. Although numerous nations have put in place pertinent laws and policies to reduce the likelihood of accounting fraud, the reality shows that the desired effect has not been reached, and fraud instances are still prevalent. Moreover, the way of accounting fraud also constantly changes. This paper analyses the consequences and causes of accounting fraud through a review of the literature, focusing on the audit departments lack of adequate external oversight and the companys irrational corporate governance, which involves having one person fill two key roles. The accountants lack of business ethics is also discussed. In order to provide a reference for the prevention of accounting fraud in the future, the author evaluates some detection methods for accounting fraud and discovers that while adequate audit supervision and sound corporate governance are important, it appears that improving the accountants own business ethics matter more in the future.