Translation sample 1--Study: CEO, Outsiders Lead Financial Statement Fraud

（Translated by freelance Chinese translator li – English to Chinese or Chinese to English translation services）

English-Chinese

Source:
Study: CEO, Outsiders Lead Financial Statement Fraud

March 8, 2007 (SmartPros) -- The overrides of internal controls leading to financial statement fraud is typically caused by a fraud network led by the CEO and aided by outsiders, according to a new study of financial statement fraud.

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The study by the nonprofit Institute for Fraud Prevention (IFP), a consortium of universities dedicated to researching the causes of fraud and how to reduce it, found that these fraud networks cause extremely large losses that are far greater when the outside audit firm is alleged to have aided the fraud.

Robert Tillman and Michael Indergaard of St. John’s University in New York, working under an IFP grant, undertook a review of 834 firms that filed financial restatements between 1997 and 2002. By examining these companies, along with any class action lawsuits and SEC proceedings taken against them, they were able to extrapolate several trends in financial statement fraud.

Several of the study's conclusions corroborate those from other research, including that investor losses from financial statement fraud are of devastating proportions and that the most expensive frauds are almost invariably led by controlling persons, typically the CEO. (Criminologists refer to them as "control frauds.")

The CEO normally includes the CFO in the fraud network. Restatements are more common in so-called New Economy industries, such as information technology, energy trading, and telecommunications. However, the data also revealed some previously under-explored facets of financial statement fraud.

Paramount to the findings was evidence that these schemes are rarely solitary endeavors. The average number of parties connected with the alleged fraud cases studied was 7.2. Additionally, in over half of the schemes examined, a company other than the restating organization -- usually an investment bank, auditing firm, or colluding business partner -- was implicated as a participant.

One of the striking findings was that average shareholder losses were more than twice as large in cases in which it was alleged that the outside audit firm aided the control fraud.

The authors of the study recommended continued oversight of the financial reporting process and the maintenance of policies that require accountability on the part of senior managers, board members and auditors. The researchers opposes measures designed to limit the liability of auditing firms.

The full study is available for free download at: http://www.theifp.org/

© 2007 SmartPros Ltd. All rights reserved.

Translation(by wordfast after clean-up):

研究：首席执行官和外部人员串通导致财务报表舞弊

2007年3月8日（SmartPros）




--根据一项新的财务报表舞弊研究，由首席执行官领导的舞弊团伙，在外部人员的帮助下，无视内部控制制度，导致财务报表舞弊。

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防范舞弊组织（IFP）--一个致力于研究舞弊成因和减少舞弊的非营利性大学联盟,发现当有外部审计组织参与舞弊时，这些舞弊团伙将造成更巨大的损失.

来自于纽约St. John’大学的Robert Tillman 和 Michael Indergaard，受IFP的委托，调查1997—2002年834家进行财务重报的公司。纵观这些公司,以及某些共同诉讼案和证交会的案件处理, 他们可以推断出财务报表舞弊的几个趋势.

此项研究的许多结论佐证了其它研究的一些观点,包括财务报表舞弊导致的投资者亏损占有巨大的比例,造成最重大损失的舞弊总是由拥有控制权的人造成的,通常是总裁.（犯罪学家把它们称作“控制舞弊”。）

总裁通常把财务总监拉进舞弊团伙。财务重报在所谓新经济产业中更为常见,如信息技术、能源贸易、和电信.然而，数据也揭示了以前没有被充分研究的财务报表舞弊的许多方面。

最重要的发现是这些舞弊计划很少出自一人之手。被调查的舞弊案件中，舞弊团伙平均人数是7.2人。另外，在半数以上被调查的舞弊计划中，某些公司（不是哪些进行财务重报的组织）——通常是投资银行，审计事务所，或者同谋的生意伙伴——牵连其中参与舞弊。

一项惊人的发现是当外部审计事务所参与“控制舞弊”时，平均股东损失逾两倍。

这项研究的作者建议，持续监督财务报告过程，修订高级经理、董事会成员和审计人员责任制.研究人员反对旨在限制审计机构责任的措施。

整篇文章免费下载： http://www.theifp.org/

© 2007 SmartPros Ltd.版权所有。