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in sensible numbers, but on conformity with regulations (Boardman and Laurin 2000). It would be very safe to assert that the soul of the standard is taken out and in its place mere formalities are placed. Besides this, the independent auditors' standards are put to one side, and their only duty is to comply with accounting standards.

It can be very safe to say that random accounting standards do not stop fraudulent accounting practices, but they do stop the creation of improved practices. In spite of the complicated regulatory system, investors cannot be deceived for long. At one time or another, frauds are found out and the share prices of firms that have utilized window dressing to portray a better financial position are caught out and penalized appropriately. In spite o this, when regulations are removed, corporation expenses are brought down, better tools for measuring financial performance can result, and there is a reason to present additional financial information to investors and in this way help to make rating quality better.

总结和建议——CONCLUSIONS AND RECOMMENDATIONS

Many answers have been hunted for the disasters caused by financial statement frauds. Some believe the solution is to create more regulations to stop financial wrongdoing by punishing the parties concerned. The issue, however, is that repeatedly these regulations result in consequences that counteract to their original motives and stop the development of fresh accounting standards that would offer a better portrayal of a firm's financial performance. Others believe that competition between the various accounting standards should be allowed so that firms can opt or the set of accounting standards they are going to utilize to create their financial statements and operating results. Nevertheless, financial and accounting frauds have occurred even when varying sets of accounting standards have been utilized (Basset and Storrie 2003). Other proposals include creating codes of ethics aimed at increasing the ethical responsibilities and accountabilities of directors, auditors and other parties concerned (Bayless 2009).

Nevertheless, even though more laws have been passed, for instance the Sarbanes Oxley Act of 2002, and the significance of improving ethical values and corporate responsibility has been harped on, this has not stopped great accounting frauds from resulting in instability in capital markets, and, for this reason they have hampered the increase of wealth in our society. This issue could be alleviated if scrutiny tools, such as boards of directors and independent auditors, are intensified. Boards of directors need to carry out an independent, active and key role in the administration of management activities, and to behave as the security guards of efficient corporate governance. Boards of directors should also devise a compensation system for company directors that will promote long-term value development for the firm itself, in the sense of a continuous return on invested funds, over and above capital expenditure.

Concerning independent auditors, their stakes must be allied with those of financial report users so that they distribute correct auditing judgments. One method in which these interests could be aligned is by forming a competitive financial report market. In this market, only trustworthy financial statements w本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。