In recent years,enterprise management authorities for a variety of purposes,using various means to whitewash financial statements and cover up the true financial situation of enterprises,results of operations and cash flow,not only caused great losses to the state,and information to users according to statements to make the right choice,to the credit market caused great confusion.

This presentation will analyse the motivation of state owned enterprises whitewashing accounting statement and how to discern and put it in order.

The material constitution, the shape and the grain size of jewelry investment are studied in detail.

The falsified annual reports by some listed companies are generally caused by the institutional defects in stock issuing and marketing system,management system and inner corporate governance.