| Summary: | 碩士 === 國立中正大學 === 會計資訊與法律數位學習碩士在職專班 === 104 === In response to the growing global trend of how modern businesses operate, a lot of commercial transactions can lead to unorthodox situations, and as such situations become common practices between the operating businesses, it would be foreseeable to have conflict of interests between the commercial interests of the companies and the public interests of the investors to arise from these types of transactions. How one determines whether such conflict of interests exists, and if these unorthodox practices are lawful and allow protection for the public interest, is one urgent task. The hope is that by looking at the unusual circumstances indicated in financial statements, comparing and analyzing these irregularities with findings supported by facts and practicing reasonable control, it becomes obvious for suspicious activities to be seen in the course of routine business, and provides the basis for investors to look for clues, like any deliberately concealed causes in the form of operating exceptions, or signs that a company is not practicing sound judgments. Investors would then be able to make fair judgments for allocating their investments by scrutinizing a company’s financial statement, and looking for signs of suspicious activities that are precursors to unlawful events before they take place. And as such, the investors would also be able to avoid imminent catastrophic events, and obtain the much needed protection for the interests of investors.
As financial statements are results from conducting business, how to decipher the reality of fabricated financial statement is an important task. Or to put it simplyfor the sake of argument, by using items such as the accountant’s notes and comments on the financial statements, more specific representations of the explicates in the financial statement, financial reports, or even increasing accountant liability, the limitations on the basis of principles and the application of law, the limitations applicable to the overall fairness, as well as the constituent elements applicable to the supported business decisions that are out of bound in the realm of sound business practices, and, to explore the Civil Liability Company Law and the Securities Exchange Act section 369-4 of the Article 171 paragraph criminally 1, paragraph 2. Therefore in reviewing the relevant judicial practice of the Supreme Court of Review case Discussion release, and in connection with a company’s irregularities in the routine business practices on the financial statements alongside its accounting practices; these cases help to explore the conventional judgments rendered in the case of unusual financial situations in the financial report, conventional signs of irregularities from sales on financial statements , and with the case collation and analysis table, so that we may make proper recommendations for amending the law.
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