Dynamic Game Model and Countermeasure Analysis Considering Tripartite Financial Audit
Journal of Global Economy Business and Finance · 2022
Financial fraud has many adverse effects on capital market, government regulation and investors' decisions.In order to reduce the occurrence of financial fraud, based on the preference of financial and audit departments, the dynamic game model of enterprise, audit and CSRC is established.By considering the social reputation, economic benefit, audit economic benefit and other factors, the inverse induction method is used to solve the equilibrium solution of the three-party game.Then, in view of many factors involved in financial fraud and dynamic game equilibrium solution, the paper provides corresponding countermeasures and suggestions for standardizing financial audit procedures and building a well-ordered capital market.