【文章內容簡介】 ting benefit, so in the case of insider control, use bonus as incentive means usually leads the publish distorted accounting information to control benefit. On the other hand, the traditional viewpoint of Chinese is “The government official is most important”. Some managers’ goal is to bee an official or politician, so for those people accounting bees a chess piece. It is not strange for a pany to appear to “turn hostile suddenly”. Though analysis of those financial malpractice cases, we may discover that the improper incentive mechanism impels managers to control the profit, thereby cause the distorted accounting information. Table 1. Corporation administration person year revenue together revenue shape Item Under10000 1000020210 2021050000 Over50000 Monthly pay Yearly pay Mortgaged Dividend Others 4. The unqualified supervisory mechanism is the external cause that creates the distorted accounting information The supervisory mechanism of public pany consists of exterior supervision and interior supervision. Exterior supervision means the pany restricts the managers’ action through outside marketplace. These marketplaces chiefly are the product marketplace, the manager marketplace, and the capital marketplace. Interior supervision means that panies restrict the managers’ action through specific system design. Exterior supervision will take a long time to be established, and 6 tradition, culture, political of environment will have a great affect on it. Hence it is a long period of time for exterior supervision to resolve the distorted accounting information, and it cannot acplish it in one move. Under this situation, resolving the problem as quickly as possible will depend on interior supervision. The way of the . is worth studying. After experiencing a series of accountancy scandal cases, the . Government passed SarbanesOxley Action of 2021 to resolve accounting information quality. The law had several aspects, while are as follow: (1) The act also has stiffened penalties for corporate and criminal fraud by pany insiders. The law makes it a crime to destroy, alter or falsify records in a federal investigation or if a pany declares bankruptcy. The penalty for those found guilty includes fines, or up to 20 years imprisonment, or both. (2) No personal loans or extensions of credit to pany executives either directly or though a subsidiary, except for certain extension of credit under an open –ended credit plan or charge card, home improvement and manufactured home loans, or extensions of credit plan by a broker or dealer to its employee to buy, trade or carry securities. (3) Any CEO or CFO who “recklessly” violates his or her certification of the pany financial statement. If “willfully” violates, fine of up to $1,000,000 and /or up to 10 years imprisonment. Fine of up to $5 million and /up to 20 years imprisonment. (4) The act vests the audit mittee of a publicly traded pany with responsibility for the appointment, pensation and oversight of any registered public accounting information to perform audit services. The supervisory mechanism of the public pany in China consists of stockholder board, corporate board and supervisor board. But those boards cannot supervise the manager efficiently. When the outstanding achievement is not very good, certainly the manager will utilize different measures and announce the distorted accounting information to attain individual and political aims. 5. Pattern of the relationship between the corporate governance and the distorted accounting information and some proposals 7 Accounting information is orient to advance efficiency and improve performance of pany though using the mechanism to control the accountant datum. If this corporate mechanism brings into play efficiently, the accounting information must bine well with capital market. Because the price of