However, it may take years for the above intermediate services to develop, and the expertise, reputation, brand-name, service quality also take tens of years to build. Are the audited statements trustworthy? It really depends and relates to the expertise and internal control of the firms. The development of intermediate financial service providers is affected by market liberalization as well.
If all of these issues cannot be dealt with effectively, probability of enterprises’ providing false information and engaging in financial frauds will continue to be high. I would very much like to hear the comments on what I have said from experts and researchers present today. Your opinions will be instrumental to our work. III.