Government Investment Project Audit Research Based On Synergy And Governance Theory

The Chinese government has implemented a proactively fiscal policy andloose monetary policy for years. The scale of government investment projects hasincreased year by year, in which a number of investment failure problems comeinto being. So audit and supervision of government investment projects should bestrengthened. However, the nature of quasi-public goods audit leads to "free-rider"phenomenon. The government or the owners interests oriented mode of auditbefore can not meet the governance needs of the all stakeholders. Adverseselection and moral hazard existing in a government investment project lead tolow efficiency. The complex system audit has maken it difficult to achieve theaudit goal. A government investment project audit based on synergy andgovernance theory provides effective approach for solving those problems. In thispaper, by combiniation theory research and application research methods,statistical analysis, and comprehensively using economics, management science,synergetics theory, governance theory, audit theory, game theory, methodology andother disciplines of knowledge, the research of the government investment projectaudit based on synergy and governance theory is studied.Using the theory of public goods, externality theory, synergy theory and so on,the government investment project audit nature of quasi-public goods, thegovernment investment project complex system and governance characteristics areanalyzed. The motivation of the government investment project audit based onsynergy and governance theory is studied. The paper also shows that the synergytheory, governance theory and audit theory are theorical fit, and gives a gameanalysis on audit stakeholder groups, and then reveals the audit internalmechanization and theoretical feasibility.After analyzing the previous government investment project audit problems,the paper proposes audit implications based on synergy and governance theory.Through the analysis of the government investment audit model based on theincentive constraint theory, synergy and governance orietnted aim is set up.Considering the government investment project particularity and the independenceof the audit, based on information entropy theory, the organization structure, process structure and information transfer structure are dsigned. It determines theaudit subject, audit object, the basic content and the key control p oints. All ofthese form the synergetic governance audit mode.From the perspective of game theory and bounded rationality, logical startingpoint of audit mechanisms based on synergy and governance theory is proposed.After analyzing the overall performance and synergy of a government investmentproject, the realization path of synergy audit mechanism is raised, namelymanagement elements synergy audit, process synergy audit and organizationsynergy audit. Based on the analysis of the internal and external governancemechanisms, the realization path of the internal and external governance auditmechanisms is raised. Based on information economics, game theory anddissipative structure theory, the mechanism of audit information interaction isanalyzing, and the realization route of the audit information interactionmechanism is raised.Through the methodology, the overall framework of the governmentinvestment project audit methods system based on synergy and governance theoryis put forword. The paper designs the evaluation index systems and approachs ofsynergy audit and governance audit, raises the implementation methods, obtainingevidence methods and information technology methods according to auditprocedure.Finally, five expressways audit based on synergy and governance theory isstudied as a case study. The results show that the audit, with strong operability,can improve performance, reduces the information asymmetry, meets the demandof social public supervision and improves the efficiency partly. The paper alsoproposes the advice about the audit based on synergy and governance theory. Inthe process of the study on the government investment project audit based onsynergy and governance theory, the paper applys a variety of theories and methods,which enrich theoretical system of synergy and governance theory. The in-deptheconomic characteristics and mechanization analysis of the governmentinvestment project audit based on synergy and governance theory expands thedimensions of audit theory. The paper provides a new theoretical support to solvethe problem of asymmetric information, lays the theoretical foundation for auditpractice. The government investment project audit based on synergy and governance theory mode is designed, the mechanism is constructed, methodssystem is proposed, which support the scientific decision-making and help tobalance the interests of all stakeholders and improve the effectiveness of publicresources. All of these are conducive to develop an effective governmentinvestment project audit regulation and establish government administrationphilosophy of public service-oriented.