A Study On Government Audit And National Financial Security

Nowadays, the shadow of American debt crisis and the European sovereign debt crisis is covering the world and economic development and financial security of every country is facing severe challenges. How to maintain financial security to avoid the financial crisis, and maintain macro-economic stability becomes the puzzle that all countries should face. In order to maintain the security and stability of financial system, a lot of countries take measures to strengthen financial supervision. However, if countries are simply to strengthen financial supervision, and not to strengthen the compliance supervision of regulatory bodies and financial institutions, then there will be risks for the financial system. Therefore, a lot of countries are strengthening financial supervision, and at the same time they are taking measures to strengthen government audit to maintain financial security. Because national financial safety relates to all aspects of a national economy, no one branch can bear the responsibility of maintaining the security of national finance and safeguarding national economy safety. The country needs various departments to act with united strength to maintain the security of national finance. The government audit department has the abilities, such as economic supervision, economic checking, economic evaluation, and at the same time the audit has independence and technical characteristics. The government audit as a national basic control tools, is to improve the national political system, and strengthen the management of national economy. The government audit can ensure the safe operation of national economy and maintain the security of national finance.In our country, the government has launched4trillion yuan to rescue the economy from the impact of American subprime mortgage crisis. How is the implementation efficiency of these projects and funding? This requires the government audit supervision. And the local governments in our country build a large number of local financing platform through a variety of ways, which presents large amounts of debt and risks, and may bring influence to the financial system of our country. Therefore, our country needs to use government audit and other departments matched to resolve the debt risks of local government to maintain the stability of financial system.There are three innovations in the paper:Firstly, this study has very strong frontier and reality meaning. The scholars have been mainly focused on the government audit and government audit safeguarding the economic security of the state, but the paper studies the connotation and orientation of government audit from the national financial security perspective, which is of great significance to perfect government audit theory. At the same time, the national financial security is the big problem which China’s economic development is faced. This paper studies government audit and national financial security, and explores the relationship between the two, which will help China develop finance and economy stably and optimize government auditing system.Secondly, the paper mainly uses factor analysis and principal component analysis method, and strives to achieve three combinations. One is to combine theoretical analysis and empirical research. The theoretical analysis is to use strict logic reasoning of the government audit in the maintenance of the state financial security mechanism, and presents the model of testing government audit monitoring and early warning. Empirical research is to use our statistical data to empirical test government audit in the detecting and early warning mechanism. Two is the combination of qualitative analysis and quantitative analysis. This paper uses logical deduction method to put forward that the government audit should establish macro, medium and micro mechanism to safeguard the financial security of the state, and use the principal component analysis to test the effectiveness of the microscopic mechanism of monitoring and early warning. In qualitative analysis, this paper analyzes and establishes the microscopic monitoring early warning index system; in quantitative analysis, the paper combines Stata, Eviews and Excel statistical tools to conduct empirical analysis. Three is analysis of subjective and objective analysis combination. This paper uses our country monetary system, banking system and international loans data to test the validation of government audit in the maintenance of national financial safety monitoring and warning mechanism validity from an objective point of view. At the same time, the author puts forward policy recommendations to optimize our government audit based on the empirical research.Finally,in this paper, we study the government audit in the maintenance of national financial safety, standing in the national economic and financial safety strategy, according to the connotation and orientation of government audit, evaluating the financial security of our country. And we study the mechanism and the specific role of government audit in the maintenance of national financial security and early warning and monitoring mechanism, explore the relationship between financial instability and financial crisis, analyze the effectiveness of government audit maintaining the state financial security. Lastly, we put forward countermeasures to build suitable audit system according to our country national conditions, and then present suggestions to optimize our government, which will lay a good foundation for the further study.This research can not only help us deepen the existing government audit theory, but also help us study government audit function in debt crisis era. It has important practical significance to study government audit to maintain the financial security. This is the purpose of this thesis.