A Study On Audit Supervisory Control Over Economic Power

With the development of building a socialist democracy, people have higher and higher expectations to supervise economic power. Report to the Seventeenth National Congress of the Communist Party of China about"Unswervingly Developing Socialist Democracy"was pointed out that:"Improve the mechanism of restraint and oversight and ensure that power entrusted by the people is always exercised in their interests. Power must be exercised in the sunshine to ensure that it is exercised correctly.…We will improve organic laws and rules of procedure to ensure that state organs exercise their powers and perform their functions and responsibilities within their statutory jurisdiction and in accordance with legal procedures. We will improve the open administrative system in various areas and increase transparency in government work, thus enhancing the people's trust in the government. We will focus on tightening oversight over leading cadres and especially principal ones, over the management and use of human, financial and material resources, and over key positions. We will improve the systems of inquiries, accountability, economic responsibility auditing, resignation and recall. We will implement the intra-Party oversight regulations, strengthen democratic oversight and give scope to the oversight role of public opinion, pooling forces of oversight from all sides to make it more effective."When we supervise the power, we must to explicit power firstly, and this has to explicit the contents of power. In order to supervise the economic power, we also should explicit the contents of definitely economic power. There is an alienation phenomenon of economic power, and have to carry on supervisory control. The economic responsibility audit is the effective way of economic power supervisory control. But, as a kind of guarantee mechanism to develop socialism democracy, as the important system of the economic power supervisory control, can economic responsibility audit play its role? How to effectively develop its function? This dissertation makes use of norm research and empirical research to study on audit supervisory control of economic power. The main contents include three parts: The first part is the theories analysis of the audits supervisory control of economic power, including chapter 1, chapter 2 and chapter 3. Based on literature review, combining accountability outlook, I think that accountability is a structural system. According to the symmetry of accountability and economic power, I draw a class economic power and item economic power. The alienation of economic power is unavoidable, and the special form is corrupt. The alienation of economic power must be supervised strengthen, and the economic responsibility audit is the effective way of supervisory control of economic power.Chapter 1 is introduction. It mainly include research background, study way of thinking and study method and cultural heritage overview etc.. Among them, the cultural heritage overview includes the economic power and its control comment, economic responsibility audits of the history origin and development, economic responsibility audit of abroad research condition, economic responsibility audit of local research condition and the research condition of accountability.Chapter 2 is economic power based on accountability outlook. From accountability outlook, according to the system views, the writer thinks accountability is a structural system, which is a 3D system and constitute of person of responsibility and responsibility of conduct and responsibility of report. The economic power is the necessary means to implement accountability, and there is symmetry of accountability and economic power. This dissertation set up a system of economic power based on accountability, and included class economic power and item economic power. The class economic power materializes in the government organization; non-profit organization and business enterprise organize. From the angle of hierarch, the power holder of government organization includes power holder of central government and the power holder of local government. The central government power holder includes a power holder of premier class and the power holder of ministries class. The power holder of local government includes power holder of province class, the city class and the country class. For non-profit organization and enterprise organization, its can divide each branch, its power holder may be divided into each branch power holder. The item economic power includes the external economic business power, economic running power and economic monitoring power. External economic business power is the economic power what is led to by economic events of investment and endowment etc. The economic running power is the economic power what is mainly for the sake of the target of carrying out the target in the organization. Economic monitoring power is the economic power what supervises components of organization. Economic running power includes power of macroscopically economic adjustment and power of business management. Power of macroscopically economic adjustment includes the administrative legislation power, interest rate policy establishment power, government obligation management power, property investment power, tax collecting power, expenditure power and budget implementation power. The power of business management includes purchase power, inbound management power, outbound management power and market marketing power etc. Economic monitoring power includes administrative control power and business internal control power. The external economic business power includes state-owners enterprise ownership and the enterprise external economic business power.Chapter 3 refers to the economic power alienation and the supervisory control of economic responsibility audit. In the relationship of principle and entrusted, owing to morals risk and the adverse selection, and distempered of incentive and constraint mechanism, economic power alienation was unavoidable. The corruption is a kind of special economic power alienation. Because of the alienation, we have to carry on supervisory control to the economic power. The usual supervisory control method contains law supervisory control, public opinion supervisory control and audit supervisory control. The audit supervisory control is a kind of effective way. Through the analysis of the development process of audit, the pertinence and important role of economic responsibility audit, the writer thinks that the economic responsibility audit supervisory control is the most effective way.The second part is the empirical research on the economic power audit supervisory control, including chapter 4 and chapter 5.Exampling of the government audit, the writer did the empirical research on economic power audit supervisory control of three classes about the central government section, local government section and leading cadres of county class. Exampling of the province class economic responsibility audit, the writer did the empirical research on economic power audit supervisory control about the power of business management and budget implementation power from economic responsibility audit.Chapter 4 refers to the empirical research about class economic power audit supervisory control. Exampling the nation audit in this chapter, the writer did the empirical research on economic power audit supervisory control l of two classes about central government section and local government section, and of leading cadres of county class. In the empirical analysis of economic power audit supervisory control of central government section, rectifiable ratio-- what amounts of pay to public finance-already divide by amounts of pay to public finance-should was used as substitute variables of effect of economic power audit supervisory control. The result of empirically examines indicates that it is significant positively related between the number of auditors Dispatched Offices and the effect of economic power audit supervisory control of central government section. For attaining better effect of audit supervisory control, it should increase the number of auditors of high quality. It is insignificant negatively correlated between the number of auditee and the effect of central government section economic power audit supervisory control. When auditor selects the auditee, the aiming mechanism should be build up, and the auditee should be selected fittingly, so that the effect of economic power audit supervisory control is maximally raised in the condition of auditor structure. While the empirical analysis to the local government section economic power, the writer adopt the City class data of economic responsibility audit. The result of empirically examines indicates that the effect of using funds economically will be reach when increase the number of auditor. When increase the number of auditee of economic responsibility audit, the effect of economic power audits supervisory control increase insignificantly and it is hard to produce bigger influence towards auditee. While the empirical analysis to the economic power of leading cadres of county class, the writer adopt the data of economic responsibility audit. The result of empirically examines indicates that the more amount of violation is detected and the more effect of crime of leading cadres of county class is attained. Only extending the number of auditee of economic responsibility audit, it is insignificant about effect of economic power control of leading cadres of county class. But should be reasonable to choose auditee, and to strengthen the detective, the effect of economic power supervisory control of economic responsibility audit will get better.Chapter 5 refers to the empirical research of single-item economic power audit supervisory control. The result of empirically examines of business management power audit supervisory control indicates that government audit supervises economic power of state-owned enterprise effectively, but the economic responsibility audit is insignificantly. This means that economic responsibility audit did not working effectively, when it supervises the economic power control of state-owned enterprise. The result of empirically examines of budget implementation power indicates that the economic responsibility audit can repress the fraud in the budget executive effectively when the amount of violation was discovered by economic responsibility audit.The third part is countermeasures and mainly includes chapter 6.Chapter 6 focuses on countermeasures to build the supervisory control system of economic power. For promoting the efficiency of the economic responsibility audits, it should make sure a target of economic responsibility firstly, and perfect the report system of economic responsibility implementing based on this foundation, and set up an audit control mechanism of economic power.In Chapter seven, the writer summarizes the main conclusions made in the dissertation and points out its innovations, limitations and directions of the later study.The main innovations of this dissertation are as follows:Firstly, from accountability auditing, this dissertation discusses the relationship between audit and economic power deeply.Secondly, from empirical research, this dissertation refers to the audit especially accountability audit control effect of economic power and obtained valuable empirical evidence. This is a major innovation in this dissertation.Thirdly, the supervisory control system of economic power was built preliminarily.