A Study On General Financial Inspection System

General financial inspection system (GFIS) is an outcome of market economy. Its mechanism reflects the demand of Trust Agency Theory. China is now on her way of economy system transition. Witli the development of Chinese reform and market economy, government and enterprises are gradually set apart. And so do the ownership and management of enterprises. As the representative of state-owned property right misplacement and the imperfection of the corporate governance, system, executive is not effectively controlled, and financial supervision on enterprises is weak and asset is lost seriously. So it has been an important project to establish monitoring mechanism to protect the interest of investors. It is a critical issue concerning the success or failure of the reform of economic system in China to conduct an effective inspection on the manager's work in the state-owned enterprises so as to reduce the loss and waste of state-owned capital. The practice of General Financial Inspector (GFI), with the inspectors selected and entrusted by the administrative departments of state-owned property, and representing the state government in their practice of inspection on the behaviors of the managers, is beneficial in promoting the competitive and profiting capacity of the state-owned enterprises and can solve, to certain extent, the problems of insufficiency of the executive and inspecting behaviors in the state-owned enterprises.Standing on the point of improving the corporate governance system and protecting the interest of investors, the writer researches the content of GFIS and the related issues in practice. Based on the comparison and analysis on investor monitoring mechanism of foreign countries, and combined with characteristics of Chinese enterprises and experiment practice, the thesis puts forward the mode of Chinese GFIS, which includes GFI's function .different assigning approach, GFI's responsibility, right and welfares, GFI's employment, management and appraising, the relationship between GFI, manager, chief accountant and other aspects. The writer also analyses the problems during the operation of GFIS, corresponding solutions and how to perfect this system.Chapter 1 IntroductionIn this chapter, several aspects have been discussed, including the origin and understanding of GFI, the practical sense of GFIS, benefits of GFIS to perfect the Corporate Governance. As a result of continue reform and perfection on the finance supervision system, GFIS is the integration of supervision and administration. Besides, GFIS is also a part of Corporate Governance System. In practice, GFIS plays positive multi-roles.Chapter 2 Basic contents of GIFSFirstly, three GFI assignor and assignees have been analyzed on their advantagesand disadvantages. In the second part, the rights and liabilities of GFI have been explained to make sure what rights should be entrusted to GFI for the fulfillment of their responsibilities. The third part concerns the managing system of GFI which consists of GFI employment and concentrated management system, combined-signing system, reporting system in fixed and non-fixed term, retreating and shifting system and checking & awarding system.Chapter 3 Basis of GFISGF1S have its basis on theory law and practice. Theories could be found in the modern property system, Trust Agency Theory and Insider ' s Control Theory. Legal basis are indicated by the accordance between GFIS and law as well as its amendment Finally, the low-cost of supervision by GFIS reflects its practical basis. Besides, GFIS is also conducted as an international practice.. Finally, the low-cost of supervision by GFIS reflects its practical basis. Besides, GFIS is also conducted as an international practice.Chapter 4 relationship between GFI and its related aspectsTo deepen the understanding on GFI, it is necessary to make sure the relationship between GFI and chief accountant, manager, supervision, committee, CPA, etc. In this chapter, differences and...