Research Of Realistic Problem About Our Country's Practice Of Performance Audit

Since 1994, China Government has implemented a series of reformation in finance and investment system. With the deep and continuous reformation of finance system, which objective is to establish public finance, the public finance system and frame has gradually completed. Government function has changed from original fully control all aspects of society economy to only compliment ineffective part of market. The focus of government investment has turned to non-competitive projects in public investment area. In the development plan of audit work for year 2003-2007, audit bureau clearly indicates that positively developing performance audit and improving the management level and usage efficiency of financial capital. The bureau requires auditing not only the behavior of non-compliance to law and against regulation in the usage of project construction capital, but also the efficiency and effectiveness of capital usage. The development of performance audit has to be considered as an important task of audit work to implement. It has been an important topic that how to improve the performance audit of government projects in audit area in China. Therefore, this paper chooses the performance audit as study subject, and discusses the relevant issue of performance audit in theory and practice. However, the performance is only at the start-up stage in China, lots of problems need to be studied. This paper is only focus on the performance audit of public financial capital disbursement, not refers to state holding corporation or financial institution.By introducing foreign countries' implementation experience of performance audit, this paper discusses and researches the existing problems and improvement programs in the current performance audit. It tries to provide some policy and procedure recommendations for effective implementation of performance audit in our country.The paper mainly discusses the following issues: 1 The summary of performance audit concept. The content of performance audit mainly contains economy, efficiency, effectiveness, and the reason of why performance audit becomes inevitable result of audit development. 2 Major implementationproblems and difficulties in performance audit. The paper thoroughly discusses appraisal system and quality control system of performance audit, and recommends some advanced experience of foreign countries, which provide reference for healthy development of performance audit in China. 3 Indicating the dilemma that China is confronting with during the development of performance audit, analyzing howinsufficient independence of current auditing system restrict the development of performance audit in China. This situation is mainly presented as that local government controls all resources ("actual power") of audit organization, such as staff and finance resource, as a result, the phenomena of "self audits self inevitably has negative effect on the implementation of field work for performance audit and effectiveness of performance audit.Based on the research and discussion of above issues, the paper propose the following: establishing related regulation, clearly indicating the status of performance audit in law, consummating the audit criterion and appraisal standard of performance audit etc.; organizing the training program for audit staff in order to improve the competence of audit staff; by legislation, adjusting audit scope in the country, reforming budget reporting system of audit outlay to guarantee the independence of audit organization; gradually pushing the audit bulletin system; other improvement recommendation and methods, such as reinforcing the strength of monitor action in tracing audit responsibility etc.. Also, the paper proposes the economic standards of evaluating performance audit.