Study On Problems And Countermeasures Of Accounting Regulation System For Social Security Funds In China

Social security is like a kind of important regulation arrangement for a country to fulfill the social responsibilities. It is a project for people's life and our country. Since the founding of the People's Republic of China, especially for the past thirty years of reform and opening-up, our country has achieved outstanding accomplishment in respect of social economics. Social security system has developed quickly accompanied by expanding economy. As we enter into the new century, social security system has also gotten high attention of the leaders. Such kind of social security system covering urban and rural residents has become an important part of harmonious society. At present, although social security system in our county is rooted in the land with many opportunities, it still stays in the transformation and discovering period. Our country is a developing country, with great number of people and little resources, economy developing unbalanced between east and west part of the land. It definitely will meet many difficulties if we want to build a social security system including 1.3 billion people. Premier Wen used to say that any number multiplied by 1.3 billion can be a very large one. Therefore, at present stage in our country, social security system will encounter the bottleneck—shortage of funds. Social security funds face such predicament.Since recent decades, developed with social security business, social security funds scandals have become a serious illness influencing the system's health. In 2007, a case about Shanghai social security funds shocked the whole country and the world. The defect of social security funds in our country has turned to be a kind of carrier of scandals. If we let it go it must topple over the development of social security's health. Therefore, how to ensure the funds safety has been an urgent task. As a certain mechanism and method, accounting occupies an undoubted position for supervising social security funds.In this article, at the bases of introducing the theories of accounting regulation for social security funds, contacting with the problems existing in the system, the author believes the main reasons causing the lack of accounting regulation are as follows. Accounting principles and institution are hysteretic and lack of executing. Social security system is not perfect. The supervision made by government and industry is inadequate. There is low attention of public opinion and weak awareness of supervision from ordinary residents. Compared with social regulation measures used by America, Sweden, Singapore and Chile, where social security system has a higher level and distinctive characteristics. We suggest regulating the accounting for social security, strengthening information disclosure, government's guidance and monitoring paying equal attention to rewards and punishment. Build a powerful social accounting regulation and constructing the modern social security network with plenty of methods.At last, combination with our country's basic condition and the international experience, the author proposes the framework of how to complete the accounting regulation of social security funds. Establish an independent accounting regulation for social security funds, leaded by the government, assisted by the additional accounting regulation system. There are some specific implementations. Firstly, set up an internal accounting system by strengthening internal control,internal audit and completing accounting principles. Secondly, establish an external accounting regulation, which is made up of social audit, government audit.Thirdly,optimizing the external environment of industry self-discipline and social spontaneous.