A Research On The Monitoring Of Auditng Activities About The Special Funds For Housing Maintenances (SFHM): A Chinese Perspective

The special fund for housing maintenances (SFHM), as a pension fund for apartment's going, guarantees the daily use of the residence, and secures the sheltering effect of the apartment. It involves thousands of people and their families. There's such a large quantity of problems in current management of the special funds of apartment maintenances as the un-efficiency and the abuse appreciations. In current theory and practices, there is no consistent conclusion about the questions as following. What can be done to strengthen the monitoring power of auditing the special funds management? What should be done to make the funds free of various risks? What will be done to secure the efficiency and effect of the use of the special funds? Who should monitor the auditing activities, what is the monitoring pattern of the auditing activities?This paper, employing a normative analysis, investigates the SFHM's audit monitoring in four sections. First, the paper begins with the system of SFHM, the laws and regulations about the monitoring of auditing activities, to specify the objects of the monitoring of auditing activities. Second, the paper analyses the current conditions of the SFHM's management. Third, the paper pays more attention to the pros and cons of the government monitoring of the auditing of the SFHM. Forth, the paper investigates the reason why there are many weaknesses in current pattern of the monitoring in auditing SFHM. This section lists the policies and measures which can be employed to improve the quantity of the monitoring in auditing SFHM.The paper contributes to the existing literature in three dimensions. Firstly, the aboard patterns of monitoring in auditing SFHM are market-oriented, there is principal-agent relations between the owner's committee and the CPA firm. While the government takes the charge of making and implementing corresponding policies to protect the properties'owner's rights. Secondly, considering current conditions in our country, the government, as a setter of specifications and supporters of securing the SFHM funds, should guide the monitoring of auditing in SFHM. Thirdly, the management of the SFHM is composed of four parts, that is, to collect, to use, to monitor, to keep and increase its value. Given the settings above, the key to build an effective and efficient pattern of monitoring in auditing in SFHM is how to trade off among the government auditing, internal auditing and the CPA auditing.There are two novels in this paper. The first is the new perspective. A combination between the SFHM and the monitoring of auditing is employed in this paper. The second is a more effective policy that can improve the monitoring in auditing. The paper suggests that the government auditing should play a dominant role, the internal auditing a basic role, and the CPA auditing a supportive in the monitoring activities of auditing in SFHM.