Research On The Quality Of National Audit

This paper first reviews the development of the modern national audit in china and it's systemic background, besides, the paper provide an overview on the essence of national audit, the concept of national audit under the perspective of Immunity System theory, the indicators to measure the quality of national audit and the research methods. Based on these theory theoretical researches, the paper measures the audit quality of audit institutions at the provincial level using the multiple regression models and the differential equation model with the audit data from year 2002 to year 2008, which is gained from the China Audit Annual. The Immunity System theory considers that the national audit can play the role through immunological defense, homeostasis and surveillance to protect the health of modern society and economy. Because of the limitation of audit data, the paper just researches the function of defense and surveillance. The empirical research of the multiple regression model shows that the force of defense and surveillance this year can have a positive influence to the effect next year, and the effect of defense and surveillance this year can have a positive influence to the effect next year too, but these influences are not significant, which means that the national audit nowadays can just play it's immune system function to some extent. The differential equation model obtains the similar conclusion, it indicate that the national audit in some provinces really can play the role of immune system well, but the other provinces are just in opposition, the national audit is even beyond cure. The situation is very worrying, and it cries out for the reform of the audit system. The paper study about the quality of national audit with lots of data and some innovative methods under the perspective of Immunity System theory, besides, it put forward some further countermeasure and suggestion to improve the audit quality. So we can say that the paper is of profound theoretical and practical significance.