Study On Financial Responsibility Aduting In State-Owned Company

Financial Responsibility Auditing is a supervisory and managerial regulation aimed at enhancing supervision on the high-level managers of State-owned companies, the role of the regulation is to objectively evaluate the audited manager's financial responsibility during his/her managerial duty, hence to protect state-owned capital current and future value. Presently, related laws and regulations have not provided corresponding concept, evaluation standard, definition and scope on the financial responsibility auditing, and thus lacked objective and applicable definitions and regulations. Also, there are few systematic theories and practical researches on Financial Responsibility Auditing, as a result, many problems in the realm need to be tackled with as soon as possible.This author had, with the experience and knowledge accumulated during various auditing activities including auditing projects, researches and discussions in state-owned enterprises, and combined advanced internal auditing concept in China and other countries, systematic financial responsibility auditing research focusing on the disputed concepts and operational difficulties in state-owned enterprise.This article started from theoretical research, analyzed the reason for financial responsibilities auditing, specified the relating concept, and defined the auditing subject, contents and scope. Corresponding to nowadays financial responsibilities auditing problems, for example, lacking of auditing project planning and auditing standard, over spread of auditing contents, ineffective auditing result utilization, uprising managerial and auditing risks, and combined with internal auditing trend, this article detailed improvement and suggestions. The main points are active cross-department communication, widening on-the-job financial auditing, scoping the auditing focus on truthfulness of enterprise operational results and revenue/expense accounting reasonability, the quality and change of the enterprise assets, major operational decision, operational activities within the state's regulations and key performance indicator results. The suggestions in the article also tried to avoid unreasonably widening t scope and defined the financial responsibility auditing principle, scope and contents.In the article the author tried to build a financial responsibilities auditing indicator system, defined the financial responsibilities boundary, which make the suggestion applicable. For the propose of raising auditing result and utilization, the article made improvement suggestions on auditing party's organization, human resources managerial regulation and managerial training.The article also analyzed the reason for financial responsibility auditing, researched methods to improving auditing quality, discussed ways to protecting and controlling auditing risks and specified practical process to avoiding auditing risk.