The Research On Risk Control Of County Fiscal Audit

Nationwide county fiscal audit has practiced a system of supervision through auditing the budgetary revenues and expenditures of local governments since 1994 when the Audit Law of the People's Republic of China stipulated that the budget of corresponding levels shall, through auditing system, be supervised. The successful achievements of this system have shown the adequate macro-economic supervision function on county fiscal audit over local finance and economy. Under the impulse of practice of the New Public Management, the administrative ideas of the county governments have been transformed and the right consciousness and the sense of participation of the social public have been obviously strengthened. Both the National People's Congress and the social public hold a view, through auditing the budgetary revenues and expenditures of the local people's governments, to increase the transparency of government's work, to strengthen supervision of audit institutions, to prevent corruption and to improve the management and service efficiency of county governments; all these objectively require the county fiscal audit to reinforce the audit surveillance strength and the administrative strength, and to undertake the auditing responsibility to the social public. The contradiction between the rising expectation of the social public to the audit of the budgetary revenues and the quality of county fiscal audit, increases the audit risk of the county fiscal audit. Besides, confronted with the implementation of the public proclamation system, the audit county fiscal shall face new challenges due to the restriction of the current audit administration system and the means of public proclamation system. To this extent, it is of great theoretic significance and practical value to study the risks of auditing the budgetary revenues and expenditures of the county governments.The causes of the risks of the county fiscal audit are complicated and the mission of preventing and controlling these risks is difficult and hard. This thesis firstly states the related definition, summarizes the previous literature of this field, and introduces the framework and the methods of the paper; secondly, this thesis analyses the inner causes of the risks of the audit system through the Public Consignation Theory, the Public Choice Theory and the New Public Management Theory; thirdly, this thesis structures the audit system risk model of the county governments through the reference of modern audit risk model in nongovernmental audit process ,then gives detailed analysis of the restricted factors of significant misstatement of accounting statements and inspect risk in the model; finally, this thesis analyses the necessity and the overview of preventing the risk of county fiscal risk, and points out preventing and controlling strategies of the significant misstatement of accounting statements and inspect risk.