The Choice Of State Audit System Based On The Stakeholders' Game

Audit system in china belongs to Administrative model for the time being.Scholars have launched fierce discussion concerning our audit system.There are mainly several views,such as"legislative Approach","updatingApproach","vertical Approach","Dual Track Approach"and so on.Since Multi-Principal-agent relationships exist in the state audit ,we get the target of choosing the state audit is the maximization of the interests of the citizens from the perspective of Accountability.Because it is hard to measure the interests of the citizens of the country ,we make use of the incidence that Government managers get out of line to measure the interests of the citizens of the country.Then we analyse the game of all kinds of the stakeholders existing in the state audit,which guided by the Principal-agent theory, Public choice theory, Institutional Change Theory and Game Theory. On the basis of this analysis,the game between Auditing offices and Government has a deep impact on the choice of the state audit system,so we pay more attention to the game of these two kinds of stakeholders in current Administrative Model and Legislative Model.The audit system should been in accordance with the background of China,so we come into a conclusion that Administrative audit system can guarantee the interests of the citizens more than Legislative audit system by stakeholders'game analysis of two kinds of systems.There are several ways that we can lower the incidence of irregularities. The incidence of irregularities in Administrative Model will be less than that in Legislative Model by enhancing the probability of audit report,increasing the incentive income for auditing offices,improving the status of auditing offices and audit staffs.If we do these,the government managers will lose the impact on audit staff by which the probability of conspiring with audit staffs will been reduced. Administrative audit system is still the optimal choice for our country.But as citizens of the country raise the awareness of democracy,the incidence of irregularities of government managers in Legislative Model will been much more less than that in Administrative Model.The Legislative audit system will guaranteen the interests of the citizens more than the Administrative audit system, Legislative audit system will be the final choice in China.