Research Of Evaluation Of Government's Public Investment Beneficial Audit

Li Jinhua, Chairman of National Audit Office, have said we must understand the nature of audit again. What is nature of the audit? It is outcome of law and democracy, and also is the instrument of them. That is to say, the audit office provides service for democracy and law. But how the audit serves for them? Beneficial audit is an important way. In our country, the concept of performance-audit about government public works has not been defined. The author believes that it should be a kind of government audit which supervises and appraises those projects of public work such as decision-making, project-management, efficiency and effect of fund application, effect on environment and policies, possible benefit and responsibility of the relative staff independently and objectively; and the public works should be financed by government finance, special funds or loan funds. It aims at providing the information about investment performance to taxpayers, actuating to revise the deviations in the process and the direction, establishing and improving the internal control of project entity, decreasing its expenditures as much as possible, achieving a more effect of economy, society, environment and policy. With the deepening reform of the investment and finance system in China, more and more financial funds are mainly invested in public works instead of competitive fields. Government public works is the foundation of economy and the core of public expenditures, with wide expenditure, huge-amount investment, complex process, and influential factors.Therefore, the core contents of government's public investment are evaluation of the activities of the government. The index and standard of the evaluation is one of the most important. The thesis pays great attention on how to set up the evaluation index system of beneficial audit from the audit point of view and how to decide the evaluation standardThe thesis is composed of seven parts. Firstly, it describes the evaluation index and standard of the government public investment. The evaluation index set a limit to the government public investment; the evaluation standard, which is the criterion of the evaluation, guides and standardizes the government's activities in accordance with the laws and other regulars. Secondly the thesis design the idea on how to set up the evaluation index system of government public investment beneficial audit, and succeeds in building up the index on the basis of full analysis on the activities of the government, of weighing the economy,efficiency and effect of government expenditure involving of the funds and construction management. Finally the author analyzes performance audit with an instance of audit practice, using the theory on how to set up the evaluation index.