Study Of The Law Of The National Audit System

The concept of audit refers to that the professional organ and the personnel shall independently implement audit supervision, verification and appraisal surveillance over the authenticity, legality and effectiveness of the financial revenues and expenditures of the entity being audited. The audit is differentiated according to the audit entity into the state audit, the internal audit and the social audit.What is state audit? And how to define its nature, responsibility, status and function? The theorists home and abroad have argued for these for a long time and different countries' state audit practice varies. This dissertation is trying on a tentative method from the legislative and judicial perspective to probe and analyze the state audit system.The author is standing on the footing of legislation and law to explore state audit system's reform and to define the status and function of state audit via deep research on the concept. The dissertation is divided into three parts: (1) the concept, nature and features of the state audit; (2) the comparison of state audit system in various countries,; (3) the development of state audit in China. These three parts forms an organic entity to promulgate the relations between state audit and the law to establish a Chinese characteristic legislative state audit framework.Here the state audit is defined as: a national surveillance confirmed by the national law to examine and supervise national cost accounting and the realization of national potency of public finance. This is largely different from the traditional concepts of "audit surveillance", "economical inspection", "public finance supervision" and the "process monitoring" and so on. Each country's state audit system differs but all demonstrates the relations among the state audit, the nation and the law. The state audit has the characteristics of independence, auto-discipline, heter-discipline and boundedness. In the modern society, the law is quickly becoming the carrier of the status and the function of state audit.There have been various modes of modern state audit in the world and these mainly fall into 4 categories, namely, legislation state audit, judicature state audit, executive state audit, and independent state audit. The major trend of the development lies in the legislation state audit and the independent type of state audit; while the executive state audit system, at present, only prevail in South Korea and China. The state audit system manifests the national power balance, and is largely decided upon the implementation of national rule by law. The state audit system decides the independence of state audit. It is true that the present state audit systems in various countries have their respective feature, advantages, and disadvantages, however, it is also true that those existing systems provide conducive experience and theoretical thoughts for China to construct foundation and premise of our own state audit system.The 1982 Constitution of the People's Republic of China stipulates that China practices an executive state audit system. The features and functions of the system go like this: first, the National Audit Office shall be set up by the State Council to be responsible for the audit work all over the country under the leadership of the Premier of the State Council, pertaining to the administrative order; second, the State shall carry out an audit supervision system to supervise the government revenues and expenditures of all the departments of the State Council, of the local people's governments at all levels and their departments, the financial revenues and expenditures of State-owned financial institutions, enterprises and public institutions, as well as other government revenues and expenditures and financial revenues and expenditures that should be audited in the light of this Law; third, auditing organs shall have executive power and shall independently exercise their power of audit supervision in the light of the law, and not be interfered by any administrative organ, social organization or individual; fourth, China has formed the legislative system and audit structural system of executive state audit.Our country's executive state audit system is achieving enormous political and social benefits both theoretically and pragmatically, but the same time is still with severe flaws, such as the audit independence is insufficient, the audit scope is not wide, and the audit jurisdiction expands excessively and so on. Thus, China's state audit system reform, must strive to establish a Chinese characteristic system of legislative state audit. Its status is-- CNAO reports directly to NPC and CNAO is a paralleled organ with Supreme Legislation and Supreme Court (one government, three organs); its basis is- constitution and law; its function is- examine national cost accounting, promote realization of national public finance's potency; its responsibility is- fulfill audit verification, appraisal and notarization function, announce findings of audit, and submit report of audit and suggestion. A Chinese characteristic system of legislative state audit can best serve as a mirror to reflect people's will and benefit while the same time enhance the independence of state audit, expend the scope of audit, improve its flexibility, and fully exert its supervision function. State audit does not have the power of administrative execution.The features of present executive state audit system in China is: the state audit is responsible to the executive power and after executive power authorization, reports the audit supervision result to the Standing Committee of the National People's Congress. The audit status is independent and all levels of audit organs subordinate to all levels of the government. The state audit exercises the administrative law enforcement power. To reform on our country's present state audit system and to establish a Chinese characteristic legislative state audit system, is to borrow from the overseas state audit experience, and to promote the development. First, borrow from the legislation and the independent type of state audit experience, absorbing the essence and let go the demerits, and in line with our country's state structure, legal regime, to establish an auditing state audit system by legislations through our supreme Legislature, to transform the state audit into the provisions of constitution, setting up the judicial guarantee of the independence of audit organization, audit members, and the audit funds; second, the auditing state audit system construction must adapt to the national condition in an evolutional manner to reform the present executive state audit system first, accumulating experience for further growth; third, properly handle the relations of developing and constructing the state audit system to re-determines our country's state audit function via audit personnel law reform , to enhance state audit independence, to advance democratic and legislative process, and to improve our state audit system.In brief, after china's state audit experienced 25 years' of exploration and innovation, it has finally stepped onto the path of development synchronized with the national modernization. Along with our national reform and open-up policy to further deepen as well as the advancement of rule of law, a brand-new, and fully Chinese characteristic legislative state audit system is to blossom in the process of building socialistic modernization. This is to be definitely decided by the major historical trend of reform and development.