On The Reform Of The National Audit Organizations

Auditing, as an important means of supervision, has seen 15 years in China. In the past 15 years all the auditing bodies at different levels, under the leadership of the central government and local governments~ have developed an auditing system with our country抯 own characteristics and achieved great significance. Meanwhile, problems also come up with the shift of our social and economic systems. Serious fraud in accounting is in the way of the application of auditing law. Distractions are serious when auditing bodies are observing their duties. The relations between auditing and other means of supervision are not properly arranged. The risks in auditing are growing, as it is weak at local levels. The operating principles of our auditing bodies also contribute to the above梞entioned problems.New strategies of China抯 modernization ~ St~t~y have been put forward at the party抯 l5~ conference and ~ section of Ninth National People抯 congress, which also serve as guidance for auditing is facing with new tasks and challenges. How can auditing grasp the opportunities and meet with the challenges? This deserves keen investigation and study.This paper, by comparing auditing systems abroad and at home and reviewing the past experiences of China抯 auditing system, submits the author抯 blueprint for the con3struction of china抯 auditing system in 2lstCentury. The paper is put into 4 parts as flows:Part One: comparison and analysis of auditing systems in foreign countries , It can be classified into 4 groups : auditing bodies attached to legislative bodies auditing bobies attached to judicial bodies, auditing bodies attached to administrative and independent auditing bodies. Their forming and working principles are introduced.Part Two: History and changes of auditing systems in China is introduced. The rapid improvement of auditing under the Party抯 leadership is of great significance for its future development.Part Three: Challenges China抯 auditing system has to meet. This part analyzes the current situation and characteristics of China抯 auditing system. While stating the positive role it has been playing as a chief means of superfTowvision, the author points out the problems and their causes in auditing system in china.Part Four: Development Trend and proposed reformation Plans. Prompt reformation in auditing is inevitable. Two alternatives in reformation are suggested: The modest one: reform the present auditing system to make it more efficient and complete. The radical one : separate auditing bodies from the administrative bodies and put them direct under the People抯 congress by making amends in the Constitution. The bases of the proposed plans are also explained.