A Study On Auditing Standards Of Management Performance Of State-owned Enterprises

With the reform and opening conducted, China's economic system has gradually changed from the planned economy to the socialist market economy. State-owned enterprises has played a leading role as the leading force of China's national economy in the economic restructuring, they are becoming the modern joint-stock enterprises of the socialist market economy era from the state-owned enterprises of the planned economy era. After State-owned enterprises establish modern enterprise system, the traditional audit approach becomes insufficient, the introduction of a new audit approach--management audit becomes very necessary for improving the quality of supervision on the use of state-owned assets.Management audit originated a book--"Management audit", which was writen by Ross (T. G. Ross) who was an UK management expert and industry consultant in 1932, and it is the inevitable product of economic development. Management audit makes the fiduciary responsibility of corporate management as the audit object, and evaluating the effect of enterprise management as the audit purposes. It is not only concerned about the company's financial information, but also concerned about the corporate non-financial information. Through the nearly 80 years'previous research and practice, management audit has achieved certain results in the audit object and audit approach etc, and it has greatly expanded the business scope of the audit. However, management audit has a shorter development time than the financial audit after all, so its many aspects need to be studied. So far, the study of management audit focuses on the following four problems:not having a clear understanding on the nature of the management audit, lack of a generally accepted standards of management audit, lack of a viable evaluation standards of management audit, poor quality of auditors to carry out management audit. Among them, the most important issue is the study on management audit' standards, in terms of the present research, all researchers have not vet reached a basic consensus about this, and a mature. well-established standards has not been established.This paper will start the concept of management performance, derive the design of management performance audit' standards of state-owned enterprise. This paper argues that management performance audit' standards of state-owned enterprise should include three levels, namely:strategic management, management departments and quality of management personnel. In this paper, there will be three sections to elaborate the details of the concept of standards' design on these three levels, namely: the third chapter, the design of performance audit' standards on strategic management of state-owned enterprises; the fourth chapter, the design of performance audit' standards on management departments of state-owned enterprises; the fifth chapter, the design of audit' standards on quality of management personnel. This paper will make its own contribution to establish management audit standards through studying the design on the performance audits' standards of state-owned enterprises management.