On The Improvement Of China’s Audit Legal System

During the third meeting of the fifth board committee of China Auditing Society, which is also called the second board forum held in Nanjing on March31,2008, Liu Jiayi, the General Auditor, proposed an important theoretical viewpoint that national audit is the "immune system" for the healthy operation of the national economy and society. This viewpoint fully reflects that national audit plays a prominent role in the socio-economic development. At the same time, in order to promote the development of national audit and ensure its oversight functions, it is necessary to establish and complete the corresponding audit legal system. Thereby, it can adapt to the development of the socialist market economy and propel the process of democracy and legal institutions. Since the recovery in1982, after20years of development and perfection, the audit system in China has preliminarily established a relatively complete system and laid a solid foundation for the effective application of our audit function and the scientific development of audit work. However, compared with advanced legal system of audit in other countries and in the sight of requirements for china’s audit development, there are still some problems in our audit system, some problems will even restrict the scientific development of our audit work towards the modern direction. So how to perfect the audit legal system and provide more effective legal protection for our audit development become an important topic in the current field of audit theory and practice.This paper will base on the Chinese audit legal system and make use of the dialectical, systematic, historical and comparative analysis. After the discussion on the related theory of audit legal system, the paper will also take example by different audit legal systems in other countries in order to research the practice of audit. It aims to discuss the reform and perfection of audit legal system in our country and provide more effective legal protection for the further development of national audit work, which can combine theory and practice together.The paper is composed of four parts. Part1:Formation and development of China’s audit legal system. This part is mainly on the origin, definition and function of audit. And it also elaborates the forming process of China’s audit legal system.Part2:The main content of China’s present audit legal system. This section is mainly on China’s audit management system and the audit responsibility and authority of China’s audit institutions, and the relevant legal responsibility of China’s audit system.Part3:The problem of China’s present audit legal system.Through some comprehensive analysis on the present situation of China’s present audit legal system, this section will find out the shortcomings of our audit legal system from the following aspects:the defect of the independence and the regulation of audit personnel access, the law and regulation of audit announcement, and the audit decision, etc.Part4:Thought for making China’s audit legal system perfect.This part focuses on the improvement of the audit legal system, including the management system and the audit personnel access regulation, and making the announcement of audit results system strong, and detailing the audit legal liability and increase legal provisions of performance audit.