Problems And Countermeasures Of Hunan Highway Construction Project Audit Outsourcing

According to the requirement of Hunan Provincial Government&Committee,to regulate the government investment on Highway Construction Project and toimprove investment returns, Hunan Provincial Audit Department has carried outwhole-process tracking audit for all highway construction invested by Governmentsince June2009. In this way, most of the audit work is outsourced to accountingfirms, so the social audit resource is utilized effectively. To Hunan Auditgovernment, the audit outsourcing is a virgin land, no experience can be used.Therefore，it is important to discuss the method of audit outsourcing and thequestions in the process. This work have higher theoretical value and importantpractical significance to the whole-process tracking audit, the audit outsourcingpractice, and the Hunan Highway Construction.In this article, started with the necessity and feasibility, the theory of auditoutsourcing is analyzed from point of law, economics and management. The analysescome into a conclusion that the audit outsourcing for Hunan Highway ConstructionProject has legal support, cost-effectiveness and high benefit to optimize theallocation of social resources.Besides，combined with the audit outsourcing practice in Hunan HighwayConstruction Project, the problems in object selection, contract management andquality management are analyzed. This article put forward several feasible andpertinent suggestions:1) establish accounting firm database for GovernmentHighway Construction Project Auditing, and select the agency through bidding.2)Set up special department to manage the outsourcing audit and establish a unifiedcontract management list.3) Fulfill the outsourcing quality evaluation system andthe external peer review mechanisms, incentives, accountability etc.