Research On Department Budget Implementation Audit

Since2000, central departments have started trying to establish departmental budgets in reforming budget formation. Then, provinces and the financial departments at all level have tried to carry out this reformation and department budget management started with this in the whole country. As the drivers if this reformation, audit departments have paid close attention to its progress all the way. They served the department budget implementation audit as their primary focus and unremittingly supervised and propelled the development of the reformation. We have accumulated a lot precious experience and got outstanding achievements in compelling regulation of department budget management during this decade by the help of audit practice. In perspective of relationship between budget implementation audit and reformation of budget management, the former is the method and the latter is the purpose, which means method needs improving and purpose needs enhancing. This article does deep analysis of department budget management and budget implementation audit by way of qualitative analysis and empirical analysis combined practice in work in order to explore the inner-relationship between them in emergence, development and interdependency. The target of this study is to raise specific countermeasures and suggestions which could deepen the reformation of department budget implementation audit after summarizing and reconsidering the disadvantages in audit practice, and our analyses and suggestions are depended on inspection on the reformation of department budget management and comprehension on the reasons of the existing problem. This article is organized in five parts. Introductions, the first part, introduces the background and the mean of the subject, studies of financial regulation in the domestic and overseas and studies of department budget implementation audit in the domestic. Basic notions and theoretical analyses, the second part, represents department budget, department budget implementation, department balance, state audit, department budget implementation audit and so on briefly, and elaborates principal agent theory, governance theory and public finance theory and the relationships between each of these three theories and budget implementation audit. Problems and reasons analysis of department budget implementation audit, the third part, points out that audit functions didn’t achieve well, the aim didn’t rational, the scope didn’t wide enough, audit sanction mismanage, audit technology and audit method fell behind and performance audit carried out legging behind and so on which reflects practical problem in department budget implementation audit. Then we analyze deeply in unscientific finance and audit management system, imperfect legislations, mismatches of regulatory environment and restriction of objective factor. Countermeasure to deepen department budget implementation audit, the fourth part, based on further analyze to causes of audit phenomena, put forward suggestions which perfect audit purpose and range, deepen audit reformation, improve work efficiency, propel preformation audit and implement the audit announcement regulations roundly. The fifth part, we discussed the problems in department budget implementation audit and improvement suggestions by analyzing budget implementation audit in Shandong Province in2011.