Government Audit’s Anti-corruption Function In The Perspective Of Value Chain Theory

The Third Plenary Session of the18th CPC Central Committee has claimed abig decision on major issues concerning comprehensively deepening reforms, inwhich strengthening anti-corruption institutional innovation and institutionalguarantee has been focused on. The effectiveness of government auditing toanti-corruption have been widely recognized, but most existing literatures usestandardize research methods and case study approach to study the relationshipbetween government auditing and anti-corruption. This paper is set to study thementioned relationship with empirical research methods in the perspective of valuechain theory.Combining with the Enterprise Value Chain Model and the characteristics ofgovernment audit, this paper constructs the Government Audit Value Chain Model onwhich Audit Evidence Collection and Processing, Audit Product Completion andFollow-up Audit are considered to be three strategic components. Based on this, thispaper uses empirical analysis method to analyze how the mentioned components onthe Government Audit Value Chain influence the anti-corruption effects ofgovernment audit, with data of local government audit agency. The result shows thatthe higher degree of follow-up service audit and product completion are, the greaterthe role of government auditing play in anti-corruption. Accordingly, this paperconcludes Follow-up Audit and Audit Product Completion are key componentswhich have the biggest effects on anti-corruption, and that the three strategiccomponents should be integrated effectively to guarantee the anti-corruption efficacy.Thus, we suggest government auditing agencies strengthen the rectification checkand improve audit results announcement system.The innovation of this paper is to construct the Government Audit Value ChainModel, analyze the three most important components, and do empirical research ongovernment auditing’s efficacy on anti-corruption. The study will do help to deepenthe understanding of the government auditing’ governance efficacy and to promotethe effectiveness of government audit play in corruption governance.