Offering Foundation Audit Exploration

Since the 1990s, under the background of deepening government reform and improvement in market economy, the folk non-profit organizations, including foundation, have sprung up and grow stronger, which became "the third sector" to save government failure and market failure and take the responsibility in many aspects of social life. Although the rapid development our non-profit organizations got, a series of influential public scandals outbreaked frequently, such as "Hu Manli", "Guo Meimei". Under the push of Internet, charity credibility was devastating. So the Red Cross and other charities’ donation revenue slumped a lot, foundations are facing an unprecedented credit and even survival crisis. Due to multiple stakeholders and the public responsibility obscured, some foundations are lack of money utilization rate. With the improvement of public accountability consciousness, people pay more attention on the movement of donations, benefit objects and the project schedule. Thus audit supervision and information disclosure of foundations will get more attention both on the media and the public.We should pay more attention to the influence of the foundation development and charity behavior. Only strengthening audit supervision, the information transparency will be enhanced and the charity credibility will be reshaped. Foundation’s public welfare determines its special fiduciary duty, so auditing foundation has different purposes and social mission compared with other auditing. Thus the audit ideas, methods and emphasis should also be different. Foundation audit now draw lessons from the Risk-oriented audit. But due to the possibility of self-interested agent tendency and moral risk, Risk-oriented audit is unlikely to satisfy public accountability to the foundations. The purpose of this paper is trying to change the auditing mode to make the audit supervision function more efficiently, to realize special social mission the public endowed on the basis of foundation financial compliance, to improve the financial system and internal control in foundation, to strengthen audit supervision and information disclosure, to build a "immune system" of national auditing, internal auditing and social auditing. Audit accountability is an effective means of managing and controlling public funds, which originated from national audit and conform to the special requirements of strengthening sociability. Therefore, I put forward to the public accountability oriented audit mode to solve the current "only audit not accountability" and "only accountability not remedy". It not only can achieve the special auditing purposes neglected to risk based auditing, alleviate the parties crisis of confidence due to information asymmetry, it will also be able to create a more open and transparent social environment, reshape the charity credibility and put our country’s public welfare undertakings to another development climax.