Study Of Resign Audit Based On The Case Of The Former Manager In Jiangsu NT, Inc.

With the rapid development of Chinese economy, the economic responsibility ofleader’s of China’s enterprises and institutions has become more and more complex, aspart of leaders’ economic responsibility audit, resign audit is also increasingly important,as a basis for evaluation of leading cadres, and binding on cadres, it has made importantcontributions to socio-economic stabilization and development. Not only that, but resignaudit also is favor to improving cadre management system, standardizing the cadre, andpromotion of a clean and honest Government, verified the reason, objective and impartialevaluation before successor operating performance and promoting leading officialscomply with financial regulation law. But the research on resign audit is very limited inour country and the academic studies are also very scarce which led the auditing lawdirectly to be in the state of the Central Directorate, State Council enacted in1999, the<State-owned enterprises and State-holding enterprises of the provisional regulations oneconomic responsibility audit of leaders>. Furthermore, it also lack of explicitlydescription of the existing of auditing risk and auditing practice specification. Resignaudit in our country is still reference audit of financial revenue and expenditure based onthe financial statements, and not to the main object of auditing "person" in auditing forthe Center, and auditing personnel often neglect has left or will leave impact of leadingcadres on audit. Therefore, resign audit needed refine the theory, complement the law,and implement the regulation.This paper is mainly based on an auditing case about the former General ManagerWang of Jiangsu NT food Corporation. In this case, the audit storm activities in JiangsuProvince make the province’s State-owned Grain and Oil Company to carry out specialaudit activities. In audit storm activity implemented in Jiangsu Province, Audit Bureau ofJiangsu province’s carried out special audits in the State-owned grain companies, andduring this period they found NT company of significant audit risks. Then, according tothe significant audit risks that identified, the Audit Bureau decided to begin the resignaudit on the former manager Mr. Wang, and eventually identified that Wang wassuspected of corruption, abuse of Office crime facts, for the State and society to recoverlosses, brought out corruption "worms" in the society.From these cases can we see that there are some problems of resign audit in ourcountry, such as the company cannot adhere the principle of “auditing first, outgoing after”, weak internal control, the bad inference of the resigned leaders, auditing inidentifying the impact of lack of accountability and so on.A description and analysis of the case, it can be seen that resign audit and audit offinancial statements is significantly different, they have different objects, different centrepoint. The former is mainly focus on "person", and the economic responsibility of him orher, while the latter is on the financial statements, and legitimacy, accuracy of thestatements. Though resign audit is a way to restrain the leading cadres’ economicbehavior, in the case of auditing theory is not perfect, and it cannot be a weapon to rein incorruption. We can solve it by the ways to strengthen the focus and emphasis on resignaudit, combine the key point and general point of resign audit, increase efficiency andensure quality, distinguish between economic responsibility in auditing work and otherseries of tools, and finally addressed both efficiency and effectiveness when begin aresign auditing work.