Research Of Audit Coverage’s Influence And Countermeasure On Audit Effects

Repetitive violations after auditing occur even the government audit mechanismshave constantly been improved and perfected, which indicates the improvement ofaudit effect is a long-term and arduous task. Based on reviews and conclusions frompast researches, this article defines and decomposites audit effects into three factors tomeasure, which are the amount of violation, execution rate of audit sanctions andpenalties and adopotion rate of audit recommadations. Introducing the static gamemodel and use the deterrent theory as foundation, theoretically analysed the influencesof audit coverage on audit effects by deterrent effect, political cost and pressure ofpublic opinion, environmental effect and mass effect. Then regression analysis thedata of local audit agencies from31provinces and cities in2004,2008,2009and2010to empirical research that the improvement of audit coverage could effectivelypromote the upgrade of audit effect. Ultimately proposes by three aspects,audit plan,audit investment and audit informationizaiton, to improve the audit coverage, andraise policy recommandations to improve the conduction mechanisms of auditcoverage’s influences on audit effects.