Research On Government Audit Practice Utilizing Internal Audit Resources

China’s national audit advocates establishing a scientific audit concept, givingplay to the immune system function of audit supervision, participating actively instate administration, realizes full coverage of audit supervision. Government auditauthorities have more responsibilities. China’s national audit highlights endeavor toachieve full coverage of audit supervision. Achieving this under very limited auditresources is a great challenge for China’s government audit authorities. Judging fromthe government audit strength, audit tasks and other statistical data, the governmentaudit has encountered enormous practical difficulties in term of audit. Therefore, thispaper studies the starting point of government audit in term of utilization of internalaudit resources to make up audit quality deficiencies arising out of the aforesaidobjective limitations in audit practice.This paper draws on existing research outcome, proceeds from labor divisiontheory, resources integration theory and the innovation theory of new Schumpeterschool, and analyzes the theory foundation of government audit using internal auditresources. Then it revolves around the analysis of government audit authorities andinternal audit development status, and concludes the necessity of government auditauthorities using internal audit resources. It analyzes the feasibility of governmentaudit authorities using internal audit resources, and demonstrates the feasibility withthe case of the auditing of one government audit authority on economic responsibilityof a SOE. It summarizes specific practice method from this audit case and thus drawsrelated enlightenment.This paper, based on the economic responsibility audit practice of onegovernment audit authority to an enterprise leader, analyzes the approach and methodof government audit in using internal audit resources. First of all, it evaluates theinternal audit personnel level, internal audit agency independence, and internal auditdepartment work effect, and determines that internal audit resources can be used.Then, it follows the processes of audit program preparation and audit implementation,and more, analyzes the utilization of internal audit resources in this audit case, andsummarizes4utilization modes: first, the government audit authorities directly usethe internal audit outcome; second, the government audit authorities extend the cluesfound in internal audit; third, internal audit personnel coordinates government auditauthorities; fourth, government audit authorities directly transfer the internal auditpersonnel from other enterprises. This case is used to prove that government audit utilization of internal audit resources is feasible, and the specific implementationroutes found in this case are also of certain significance to the practice of governmentaudit authorities.