The Study Of Effect And Countermeasures Of Government Audit’s Handling And Punishment

Government audit refers to audit supervision of financial revenues andexpenditures of various departments of State Council, local people’s governmentsand various departments thereof on all levels, state-owned financial organizations,enterprises and institutions as well as other fiscal and financial revenues andexpenditures to be audited as stipulated by the law, which will be carried out bynational audit organs according to national laws. Having been implemented for30years, government audit has developed from regularity audit to combination ofregularity audit and performance audit and has been expanded from pure audit offiscal and financial revenues and expenditures of audit objects to audit of economicresponsibilities of leaders and cadres, audit of implementation of major nationalstrategies, audit of resources and environment and other fields. In spite of evolution incontents, manners and methods of audit, government audit is still an important part innational governance and ultimately aims at realizing prevention, revealing anddefense functions of an audit “immune system”. The paper specifically divideshandling and punishment effect of government audit into deterrence effect andcontagion effect. Government audit can really give its play to deterrence effect andavoid contagion effect only when an audited organization can make timely and properrectification and audit problems of the same type will not occur again in other relevantdepartments in the future after an audit organ executes handing and punishmentdecisions to the audited organization and publishes relevant audit suggestions.With criminology theories as the reference, the paper assumes that, after illegalbehaviors of an audited organization are found, government audit may generatedeterrence effect and contagion effect to post-stage behaviors of the auditedorganization by carrying out handling and punishment to the audited organization.The paper then puts forward a theoretical frame about handling and punishment effectof government audit. Based on this, the paper conducts data analysis by referring todata in local audit organs from2002to2010as shown in audit yearbooks and data onstatistical bureau websites in corresponding years. It is shown in analysis results thatsubmission of fiscal execution rates exerted prominent deterrence effect on post-stageillegal behaviors of audited organizations while various audit execution rates in thesame year also had deterrence effect on corresponding post-stage execution rates.Aiming at the found problems, the paper comes up with5suggestions: adhering tolawful audit, laying equal stress on audit handling and punishment, establishing a rectification implementation mechanism, perfecting a budgeting system andperfecting an audit disclosure system.