Performance Auditing On Those Projects Invested By Government In China

In1998, Asian financial crisis broke out, our government began to implement the proactive fiscal policy by increasing the fiscal deficit, issuing long-term treasury bonds for construction, expanding domestic demand and other means to respond to the pressures of economic growth that caused by the crisis. Since then, government investment has been increasing. it has become the backbone of China’s economic growth. Our country has taken various measures to adjust economic structure, expand domestic demand, increase the share of consumption in GDP, but our investment boom will not fade in the next few years,investment will still be the pillar of economic growth,However, with the rapid growth of government investment, the exposures of problems in government-Invested projects field is also increasing. The economic benefits, social benefits, environmental benefits of the projects can not meet expectations. In order to regulate the government’s behavior in project investing and financing, deeply analyze the existing problems in the system, improve the efficiency of government investment, strengthen the public supervision of government projects, relieve public accountability, the audit institutions started a pilot implementation of performance auditing. The special performance auditing on the rural power grid renovation project organized by national audit office in2001is the symbol. After more than ten years of development, our country performance auditing on projects invested by government has entered the stage of comprehensive advancement. Although our performance auditing on projects invested by government has made some achievements, the current audit activities still exist some problems to be solved, limiting its full functionality. The paper adopts normative research method, it discuss the basic theories of performance auditing on projects invested by government, analysis the current situation, the existing problems, and the reasons behind the problems, propose the countermeasures to solve the problems.This paper consists of six parts, the contents of each part are as follows:Part one introduces the background and the significance of this paper, domestic and international literature review, research ideas, the research methods of this paper, and briefly describes the basic framework of this paper.Part two starts from the concept of performance auditing on projects invested by government, through comparative analysis the definition of the performance audit in America, Britain, Sweden, Canada, INTOSAI, defines the connotation of performance audit, Combined with China’s " Audit Law Implementation Regulations " of the provisions of the projects invested by governments, defines the connotation of performance auditing on projects invested by government. Then according to the process of projects invested by governments, divides it into three stages, including investment decision-making phase, construction stage, completion and operation management stage, introduces the contents of performance auditing on projects invested by government t, and its features are also briefly introduced in this paper. Finally, it introduces the basic theory of performance audit of projects invested by governments, including public accountability theory, externality theory, the theory of sustainable development.Part three introduces the current situation of our country’s performance auditing on projects invested by government from aspects of the development process, existing laws and regulations, the current model. Then it points out the existing problems which include inadequate prior audits, audit work is restricted, emphasis on evaluation of the economic benefits in the audit work, the audit techniques behind, problems repeated investigations repeat offenders. Then conducts an analysis of causes of problems, the main causes of the problem are law regulations are not perfect, the current audit supervisory system is not perfect, the auditor’s lack of competence, lack of a proper evaluation system, results-oriented auditing mode restrictions.Part four provides a brief description of the United States Government performance audit development process, introduces the characteristics of performance audit in the audit system, strategies planning, laws and regulations, audit staff, and reveals its enlightenments on performance auditing on projects invested by government. The enlightenments are:public participation can contribute to the development of performance audit, a perfect regulatory system provides a basis for working, independence and openness of audit institutions can strengthen its supervisory, the quality and the structure of audit staff direct impact on the quality of the audit, the change of strategic concept broaden a macro view of the auditor.Part five puts forward the suggestions of perfecting our country’s performance auditing on projects invested by government. Our country can improve our performance auditing on projects invested by government from the following five aspects:clarify the legal status of performance audit and build standards and guide system of performance auditing on projects invested by government to accelerate the legal construction, guarantee the independence of audit organization and perfect the results announcement system of performance auditing on projects invested by government in order to perfect our audit supervision system, optimize the knowledge structure of the audit team and establish the experts database of performance auditing on projects invested by government to strengthen the construction of performance audit talents team, perfect our country projects invested by governments performance evaluation system, implement the process-oriented audit mode and actively explore the risk-oriented audit model.Part six summaries the full thesis.