Governmental Accounting Reform,Governmental Audit Perfection And Governmental Governance Efficiency

With the rise of the new international public management movement, the world’s major developed countries have reshaped the public administration for the purpose of improving performance of governance efficiency. The most important part of this reform is the governmental accounting reform with the core of the accrual basis reform. Chinese government officially launched the accounting reform in2000, but the reform has been stalled. In recent years, the sovereign debt crisis and the local government domestic debt risk continue to strengthen, which prompted our governmental accounting reform and the governance efficiency by exploring the feasibility of governmental accounting reform upgrade path. Based on the theory of public accountability, the paper explored the relations among governmental audit, governmental accounting reform and governance efficiency hoping to test the governance function of accounting reform and the influence of governmental audit systems to this function. The paper reviews the theory and then builds the theoretical framework of the relations, which emphasized the influence of the government audit. On that basis, the paper selects section data of59countries in2007and2012to establish the multiple regression models with interaction terms to empirically test the governance function of government accounting and the governmental audit systems’ influence to this function. The empirical results show that the governmental accounting reform with the core of accrual basis has a positive impact on performance improvement and with the upgrading of governmental audit’s sophistication this positive effect will be strengthened. Meanwhile, the differences of the governance efficiency improvement by the choice of a governmental accounting basis will gradually enhanced with the upgrade of the governmental audit system. Thus, the paper proposes the policy recommendations from reform degree, power factor and the collaborative development of governmental audit and governmental accounting.