China’s Local Government Performance Audit Risk Research

Due to China’s construction of democracy and legal system and the socialist market economic system continuously establish and perfect, the traditional way and purpose of government audit can’t meet the increasing requirements of national governance. In this condition, the government performance audit must be operate. Since 2003, the national audit office to accelerate the process of advancing the government performance audit, step by step to strengthen the audit of local government, and local government audit institutions shall actively carry out the practice and research of performance audit, and obtained a certain effect. But how to deal with during the implementation of the performance audit of the audit risk, the problem is still a local audit institutions have to face. And less on the study of government performance audit risk theory, starting from the practical study of local audit institutions performance audit risk more lack. Therefore, through the systematic analysis of every link of performance audit of local audit institutions in the implementation of controllable risk, and puts forward some prevention and control against these risks combined with the practical experience of counter-measures, hope for the future of performance audit practice and theoretical research to provide certain reference value.This article is divided into four chapters, the first chapter is introduction, mainly from the new period of audit institutions in the booming of local government performance audit activities, put forward in this paper, the research background, research significance, the second chapter firstly introduces the government performance audit, and the concept of government performance audit risk, and starting from the characteristics of local audit institutions, the local audit institutions performance audit risk from the emergence of risk, risk based on classify, risk control, etc, this paper expounds the domestic and foreign research situation of performance audit risk theory. Second, analyzed the United States, Britain, Australia, the government performance audit implementation of advanced countries, measures of performance audit risk, and which can draw lessons from the measures were analyzed and summarized in this paper. Finally, mainly for local audit institutions will appear in the process of performance audit risks are analyzed, and the audit project phase, pre-trial investigation and audit implementation stage, audit reports and corrective stage, to the relevant authorities and public announcement, and other risks existed in the implementation stage. Third chapter to a local audit institutions of a performance audit project as an example, detailed elaborated on performance audit risk control, how to determine the project, how to carry out risk assessment and seek counter-measures, as well as how to improve the feasibility of the audit corrective risk control. Chapter iv prevention and control measures combined with the domestic and foreign government performance audit, as well as the practice of the summary of the audit risk prevention and control measures, systemic in audit risk prevention and control of each link of the method is proposed and the performance audit risk prevention and control measures were put forward from a new Angle. Finally summarizes and as a whole from the Angle of quantitative and deepening details two Suggestions for the future research direction.The main innovation of this paper lies in three aspects:First, systematic analysis the performance audit risk and its prevention and control measures in the audit process; the second is presenting the controllable risks for the majority of local audit on performance audit, with more strong practical significance; the third is suggesting risk control methods in a different angles of traditional research based on the practice.