The Effectiveness Of The Government Purchasing Social Audit Service

Under the existing administrative system in our country,the national public resources audit is dominated by the government audit.However,due to the combination of supervision scope,ability level and personnel strength,government auditing is not satisfactory in terms of scope and frequency of auditing,and the performance and effectiveness of internal auditing in public sector,which is the auxiliary power of government audit,is also insufficient.In view of the problems of current public sector financial management,such as the basis accounting is relatively weak,the internal control is not perfect,the project fund management is not standardized.Government procurement of social audit services in the public sector will introduce certified public accountants audit,which become One of the effective measures to solve the confusion of financial management in the public sector at this stage.In order to adapt to the new macroeconomic background,government departments have begun to focus on improving the public domain comprehensive monitoring system.The Third and Fourth Plenary Session of the 18 th CPC Central Committee,the Fourth Plenary Session of the National Financial Work Conference have proposed to increase social management innovation,and vigorously promote the government to buy social organization services.These meetings provide new opportunities for CPAs to serve medical institutions and improve the governance structure of colleges and universities.Followed by the promulgation of the Hospital Financial System,Hospital Accounting System,Guidelines for the audit of the financial statements of the hospital and Higher Education Financial Statement Audit Guidelines which provide guidance for the CPA on the audit of financial statements.As a response to the spirit of the 18 th Congress,the provinces have been promoting the pilot work of the public sector financial statements,especially in Shanghai and Beijing,where there is no shortage of followers to follow the trend.How has the effectiveness of the implementation of the financial statements since the public sector been audited? Is it feasible for the government to purchase social audit services? This paper will study the effect of government purchase of social audit services and take the audit of financial statements of medical institutions as an example.The theoretical part firstly analyzes the development path of Chinese government purchasing social service from the perspective of institutional change.And then based on the new public management theory this paper analyzes the motivations of public sector government audit outsourcing.Based on the principal-agent theory,the author analyzes the principal-agent relationship between social,public,government and accounting firm.Meanwhile,the author analyzes the synergistic governance effect of the audit supervision mechanism in the public domain.Finally,from the feasibility and effectiveness perspective,the paper make theory to medical institutions' financial audit.The empirical part firstly puts forward the hypotheses about the validity of the financial statements audit of medical institutions according to the above literature review and theoretical analysis,and constructs the regression model.Questionnaires and field investigations were conducted to investigate the implementation of the CPA audit system for medical institutions within Zhejiang Province.Meanwhile,questionnaires were used to survey experts,academics,government officials,certified public accountants and relevant personnel of medical institutions across the country.To understand the respondents to the implementation of CPA audit policy,and then construct the model for empirical testing.The results of this paper are as follows:(1)The auditing of financial statements has an inhibitory effect on the misconduct of the assets of the hospital,the low efficiency of investment and the irregularity of the financial accounting system.(2)Auditing the financial statements can significantly improve the accounting information Accuracy and standardization,financial transparency and efficiency,standardize management and prevent corruption and other aspects of governance performance.(3)The accuracy and standardization of accounting information,the promotion of financial transparency and efficiency,the normalization of management and the prevention of corruption have significant negative effects on misconduct,which indicates that the audit of financial statements has improved the governance performance of medical institutions will also play a role in restraining improper behavior.(4)The establishment of the internal audit department has a negative impact on the misconduct,but not significant,indicating that the establishment of the internal audit department in the medical institutions have an inhibitory effect of misconduct,but the effect is not significant.The policy and practice of this paper are as follows:(1)The government supervision should actively improve the CPA audit system of public sector,and provide strong legal support for the auditing supervision of the certified public accountant.(2)In line with the institutionalization of CPA auditing in the public sector,the CPA organization should put forward the corresponding implementation plan for the CPA auditing standards,criteria,selection and payment mechanism for public sector CPAs.(3)Public organizations which represented by medical institutions and institutions of higher learning,should strengthen their efforts to rectify the problems in asset management,building up their concepts,and should make full use of CPA audit to enhance the level of corporate governance.