Term-end Accountability Audit Toward State-owned Enterprises In Continued Loss

Term-end accountability audit is a special task designed to audit the enterprises' financial situation and evaluate the managers' performance during his/her post,which is also a great tool to promote cadres to perform their duties efficiently,legally and fairly and helps to improve the level of management.After the 18 th National Congress of the Communist Party of China,the economic reforms enter into a new normal period with the characteristics of low-speed growth after over 30 years rapid development.Meanwhile thetransformation and upgrading of industry have become a long-term journey of our country.Faced with the tremendous reforms of state-owned enterprises,the state-owned zombie companies attract public'sattention recently because they live on subsidiaries and loans from the government,which is a great obstacle on our way to sustainable development.Therefore,it is urgent to enforce the term-end accountability audit to ensure that state-owned enterprises can develop sustainably and healthily.With the combination of accounting,auditing and management,this dissertation sorts the related literature first and then analyses its financial reports and put forward some suggestions pertaining to future development of Longfeng.Firstly,the author introduces basic theory,definition and characteristics about term-end accountability audit.Secondly,this dissertation starts with background materials of Longfeng and paper-making industry and then depictsthe method and strategy used to auditLongfeng Paper Ltd.including the tests of internal control.Thirdly,with the approach from general to specific,the authoranalyses how the manager performed his duties according to the following three aspects: production and operation goal,financial effect analysis and analysis about performance of duties;which will help the public to learn the situations faced with zombie enterprises and study new methods for further auditing.Finally,this dissertation put forward some constructive suggestions based on the problems found in this audit.This dissertation analyzes the financial standing of PuyangLongfeng Paper Ltd.and inspects how the manager performed his duties during the past three years according to following three aspects: production and operation goal,financial effect analysis and analysis about performance of duties.Then the author put forward the idea that sustainable development should be the key to evaluate the manager's performance in these Zombie companies.The analysis of sustainable development should be based on the financial analysis and verticalcomparison of net cash flow generated from operating activities.As far as the manager in zombie enterprises is concerned,his performance should be focused on improving the ability of sustainable development,which is the only way to survive in fierce market for zombie enterprises..