Case Study Of Follow-Up Audit On The Implementation Of Tax And Fee Reduction Policies In X Province

Due to the low growth rate of global economy and many uncertainties at the present stage,the development of Chinese enterprises have been affected.However,China’s economy is in the transformation phase.In order to ensure the long-term stable and strategic development of economy,Chinese government has formulated many tax and fee reduction policies.In 2019,the government unswervingly adheres to the tax and fee reduction policies with increasing the degree of tax preference.The purpose of formulating inclusive policies is to promote multi-sided development of enterprises,implement supply-side structural reform,lighten the burden on market to promote its healthy development,build a favorable policy and business environment for the development of entity enterprises,improve the policy framework and system from the central to the local,and enhance the policy capacity in the specific regional economy to promote the high-quality and high-speed development of regional economy.In March 2018,the Audit Commission of the CPC Central Committee was established,which represented a milestone in China’s audit work and indicated the great significance of the audit work.At the end of August of the same year,the National Audit Office of the People’s Republic of China stipulated that: the follow-up audit on the implementation of tax and fee reduction policies would be implemented by organizing the national audit department.The Audit Commission of the CPC Central Committee formulated“the 12 th Five-Year Plan” and first proposed the follow-up audit on the implementation of the policies,with clarifying that the audit policy has been involved in the scope of national audit as an independent audit service,and defining the scope of responsibility.Since 2015,the "tax and fee reduction" has been repeatedly mentioned at the government work meeting.Since2016,the "tax and fee reduction" has been the focus of the government work report every year.At government work meeting in 2019,increasing the degree of tax and fee reduction was pointed out.General Secretary Xi Jinping has repeatedly stated that we need to promote the development of high-quality businesses,increase the implementation of tax and fee reduction policies,and consolidate and expand the effect of tax and fee reduction.On this background,it is of great significance to study the implementation effect on tax and fee reduction.As an emerging audit type,follow-up audit has its unique application scope compared with traditional audit.Audit work runs through the whole process of policy implementation,thus the audit can be full covered during and after the work,with moving the audit forward,supervising the whole process of policy implementation,detecting and dealing with any problem to avoid the expansion of problem.With fully involved in the implementation of policies and auditing in practice,audit can help possess the information and get a comprehensive overall understanding of policies,so as to clearly find out the problems,accurately and efficiently identify risks,put forward feasibility planning,and urge the audited unit to rectify and optimize in time.Therefore,it is necessary to conduct follow-up audit on the implementation of the policy.The policy of tax and fee reduction is a new national policy in China,and it is of great significance to carry out follow-up audit on its implementation.However,we should also pay attention that the policy of tax and fee reduction has just been implemented,and the follow-up audit of policy implementation is also in its infancy,with limited reference from theory and practice.Under the circumstances,the thesis selects the“follow-up audit on the implementation of tax and fee reduction policies in X province” as the object of study,combined with the real situations and in-depth familiarity with front line,to conduct fully understand and objectively summarize,point out the problems in the process of auditing,explore the causes and suit the remedy to the case,and put forward improvement suggestions,so as to provide some reference for the follow-up audit on the implementation of tax and fee reduction policies.There are six parts in the thesis.The first part is the introduction,which briefly explains the research background and significance of the thesis,including the summary of relevant literature at home and abroad,and introducing the written ideas,methods and structural framework of the thesis.The second part is the theory overview of the follow-up audit on the implementation of tax and fee reduction policies.With beginning from the concept of follow-up audit,the thesis introduces in detail about the content,methods,characteristics and objectives of the follow-up audit on the implementation of tax and fee reduction policies.The theoretical basis of the thesis includes national governance theory,policy cycle theory and fiduciary responsibility theory.The third part is the general situation and problems of the follow-up audit on the implementation of tax and fee reduction policies in X province.This part firstly introduces the basic economic conditions and the implementation of tax and fee reduction policies in X province.Secondly,it describes the working steps and working methods of the follow-up audit on the implementation of tax reduction and fee reduction policies in X province.Finally,it summarizes the existing problems about the follow-up audit on the implementation of tax and fee reduction policies in X province.Of which,there are four problems has been summarized: failure to implement the audit in time;overdue feedback of requirements and evidence collection from covered investigated enterprises;the misjudgement the auditor made on the evidence conclusion of the policy was not implemented;and the waste of resources caused by deviation in the data retrieval template.The fourth part is the analysis of the causes for the problems existing in the follow-up audit on the implementation of tax and fee reduction policies in X province.The causes of the problems has been analyzed based on the perspective of governance theory,policy cycle theory and fiduciary responsibility theory,and an in-depth analysis has been made from four aspects: the lag of intervention time-point during follow-up audit;the limited power and methods of follow-up audit;the limited capacity of follow-up auditors;and the low efficiency of follow-up audit data analysis.The fifth part includes the suggestions about improving the follow-up audit on the implementation of tax and fee reduction policies.According to the existing problems and reasons,suggestions are put forward from four aspects in the thesis:accelerating the reform of the audit system to expand the audit effectiveness;strengthening the audit function to expand the audit coverage;strengthening the tax audit capacity of the audit department;leveraging the advantages of big data to enhance technological innovation;and improving the ability of technological innovation.The sixth part is the conclusion,which generally summarizes the full text.