The Role Of State Audit In Promoting The Governance Of State Owned Pharmaceutical Enterprises

The pharmaceutical industry is a cornerstone of economic and social progress,as well as national health.State-owned enterprises have a unique identity and standing in the Chinese economy,and should take on the duty of guiding China’s economic and social progress,as well as more social obligations.As of December 31,2021,there were 1317 state-owned holding listed companies with a total market value of 33.54 trillion yuan,making them a key driving force for China’s economic operation and development.There are 331state-owned enterprises with pharmaceutical business as their main business.China’s pharmaceutical industry has been greatly advanced by the state-owned pharmaceutical enterprises,which have safeguarded national health and advanced the development of the sector;however,there are also numerous issues.It is very important to strengthen supervision over state-owned pharmaceutical enterprises and promote corporate governance.An examination of the audit governance theory,both domestically and internationally,is conducted in this article to evaluate the efficacy of national audit in fostering the administration of state-owned businesses and safeguarding state-owned assets.We will analyze the acceptance of national audit supervision by pharmaceutical state-owned enterprises and the monitoring results achieved by sorting out the contents of the National Audit Office’s audit results announcement on state-owned pharmaceutical enterprises in2018,based on China’s relevant audit regulations and materials.A scrutiny of the three main facets of financial management,accounting,business management,and the execution of the eight central regulations and the regulations on honest and clean employment reveals that China’s audit and supervision institutions mainly have an effect on these three aspects.This paper delves deeper into the oversight and governance of state audit on state-owned enterprises,exemplified by Company A.The national audit’s intervention in the pharmaceutical industry has revealed its supervision function on the development of state-owned enterprises,as revealed by the analysis of the issues it has revealed.An examination of the direct effect on the case enterprises,the five major financial indicators related to capabilities,and the alterations in financial data that mirror the pharmaceutical industry’s features leads to the conclusion that the national audit has a regulatory and preventive role.In terms of rectification,it is mainly through internal control audit and financial statement audit to identify problems and urge enterprises to rectify them;In terms of prevention,it is mainly reflected in improving the quality of accounting information and influencing the management’s business philosophy.The following research conclusions are drawn from the discussion: National audit can enhance business performance,enhance corporate governance,and diminish on-the-job corruption among corporate executives.This article proposes the following proposals: National audit should broaden its scope of audit content,bolster the oversight and direction of internal audit of state-owned entities.audit,strengthen the rectification,implementation,tracking,and coordinated inspection and supervision of audit findings,increase the crackdown on violations in state-owned enterprises,and effectively promote the governance of state-owned pharmaceutical enterprises.