A Study On Finance Audit Function And Implementation Mechanism

In the twenty-first century, the maintenance of national security is the primary objective of all countries. Economic security is the core of national security. The maintenance of economic security is the primary responsibility of governments. Since the "audit is the mmune system of health running for national economic and society" has been proposed, many scholars discuss the nature, goals and functions of audit. According to "development planning of audit from 2008 to 2012" developed by the Audit Commission, to safeguard national economic security is the main task of the audit.Finance is the core of modern economy, maintaining financial security is the core to safeguard the economic security. Safeguard the financial security should be the primary objective of financial audit. This redefinition of the functions to the financial audit should be to control financial risks. According to financial theory of financial risks, financial security and financial crisis in relations theory, only the financial risk is controlled within a certain range, can ensure financial security of the state, and then to weather the financial crisis. Some scholars have discussed the functions of the audit for economic control, referred to as "audit control theory."The author proposes the audit function definition of financial audit is to control financial risk, in order to realize the maintenance of the financial stability and prevent financial crisis and to promot the financial development. The goal of financial audit really becomes the "the immune system" for the smooth running of the financial system, In order to scientifically demonstrated the functions and mechanisms for financial audit to control financial risk, the contents is divided into eight chapter.The first chapter is the introduction. Major topics include the research background, the purpose and significance of the study, review, and structure and research methods.Chapter 2 firstly gives the theoretical framework of financial audit, including the basic concepts of financial audit and the conceptual framework of financial audit. Then the author discusses the development and the present of the U.S. financial audit and Chinese financial audit. First discussing the basic concepts related to financial audit, including the definition of financial audit. Financial audit should not rigidly adhere to national financial audit. Macro view of the financial audit should be established. Pointing out that the main body of the financial audit should include national audit institutions, private auditors, and internal audit of the financial system. Audit object should be all financial institutions. Not only the central bank and the financial regulators, also all of the micro-finance institutions are included. The author proposes a conceptual framework for financial audit. Then we analyz the status of the U.S. financial audit and the Chinese financial audit, summarize the development process of our financial audits. We raise the status of the current financial audit.Chapter 3 is a further discussion of the financial audit function. We point out that the financial risk control function of the financial audit in accordance with the development trend of the audit. The financial risk control function of financial audit meets the traditional theory of finance. The financial risk control function of financial audit needs to be analysised from two latitudes. First, the nature of the audit were summarized, which has experienced the essence of audit, monitoring of economic, economic cybernetics, etc., and then a detailed analysis of the audit of the "immune system" nature. Then the audit of the "immune system" are discussed, including three major functions of the "immune system" to prevent, expose and resist, and the relationship between the three functions are analyzed. The basic function of financial audit-the "immune" and the specific function-to control financial risk is consistent with the "immune system theory". Then we analyze the relationships between the financial risk, financial security and the financial crisis. We point out the financial audit function and financial audit target are in line with the the logic of traditional theory of financial risk, financial security and the financial crisis. We Conclud that the financial audit financial risk control functions from two latitudes to analyze, that is, the control of micro-and macro-financial risks..Chapter 4 is the realization mechanism of the financial audit about the financial risk control function. The author realize there are three proposed mechanisms, namely, building the financial macro-control performance evaluation mechanism, building the coordination regulatory mechanism of national audit agencies and financial regulators, building the financial risk management control mechanism of the micro-finance organizations,. First we propose to build the financial macro-control performance evaluation mechanism, to control the macro-financial risks; build the coordination regulatory mechanism of national audit agencies and financial regulators; build the financial risk management control mechanism of-the micro-finance organizations, to control the micro-finance risks.Chapter 5 mainly discusses the path of the performance evaluation mechanism for financial macro-control. According to the functions of the central bank, we put forward carrying out the performance audit and the duty audit for the central bank. First we introduce the meaning of the performance audit for the central bank, giving the targeting of the performance audit for the central bank, and then point out the content of performance audit for the central bank, and raise the index system of the performance audit for the central bank. Then we talk about the duty audit for the central bank, note the problems and difficulties of the duty audit for the central bank. We propose the measures to improve the duty audit.Chapter 6 mainly discusses the the construction of the path of the coordination regulatory mechanism between the national audit institution and the financial regulators, including the audit of the national audit institutions to the financial regulators and the national audit institution in collaboration with the financial regulators regulate the financial system together. First, we give an overview of the current situation on financial regulation, and then discusse the national audit agencies audit the financial regulators. The current national audit institutions audit the financial status of regulatory bodies, and the direction of development for national audit agencies audit the financial regulators. Then we discuss the national audit agencies and financial regulatory agencies, including the the relationship between the country's financial audit and financial supervision. And we build the country's financial audit of collaborative framework with the idea of financial regulation, and financial supervision in collaboration with the financial audit of specific measures.Chapter 7 discusses the main path of building the financial risk management control system to the micro-finance organizations. We take the commercial banks as the core chapters. In the content of the commercial bank audit, we mainly discuss the risk-based auditing in commercial bank risk management application. First we discuss the risk management of commercial banks, risk-based audit of the commercial banks, and then discuss the relations position between the risk-based audit of commercial banks and the risk management, proposed risk-based audit of commercial bank risk management, monitoring role, and finally discusses implementation of procedures of the risk-based audit for commercial banks and the specific application for risk-oriented audit risk management in commercial banks.Chapter 8 is summaring, putting forward the main innovation and limitations, and other related issues.The author makes some attempts and efforts the on the basis of the existing research, the improvement and innovation of this paper may be as follows:First, the article proposes the financial audit "immune system theory" on the basis of national audit "immune system theory", that is the financial audit should be the "immune system" of financial system. We present the basic function for financial audit is "immune" and specific function is controlling financial risks.Second, according to the calendar financial audit report of the Audit Commission, we analyze the:state financial audit "immune system theory", point out the existence related issues of the national financial audit.Third, this paper presents implementation mechanism of the financial audit "immune system theory", namely building the performance evaluation mechanisms of macro financial control, the coordination mechanisms between the national audit institutions and the financial regulatory agencies, and the financial risk monitoring mechanism to the micro-finance organizations, to achieve the "immune" feature of the financial audit. We also put forward three specific implementation mechanisms to achieve their own paths.