A Study On The Governmental Auditing Thoughts Of Republic Of China Based On The Perspective Of Democracy And Government By Law

In Minkuo Period the governmental auditing thoughts were influenced by modern thoughts of democracy and government by law in the west. The purpose of studying governmental auditing thoughts of republic of china from the perspective of democracy and government by law is to explore the main characteristics of governmental auditing thoughts, to study the relations between democracy-and-government-by-law and governmental auditing thoughts, which will not only enrich the study of evolution of auditing thoughts, but also give an reference for contemporary governmental auditing reform.Governmental auditing thoughts of republic of china mainly consisted of auditing legislation thoughts, integration of supervision and audit thoughts, army auditing thoughts, auditing meeting thoughts and auditing of announcement thoughts.Auditing legislation thoughts were mainly composed of auditing clauses regulated in the state institution, several auditing powers stipulated in legislation and auditors' positions and auditing meetings written into legislation. The tripartite rights and obligations in the auditing contract were set down in auditing legislation, which enhanced authority and seriousness of contract, contributed to execution of auditing contract, and promoted the realization of auditing democracy. Several auditing powers stipulated in legislation embodied the restriction on governmental power. Auditors' positions written into legislation could cut down the asymmetric information between the people and auditors, and could ease adverse selection and moral hazard, which resulted in reduction of agency costs, namely, democratic costs. Auditing legislation thoughts'reference to contemporary auditing legislation can be summarized as follows: Firstly, auditing clauses should be added in the state institution such as reporting times, reporting relations and auditor's position. Secondly, audit power and relevant department leaders'joint liabilities should be written into the Audit Law. Lastly, Auditor's qualifications should also be added to the provisions in the Audit Law.Integration of supervision and audit thoughts were mainly embodied in institutions settings, power configuration, affairs management, supervision power execution mode, coordination relations and reporting relations. Integration of supervision and audit could reduce democratic costs, which included setting supervision costs and exercising ones. Path dependency of the ancient times of our country could contribute to the reduction of setting costs. Integration of supervision and audit reducing the exercising costs mainly resulted from the following aspects:Supervision power execution mode could cut down the cost of exercising concrete operations; Institutions settings could reduce the coordination cost and Reporting relations could reduce the reporting costs. Integration of supervision and audit could increase the efficiency of democracy and government by law. Institutions settings could reinforce their cooperation and improve their efficiency and effect. Power configuration could fulfill auditing examination power and treatment ones. Integration of supervision and audit enabled supervision organizations to acquire the due and complete information, to supervise the trustees timely and effectively, which could help reducing the agency cost. Its reference to the present age could be that the number of control organ should be appropriately reduced, and that The Ministry of Supervision and National Audit Office should be combined into one unit.Army auditing thoughts of Republic of China were composed of army auditing independence being higher, combination of pre-auditing, post auditing and inspecting and carrying on economic responsibility audit. Army auditing independence embodied that democracy restricted autocracy, pre-auditing could contribute to the realization of budget democracy. Post-auditing was budget enforcement auditing. Inspecting could improve the effect, efficiency and validity. Economic responsibility audit could help strengthening supervision to power in the army. Its reference to the present age is that organizational independence of army auditing should be improved and that pre-auditing and inspecting should be strengthened.Governmental auditing meeting thoughts of Republic of China consisted of subjects of auditing meeting, procedures of auditing meeting and results of auditing meeting. Subjects of auditing meeting included the alteration of auditing law and auditing management system, examination and rewards and penalties of auditor, assignment of key auditor and important auditing service. Procedures of auditing meeting included preparation, time, present members, an majority principle, a circumvention, a hearing, acting chairman and external supervision. Results of auditing meeting included consequence review, case establishment and the results opening. Subjects of auditing meeting embodied the democratic principle abided by auditing management activity and auditing service, meanwhile, external supervision and results opening embodied external supervision. These contributed to realization of audit entity democracy. Procedures of auditing meeting embodied a quorum principle, an majority, a circumvention, a hearing, an efficiency, and external supervision, meanwhile, results of auditing meeting embodied combination of common fare and special ones and procedure opening, they commonly embodied audit procedure democracy. Auditing meeting had dual impacts on the costs of democracy and government by law. The costs of auditing meeting were the costs of democracy and government by law, but, auditing meeting could reduce the costs of democracy and government by law in various ways. Its reference to the present age is that important auditing affairs should be up to auditing meeting, the concrete procedure of auditing meeting should be improved and the contents of auditing meeting should be opened.Governmental auditing of announcement thoughts of Republic of China were composed of announcing in due time, announcing extensively and announcing transparently. The first expressed that each month' auditing results would be announced next month. The second expressed that many types of auditee were announced and auditing organs contents were announced extensively. The third expressed that announcements were transparently, which included that auditing results were announced concretely, combination of procedure and results were announced and implementation of auditing results were also done. Auditing announcement could better protect people's democratic rights, and could play a role in public opinion supervision, which could bring more pressure to auditee, and would safeguard law sanctity. Auditing announcement would promote the auditing organs to raise auditing quality, and would further the conduct of auditing organs according to law, which would promote the development of auditing the governmental conducts according to law. The timeliness and extensiveness and transparency of auditing announcement could reduce the agency costs which resulted from the asymmetry information between the people and the government, and could increase the costs of reputation of the auditee, call government at different levels to abide by law, as a result, the costs of auditing inspection and punishment would be lowered. Auditing announcement reference to the present age is that the timeliness of announcement should be improved, the ranges of announcement should be enlarged and the transparency of announcement should be enhanced.The methods of this thesis could be summarized as follows:Firstly, the method of combination of history and logics, namely, the logic analysis on governmental auditing thoughts of republic of china were based on examination of the course of auditing activity and auditing incidents; Secondly, systematic methods, namely, governmental auditingthoughts were considered as a system, to study the relations between thoughts and external surroundings and their internal ones; Thirdly, the combination of several subjects such as philosophies, politics and economics, for example, to study integration of supervision and audit thoughts with agency theory, to integrate agency theory into politics and law, and to put forward the conceptions of democracy and government by law.The conclusions could be summarized as follows:Firstly, the five governmental auditing thoughts of republic of china were interrelated, inter-constrain and mutual promotion. Governmental auditing legislation thoughts would promote and guarantee the others, the others were concrete. Integration of supervision and audit thoughts and army auditing thoughts would reinforce the supervision on the fiscal funds from the external eagles, their common purpose were to intensify auditing as the tool of democracy and government by law. Governmental auditing meeting thoughts and governmental auditing of announcement thoughts would reinforce the supervision on auditing organs, their common purpose were to guarantee the conducts of auditing organs according to the principle of democracy and lawSecondly, the characteristics of governmental auditing thoughts of Republic of China were thoughts of democracy and government by law. In Minkuo period, the thoughts of democracy and government by law were embodied in the governmental auditing standards(mainly expressed in auditing legislation), the governmental auditing body(mainly expressed integration of supervision and audit), the governmental auditing objects(mainly expressed army auditing), the governmental auditing procedure(mainly expressed auditing meeting) and the governmental auditing results(mainly expressed auditing announcement). The five governmental auditing thoughts embodied the thoughts of democracy and government by law such as power restraint, auditing entity democracy and auditing procedure democracy, reducing the costs of democracy and government by law, increasing the efficiency and promoting the development of democracy and government by law. Therefore, the characteristics of governmental auditing thoughts of Republic of China were thoughts of democracy and government by lawThirdly, governmental auditing of modern times was the tool of democracy and government by law because that the characteristics of governmental auditing thoughts of republic of china were thoughts of democracy and government by law, that governmental auditing was considered as the tool, which was in accordance with governmental specialists and scholars at that time, that there existed the law base for looking on governmental auditing as the tool, and that there existed the base of the actual efficiency.Lastly, the enlightenment of governmental auditing thoughts to the contemporary era is that the functions of governmental auditing could not be divorced from the political surroundings of the special surroundings, and that the roles of contemporary governmental auditing should be taken better advantage in constructing the country founded on democracy and the rule of law.Points of innovations could be summarized as follows, firstly, the fresh slant are that the characteristics of governmental auditing thoughts of republic of china were thoughts of democracy and government by law and that governmental auditing of modern times was the tool of democracy and government by law, secondly, the new angle, namely, the angle of democracy and government by law, thirdly, the new materials, namely, materials were extended compared with the study done, lastly, combination with the present age, in other words, to further study its reference to contemporary auditing reform based on the analysis on the governmental auditing thoughts of republic of china.