Research On The Issues Of Performance Auditing On Chinese Public Investment Projects

With the development of economy, the emphasis of governmental investment has turned to the sphere of public engineering, which has effectively pulled the increase of economy. Meanwhile, some un-neglected problems have also exposed, such as un-ideal investment performance, serious loss and waste, low level reconstruction etc. Facing these situations, the audit agencies need to audit not only the illegal and irregular behaviors but also the efficient and effective in making use of the construction funds, that is to conduct performance audit on public engineering investment.The paper employ both quantitative and qualitative methods, supported by outer effect theory and effective supplying theory, illustrates the necessity and possibility to introduce public engineering investment project (PEIP) audit in China, and repositions the objective of performance audit on PEIP, and proposes the two-tier objective of performance audit on PEIP, based on which the paper constructs the evaluation index system of performance audit on PEIP. Various factors that influence performance evaluation of PEIP, as well as successful experiences from abroad are also considered. Empirical analysis is conducted by using the data of performance audit from Luofang Waste Water Treatment Plant, and the suitability of the performance evaluation index system is positively verified. In view of existed situation of Chinese performance audit on PEIP, the paper analyzes the problems faced in the application of performance evaluation index system, as well as their deeply reasons, finally proposes the assurance strategies in implementing performance evaluation index system of PEIP.Different from economic benefit audit on general construction project, performance audit on PEIP pays more attention on social benefit, the effect evaluation should be more comprehensive and pay attention to social benefit and environment benefit with the precondition of economic benefit. This new idea and method of audit should be applied in the effect evaluation on PEP in the future audit theoretical research and practice.