Research On Economic Responsibility Audit Of Leaders In Local Government Departments

Principal-Agent theory tells us that there exists inconsistency between the interests of the agents and the principals. For their own interests, agents may have behavior such as adverse selection and moral hazard. For government agencies, that means the party and government leaders may have used his rights to seek personal gain, made poor management of state-owned assets, and even exchang their right into personal interests with the other person, and other issues.Economic responsibility audit, developing together with the reforms of national economic and political system, is a job, with Chinese characteristics, adapted to the need of the administrative party's supervising and managing the leader and the cadre. The publish of two temporary provisions show economic responsibility audit has been formally incorporated into the government audit. Since then, economic responsibility audit has been developing towards standardized and legalization.Economic responsibility audit is playing a significant role in strengthening the cadres' management and supervision, boosting leaders'probity and self-discipline as well as correctly performing responsibilities, preventing and controlling corruption from the root and in the case of system, accelerating administration and advancing the management of state affairs according to law, establishing administrative party's good image, building up cohesion and centripetal force and so on.Different kinds of leaders have different economic responsibility,so the auditcontent is different,too. Now, the research of economic responsibility audit are mainly about the problems which appeared and exsit in the practice and the solution to this problems,and establishing evaluation index system to different kinds of leaders. But there are little research directly about the economic responsibility auditing of leaders in local government departments.This article is trying to do some research of this kind of economic responsibility audit. This article mainly discussed the theoretical and practical problems in the economic responsibility auditing of leaders in local government departments, such as,the defination of economic responsibility,the content of internal control appraisal. Based on the above,trying to build a multi-level and systemic evaluation index system and a synthetical evaluation methods which adapts to this kind of leader. This paper adopts the theoretical research and the case analysis.This thesis is consists of six parts: Part one is the introduction, which is mainly about the background of choosing such a topic, realistic meaning, literature reviews, and the whole research frame and mentality. The second part is the elementary theory of economic responsibility audit of leaders in local government departments. We analyze the concept, the characteristics and the category. We also defined the extent of the economic responsibility audit of leaders in local government departments. The third part discussed the content of internal controls in economic responsibility audit. The fourth part is mainly about the evaluation. We analyze the purpose and the principles in evaluation.We build a multi-level and systemic evaluation index system and a synthetical evaluation method which adapts to this kind of leader. In the fifth part, We listed and analyzed a case, and given suggestions for improvement based the index system and the evaluation method.And in the last part,the author described the research findings and the inadequats in this article.As mentioned above, the research has acquired some achievements,but there still exists some inadequate because the limitation of time and the author' experience, which are needed further reserchs to improve.