Research On The Measures To Improve The Audit System Of The Disaster Relief Funds And Materials

In May 12,2008 the most damaging earthquake have taken place with the largest affected areas since the founding of New China. This tragic disaster has roused donations across the country as well as from the whole world. We certainly hope such a huge amount of funds and materials could be managed effectively and be used rationally so as to save the people of the extreme misery of the disaster areas, as well as improve post-disaster reconstruction. However, by chance I saw a news which said 60% donator didn't know where the donations go.Being aware of the character of the disaster relieves,I think we should pay high attention to this problem and conduct in-depth study. Disaster relief funds and materials from the government budget, social groups, private donations and international aid have extensive and significant social impact. The adequacy of supervision of relief funds and materials, directly affects-the credibility of the government and social stability as well as the international image of our country.Besides,China is one of the disaster-prone countries.This makes another reason.And as I have been assisting my tutor doing research on auditing,so I bring out the idea that I want to write about the audit of disaster relieves.At present, the study on the audit of disaster relief funds and materials in domestic is still in its infancy. The research on the audit of disaster-relief funds and materials research began in the late nineties of the twentieth century century, from the 1994-2007 years, in the main audit journal articles the number of published articles is almost less than three, until the 5.12 earthquake in Wenchuan there is a brief peak of study, the number of articles published is more than the sum of years before. While in 2009, the relevant research has decreased sharply. Specific to the research content, it is main about the summary of real-world experience and overview of the meeting and reports, which accounts 35.71% and 45.71% separately, the total ratio of the two reaches 81.42% total. From the view of Author, they are mainly concentrated in the audit institutions and colleges and universities and research institutes and Audit Institution participate less. Overall, studies on the audit of relief funds and materials have not attracted sufficient attention. The brief study craze happens only after the major disaster and the research content is rather limited.There is lack of theoretical research and it is far from systematical. If we say that the study on the audit of the disaster relief funds and materials has just began, then the study on the audit system of the disaster relief funds and materials is rare.In particular, putting the" immune system" theory into the current audit system of the disaster relief funds and materials is even more unprecedented. This paper is divided into three parts:The first part is also the chapterⅠ, Introduction. It includes research background, research purposes, research significance, research ideas as well as research methods and literature review. Literature review is divided into foreign and domestic. For the foreign literature, I has mainly selected new and meaningful research results of INTOSAI, GAO, Japan and so on.For domestic literature,I mainly sorted them from the number of research results, periodicals distribution, year of distribution, content, authors in terms of types.The second part is the main part of the article, including the chapterⅡand chapterⅢ.In chapterⅡ, firstly the article described the current audit system of the relief funds and materials from the aspect of audit bodies, audit objectives, audit rules and regulations,audit approach and methods, etc. Next, I collected a number of related cases at home and abroad, such as the Indian Ocean tsunami, hurricanes Katrina and Rita, the United States, Japan,2008 earthquake, Taiwan 921 earthquake, and Wenchuan earthquake disaster relief funds and materials with which to conduct comparative analysis of the audit practice.Based on the case analysis, this paper further find out the major problems and inadequacies of the current audit system of relief funds and materials. The main problems are:①The main audit bodies is relatively homogeneous, the existing audit bodies are national audit, civil audit and internal audit.The role of civil audit and internal audit of weak; and although the national audit is the dominant, its perspective is still limited in China, for funds and materials donated to overseas there lack of tracking and auditing consciousness. ②Audit objectives doesn't suit the new environment.③The laws and regulations that audit based on are not sound and there is no related t audit guidelines.④Auditing process and methods are all backward.The issue mentioned above can be summarized as oneness, unilateralism and hysteresis. Unity mainly refers to the audit bodies. Unilateralism is mainly reflected in the audit objectives and audit methodology.Hysteresis mean that the audit approach in general is a post-audit, which has been performed when the loss and waste has become a fact and the national interests and interests of the masses has been damaged.ChapterⅢis about the measures to improve the audit system of the disaster relief funds and materials.First of all, the author proposes a comprehensive line of thought, which is mainly based on the immune system theory.Based on the revelation from the theory of immune system, I consider to include the theory and its enlightenment into the current audit system of the disaster relief funds and materials through three dimensions. To overcome the oneness or singularity,the spatial dimensions should be introduced, that is, adding the civil audit and internal audit into the relative single structure of audit body,While overcoming unilateralism, we should think over and improve the audit objectives and methodology according to the idea of the immune system theory. And to solve the problem of hysteresis,we should introduce the dimension of time, that is divide the audit work into three phases:beforehand,going-on,afterwards. In particular, we should attach importance to prevention beforehand. Because the system theory point out that the system must have clear objectives or a specific function, therefore, the author introduces a third dimension-the dimension of audit objectives. After discussion, I believe that the audit objective of disaster relief funds and materials should be accountability and transparency, which is more essential goal.Adding the idea of "the immune system"through these three dimensions to the existing audit system of disaster relief funds and materials can not only solve the main problems in the existing system, but also gives it new meaning, new features (immune function).After bringing out the complete set of ideas,I then carried out the ideas in a more concrete way by discussing the basis,objectives, principles and the audit system improved in accordance with the conclusions made before in turn. Then, I thought about the system's operating mechanism. With the conclusions of the previous case study, the author deem that we should enhance the effective functioning of the audit system from three aspect:the technical, institutional and system. These three areas determines the operation efficiency and effectiveness of the system.And base on these operation results, the audit system of disaster relief funds and materials can also act towards the three by promoting technological improvements, reformation and system perfection.Finally, ChapterⅣsummarizes the main conclusions, innovation points, limitations of this article and prospects for future research.The principal innovation in this article are as follows:First,the angle of this article is very special and challenging. There is rare study on the audit system of disaster relief funds and materials.And to improve the current system by including the idea of "the immune system" theory into it is even more unprecedented. The writer boldly carried out a preliminary study on this issue.Second,the research datas are new.Especially,the foreign literature are all original first-hand information. There is no introduction of the latest and valuable foreign literature on audit of disaster relief funds and materials to China at present. The author first collected these documents and then translate, organize, summarize these original data, striving to introduce the very essence of these literature to the readers. As for the study of domestic data,the "new" is reflected in the full, complete, thorough and lucid induction.The writer did the analysis from journal distribution, year of distribution, content, authors in terms of types of the results published about the disaster relief funds and materials related audit and came to valuable conclusions.Finally, this paper reviewed the current audit system of disaster relief funds and materials and study the measures to improve it for the first time. And the attemptment of adding the idea of "the immune system "theory through three dimensions to the existing audit system of disaster relief funds and materials is also innovative. The three dimensions are spatial dimensions, time dimension, target dimension. This can not only solve the main problems in the existing system, but also gives it new meaning, new features (immune function).As for the operation of the system improved,the article says we should enhance the effective functioning from three aspect:the technical, institutional and system. These attempts on the study of the audit system of relief funds and materials can all be deemed as the first time.