A Research On The Audit Monitoring Mechanisms For Charity In China

Along with the ever-deeping reforms of the economic and political system in China, it becomes increasingly important for the consummation of social services. As the supplement of the government and the market, charities should play a leading role in social public services. However, charities in our country have come to show obvious administrative appeal because of the limitation of current systems. Besides, frequent scandals have seriously diminished public trust of charities, and breakdowned the bottom line of the whole society. Therefore, it becomes the key point for China's charities'sustainable and healthy development to break through the present system limitations and set up monitoring mechanisms under the protection of reasonable systems. As a basic and professional monitoring measure, audit plays an important role. Yet its functions are limited by present system designs and the whole monitoring environment and the defects in monitoring configuration. All these above point to the urgency of setting up perfect audit monitoring mechanisms in charities. This is very important for guaranteeing the interest of stakeholders, maintaining charities'public trust, and finally leading government administration to the development of'Small Government, Big Society'. In this regard, with focus on charities'audit monitoring problems, this article takes the current predicament as the cut-in point to find out the effective methods of charities'audit monitoring by the way of normative research, historical analysis,comparative analysis and case studies.Firstly, the author defines related concepts, especially for:"mechanism". The author points out that it is a dynamic process, which links the different parts of something in some way so as to work in coordination. This paves the way for the research in this article.And then, the author makes legal analysis from the perspectives of related laws, public trust responsibilities and agency theory, which actually elaborates the necessity of setting up audit monitoring mechanisms in China's charities. Meanwhile, with history analysis and contrast analysis, the author illustrates the development and monitoring management of charities in China's feudal times and America, which provides reference for current development of China's charities.Subsequently, based on the present situations of monitoring mechanisms of China's charities, this article analyses related mechanism designing, and points out administrative problems on access, monitoring management, operation process of funds and so on. It also analyses the diversity of charity monitoring system, and points out the defects in government, society and charities themselves, which further discusses the dilemma of establishing charity audit monitoring mechanisms. Moreover, the article put forwards the importance of audit monitoring and the defects in audit disposition in China, so as to show the importance of establishing charity audit monitoring mechanisms. With the above theoretical basis, this article also proves the necessity of audit monitoring mechanisms with a real case---Guo Meimei Affair.In the end, considering Chines status and through experience of foreign countries, the article discusses reasonable system design according to Shadowless lamp Effect to provide outer protect for charity audit monitoring mechanisms. The article finally discusses subject of entrustment, the operation model and how to set up information disclosure mechanisms with the help of audit so as to reinforce the external application of audit accomplishments.