Study On Industry Security Audit Of Foreign Mergers And Acquisitions

With the continuous advance of economic globalization and changes in the pattern of international politics as well as peace and development have become the subject of the world today, national economic security is increasingly becoming an important concern in all countries, and as an important part of a national economic security, industry security has attracted more attention.Since China's accession to WTO, foreign investment in China have been expanding rapidly as well as the fast-rising foreign mergers and acquisitions. Moreover, the motivation of foreign mergers and acquisitions in China is no longer the traditional single-target,such as expanding scale, reducing costs, transfering industry, but the implementation of industry consolidation and building a global production system on the global resource allocation and competition in the industry.Man of mergers and acquisitions are mainly large multinational companies, and the targets are directed at the leading companies of various industries. The systematic trend of mergers and acquisitions are mainly an overall encroachment of an industry, the extension of industrial chain of mergers and acquisitions and the purification of the national brand. Nowadays, the topic between foreign mergers and acquisitions and China's industry security has become a issue that need us paying high attention to.The basic function of government audit is to safeguard the state assets and public resources to be safety and effectiveness, and its nature is economic supervision, as well as its fundamental purpose is to safeguard national interests. Along with the frequent cross-border flows of capital and goods in the process of marketization and economic globalization, there are more uncertainties threatening a country's industry security. As internal supervision departments of the government,government audit body should give full play to its immune system. The government audit could determine, identify and analyze the negative factors affecting industry security, and make appropriate treatment recommendations in order to safeguard the industry to be security and developed steadily,and promote fast yet steady economic growth. At present, as the theoretical research that government audit could safeguard industry security is not yet mature, there is no relatively uniform standards in the regulatory process that the results identified by audit institutions could have some defect. Therefore, we need to establish a comprehensive evaluation index system for industry security audit so as to give a objective and reasonable evaluation to China's industrial safety as well as provide an effective method for the government audit to safeguard our industry security.This article aims to study and explore how to build a index system of industry security audit, which provide a method for the government audit to safeguard industry security. At first, this paper analyzes the research situation both at home and abroad, analyzes and defines the related concepts of industry security and government audit, and expounds related theories, which make up of the papers'theoretical basis. Then by generalizing the previous study results, this paper builds a set of evaluation index system for industry security audit, and assigns appropriate weight for each indicator by analytic hierarchy process, thus providing a theoretical basis for the government audit to safeguard industry security.This paper based on China's pharmaceutical industry, uses the evaluation index system for industry security to assess the indicator of the security of China's pharmaceutical industry, then comes to the conclusion that pharmaceutical industry is in a insecurity state, which coinciding with the fact. At last, according to the study results, the paper brings up some suggestions to help government audit to safeguard industry security.