Analysis Of Effective Control Of The State-owned Enterprises Term Economic Responsibility Audit Risk

As we all know, the society has gone through from contracting operationresponsibility audit and management s demission audit to current term economicresponsibility audit. The term economic responsibility audit has been through20yearsups and downs and now has developed into an audit model with Chinese-style. With theapplication for Chinese opening police and the reform of economical and politicalsystem, the term economic responsibility audit has been innovated into a new auditmodel which is given highly attentions from different parties in china.At the same time, state-owned enterprise term economic responsibility audit is alsoanother audit model with Chinese characteristics; it is created in the situation of Chinesereform and opening up. This model is mainly used by the national audit institutions orthe entrusted related society audit institutions to review and appraisal the state ofprosecution of economic duties done by the leaders of national-level audit institutionand national-level state-holding enterprises. There is no doubt that it plays animportant role in protecting the integrity and security of our state-owned capital,supervising and promoting state-owned enterprise leaders to build an incorruptionadministration effectively.With the pace of the reform and opening up, the continually improving reformationin our country s political and economical system, the continually perfection in socialistmarket economy, and the improvement of the situation for state-owned companiessurvival and development stimulate the initiatives of workers especially those corporatecadres, and promote the development of state-owned enterprises effectively. However,the complex of social environment and economic environment pose some challenges forthe growth of the state-owned enterprises and the leaders. There is a history ofstate-owned enterprises abused their powers to seek personal gains due to theimperfection of the reform. For example, some state-owned enterprise leaders harm thecountry s benefit for their personal gains and have secret account for the illegal finicalincome. All of these should not be forgotten anytime. It never rushes to reform thestate-owned enterprise term economic responsibility audit. The state-owned enterpriseterm economic responsibility audit has been deepened due to its suitability to thedevelopment of society. The document the development plan for audit from2008to2012released by The Audit Commission mentions clearly that we should recommendthe institutionalization of province-level minister economic responsibility audit, strengthen the economic responsibility audit between local-level or lower governmentleaders and national-level state-controlling enterprises leaders. Therefore, the analysisand controlling of state-owned enterprise term economic responsibility audit is gettingmore and more important.while on the other side, due to the particularity of term economic audit in thestate-owned enterprise, for example, the short time limit, the various assessmentcontents, the complex environment and the lack of experts of conducting economicresponsibility audit and scientific and unified operation model. Many problems stillexist in risk controlling in State-owned Enterprises Term Economic ResponsibilityAudit, there are still many drawbacks need to be improved in the job of economicresponsibility audit. In our country, the conducting of term economic responsibilityaudit faces helpless, less attention from leaders and auditors, limited time but heavywork and so on. Plus the risks for state-owned enterprise term economic responsibilityaudit can be increased due to the unsound regulations and appraisal standard.This article describes the definition of state-owned enterprises corporate cadreseconomic responsibility audit risk and other related theories, analyzes the risks fromobjective and subjective reasons, and provides the measures to control the risks. Thefurther methods to control economic responsibility audit are available through analyzingXX Power Supply Co Ltd this case study. It is essential to study the risks andcontrolling of corporate cadres term economic responsibility audit, no matter from theneeds of strengthen theories or the development of audit. The article structure is listedas following:The first part mainly talks about the background and meanings of conductingstate-owned enterprise term economic responsibility audit; briefly introduce theresearch theory and method, and this article structure.The second part mainly elaborates the theories and meanings of term economicresponsibility audit risks. The definitions of the risks, the types and the characteristics ofeconomic responsibility audit are introduced here, which provides the theory support formanaging corporate cadres economic responsibility audit in future.The third part mainly explains the poor performance in managing economicresponsibility audit risks, and analyzes the reasons caused the poor performance fromaudit institutions, audit environment and audit subject. The harm of poor risk controllingand relevant measures are also mentioned in this paragraph.The fourth part set XX Power supply Co Ltd as an example, through analyzing the measures taken by A Accounting firm to control economic responsibility audit, it offersbeneficial reference for further managing economic responsibility audit effectively.The fifth part lists the effective measures to control economic responsibility audit risksthrough perfecting state-owned enterprise economic responsibility audit environment,strengthening auditors overall qualities, improving economic responsibility audit evaluationsystem.