A Research Into Financial Audit Based On All The Government Funds Yuyao As An Example

Financial audit, the task endowed by the audit law of the People’s Republic, as well as the eternal theme of the national audit, is playing a leading role in each stage of development of national audit. It is the core of various kinds of special audit including that of administrative institutions, enterprises, finance, the government investment, and economical responsibility.The establishment and the consummation of the public financial system, the enforcement of a series of budget management systems including the centralized paying system of the exchequer, the government procurement system, separate income and expenses system, the department budget system and so on make a major change and improvement to the management system of financial budget. With people’s supervisory consciousness strengthened about responsibility and effects of government departments’managing and using of public resources, they demand more of audit. What’s more, NPC budget requires more about the audit of financial budget, suggesting the audit reports that only reflect the budgetary financial funds are not comprehensive and that the reports should reflect all the funds that cover varieties of government activities instead.But there exist some problems with the current financial audit. For example, local financial audit departments have no right to participate in the planning, checking and accounting of budgeting. What’s more, the government debts, the land use right leasing fees and etc. are not included in such financial audit supervision scope, thus resulting in the lack of relative independence, and depth and breadth of audit. Plus, the limitedly exercised performance audit and low-utilization are also the limitations that make it unable to suit the reform of the financial budget management, and satisfy the demand of the supervision of people and the congress as well.Take Yuyao as an example, a research shows that the capital brought into budget management only makes up one - third of the government funding , the financial auditing based on budgetary funds pay inadequate attention to two-thirds of non-budget funds, which are never supervised by the NPC. So there is not effective management in the non-budge funds. The management is not standard, with many disadvantages such as the lack of criterion, random management of incomes and expenses and black case work. Including non-budget funds into the audit scope and practicing financial audit based on all the government funding will expand constantly scales of non-budgets, deepen the reform of the financial budget system, accelerate the transformation of audit and promote the administrative management system.Through the analysis above, we know that to carry out the financial audit based on all the government funding, we should do as follows. First of all, include in the audit scope all the budgetary and non-budgetary funds, the government funds, funds raised from all investment and financing institutions of government and the land use right leasing fees. Second broaden auditing domains, extending it from finance and tax departments to all departments organizing, distributing and using public resources and from financial incomes and expenses to finance management systems and economic policies. What’s more, change audit logos, focusing on macroscopic policies rather than microcosmic ones, keeping in mind all the systems and policies of audit, regarding people’s interest as the starting point and the ultimate goal of audit, and changing audit mode, integrating finance and audit. Plus, establish project management system based on financial budget implementation audit with the department budget implementation as the main contents, and combine financial budget implementation at the corresponding level, department budget implementation audit, the audit of the investment in fixed assets, enterprise audit, economical responsibility audit, and special audit and investigation. Last, realize all-sides supervision of collection, distribution, use and management of funds, actively explore the comprehensive benefit audit, and improve the efficiency of financial capital.