Announcement Results Based On Local Public Finance Audit Institutions Perspective

Theoretically, there is the Principal-Agent relationship between the public and the government, in which the government undertakes the accountability conferred by the public. However, under incomplete contract conditions, the asymmetry of information is very serious between the government and the public. Therefore, the respect for the public rights to know and to supervise is an implicit requirement for the government to fulfill its public accountability. At present, with the construction of democratic political system and the continuous improvement of public finance system, the government is required by the public to further increase financial transparency, especially to strengthen the audit supervision and information disclosure of government’s public expenditure. In China, the first audit result was disclosed to the public by the National Audit Office in2003. Since then, the local audit institutions all over the country have begun to disclose the government audit result. Meanwhile, the disclosure of local government audit result has got wide attention from the public and news media. Nevertheless, it is widely complained that there are many problems in current disclosure of audit information conducted by local governments, such as small number of projects, narrow range of disclosure, less exposure problems, incomplete content and not timely noticed etc.Based on reseaching the defects of disclosure of local government audit result in China and learning from the advanced experience under different auditing systems in foreign countries, this article focuses on buliding an more effective information disclosure model of local government audit which fits for the needs of public finance development in China. Firstly, the local government auditing system should be reformed. Principally, audit institutions should be independent of local government, which is beneficial to evaluate the fiduciary obligation of the local government. Secondly, the information disclosure system of local government should be Improved. On one hand, the implementation of local government budget and the information disclosure of special funds audit should be strengthened. On the other hand, the performance auditing and information disclosure should be enhanced. Thirdly, the approach of the local government audit information disclosure should be improved. The range of disclosure should be expanded and the element of disclosure should be standardised. Finally, this article puts forward some advices as follows to improve the effectiveness of local government audit information disclosure. First, an sound external supervision mechanism of local government audit should be established and strengthened. Second, administration accountability system of local government audit should be carried out. Last, local government audit disclosure system should be improved.