Research On Follow-up Auditing Of The Projects Invested By Local Governments

With China’s rapid economic and social development, the disposable income in the hands of local governments is growing speedily. Investment has become an important means of macroeconomic control and economic development for local governments. However, in the construction of investment project, there are some problems such as unscientific decision-making, benefiting through private partnership and low efficiency of investment which result in large loss of governmental funds.One of the efficient means of guarding governmental funds and improving government investment efficiency and dissolving the various problems in the construction of governmental investment projects is application of follow-up audit by the auditing authority. Through the research and analysis of follow-up auditing of the governmental investment projects, the local auditing authority can be well guided and better functioned as "immune system" in promotion of governing power of the nation, thus become a good counselor and assistant to local governments.The thesis makes a contrast between follow-up auditing and traditional pattern of investment auditing on the basis of the problems in governmental investment projects and give a all-around analysis of the necessity and merits and drawbacks of follow-up auditing. Next it introduces the development and practice of follow-up auditing in Dongying City, Shandong Province. Through the analysis of classic cases and implement steps it generalizes the practical experience of Dongying city, carefully sorts up the difficulties and problems in previous practices. It meditates further in terms of comprehensive mechanism, policy, implementation and management of intermediate institutions and auditing units etc, and gives feasible solutions in order to provide beneficial reference to all levels of auditing units for their breakout and reform in the auditing of governmental investment projects.