Research On China’s Local Government Performance Audit And Its Mode Selection

since the “new public management campaign” occurred during the 1970 s, public organizations have widely conducted private performance auditing and managing systems in practices. Under this circumstance, traditional government auditing has transformed into a new auditing system which is centered by performance auditing, with the support of financial auditing. Indeed, performance auditing has become the mainstream auditing method for today.The concept of performance auditing in Chinese government is falling behind both in theory and in practice. The apparent causes can be both traced from macro-level institutional limits as well as micro-level out-dated existing auditing methods. Most domestic researches are concerned with macro-level analysis, which progress very slowly. This study tries to explore a brand-new model for Chinese auditing system by combining both domestic and international auditing theories and practices. This model tends to continuously improve government performance auditing levels.From the perspective of auditing model selections, combining with our government context, the study discusses the necessasity and viability of the application of a risk-oriented auditing model applied in Chinese government. Within which, procedures of performance auditing in such model is illustrated, and types of risks are suggested too. By launching up a risk-oriented model and defining a complete auditing system for that, we can expect a significant support on Chinese government performance auditing field of analyses.According to the actual situation of China’s government performance audit, the program of risk oriented audit mode of local government performance audit is divided into four stages: audit project selection stage, audit planning stage, the implementation phase of the audit, the audit report stage. In these four stages,the audit risk assessment and response throughout the audit process. Risk oriented audit emphasis from on macroscopic understanding of the audited entity and its environment, including internal control, risk identification and assessment to the full accounting statements of material misstatement risk, according to the design and implementation of control points and substantive tests procedures, the audit risk control in the low level of acceptance. Through the research of government performance audit risk oriented audit mode is conducive to the implementation of China’s government performance audit, improving the effect and efficiency of government performance audit, has certain theory significance and the practice value.