The Audit Supervision Of China’s Endowment Insurance Fund’s Entrusted Investment

The National Council for social security fund was entrusted with the management of pension insurance fund operations in Guangdong and Shandong Province. Besides, the State Council published the’"basic endowment insurance fund’s investment management approach". In this social context, the diversification of investment operation of pension insurance fund becomes an inevitable trend. In order to efficiently manage endowment insurance fund’s investment operation, it’s practical to broaden the investment channel of pension funds; ensure the funds to preserve and add value; and strengthen the supervision of external supervision agencies on insurance fund’s investment operation, including government audit. The paper will research on the audit supervision of China’s endowment insurance fund’s entrusted investment operation. First, it will analyze the necessity and feasibility of the audit supervision. Then, it will determine specific audit measures, suitable audit mode and audit methods, in order to help strengthen the risk prevention and control process of the entrusted endowment insurance fund investment, and improve the efficiency of fund management.Endowment insurance fund entrusted investment in China has just start to develop and the behavior of audit supervision in the theory and practice are both poor. On the basis of the related studies at home and abroad and combining the author’s experience in the audit of social security funds, this paper is going to carry out research on endowment insurance fund entrusted investment from the audit objective, audit procedures and audit mode.From the present situation and the future investment fund management trend of Chinese endowment insurance fund management, firstly, it analyses the necessity and feasibility to make audit supervision of Chinese endowment insurance fund investment. As the responsibilities of the Audit Department of the government, to do audit supervision is helpful to improve investment management and prevent risk. What’s more, the legality of audit basis, clarity of audit object, the reference of audit contents and the guidance of audit results all show the necessity of the audit supervision. And then, it states the main content of endowment insurance fund entrusted investment in China, which is including the audit objective, audit implementation process and the key points of audit supervision links. And also determine the safe and effective operation of the fund to provide security, investment decision and system construction provides information and advice, service governance five audit objectives. We do audit supervision mainly focusing on internal control system implementation, investment decision, investment main body and related investment participants duties to perform, investment proportion and scale, investment period and the management of return on investment. At the same time, it analyses the mode of the audit and supervision, which can choose the special audit investigation mode, mode of tracking audit and performance audit mode. It also introduces the concept of audit mode and the specific methods of operation, especially on the approach of implementing the mode of performance audit.Based on endowment insurance fund investment pilot achievements and problems and analysis of foreign fund supervision experience, this paper believes that we should strengthen the construction of the following aspects in order to improve the effect of endowment insurance fund entrusted investment audit supervision. The first one is to actively explore suitable management mode for our country, so as to determine the focus of the audit oversight and improve the efficiency of audit and supervision. The second one is to set up the construction of the old insurance funds entrusted investment audit evaluation index to reflect the fund entrusted investment management, investment and operation cost, effect of income of endowment insurance fund entrusted investment. The third one is to strengthen the construction of auditor team and enhance professional level of auditor’s, especially the professional ability of the economic management and capital investment, so that they can perform audit work in every field and industry requirements. The last one is to improve the external supervision system, strengthen the responsibilities of every department and form a cohesive force to improve the effect of supervision.