A Study On Audit Of Local Government Debt

Outburst of the global financial crisis in 2008 made the global economic slump. It was a huge challenge to our country, which relied on exports for economic growth. In response to this crisis, our government made a 4 trillion economic stimulus plan, which includes matching funds 1.2 trillion and central government investment from all levels of government. It stimulated all levels of government to vigorously promote investment projects, making the size and number of local financing platform reached its peak. Risk of local government debt has caused some threat to China's economic security. The society and center government have paid high attention to local government debt. The European debt crisis also sounded the alarm for government debt issue.Local government debt is closely related to people's livelihood, the normal operation of government, social stability and national economic security. Huge local government debt implies a huge risk, especially for government debt by government credit endorsement. If you cannot take preventive measures, the consequences will be disastrous when the government debt crisis breaks out. Government audit plays a key supervisory role on managing and running the country. Government audit is immune system to ensure the smooth operation of state power. It is also the foundation to protect the Government's financial security and financial security. Therefore, improving local government debt audit has an important significance on the timely detection of local government debt crisis, preventing the state's fiscal and financial risks, regulating local government financing. In recent years, the theoretic and practical field is very keen on the causes of local government debt risk, assessment of the local government debt and the strengthening of local government debt audit. Currently local government debt problem has made serious impact on the financial and economic security of our country. Government auditing plays the role of immune system in the preventing,disclosing and reducing the risk of the national economy. Local government debt management audit local contributed a lot to handle government debt issues. Therefore, the study of local government debt audit is necessary. Since the current research on local government debt auditis insufficient, this study supplements this gap with a certain reference value.This paper chooses the audit of F province debt as the research object, and describes the audit process of it including making audit project, conducting audit and making audit report.The shortcomings of the audit process mainly are audit engagement deficiency, independence deficiency, risk control evaluation deficiency, information disclosure deficiency and coordinatedeficiency. This paper further studies the recommendation on deepening the reform of local government debt. This recommendation mainly includes building normalized audit mechanism, building debt risk index system, strengthening the independence of local audit institutions, strengthening cooperation with other types of audits, and improving audit disclosure announcement.