On the adjustment of the government audit objectives

Abstract: The reality of China's accession to WTO will have a comprehensive Economic and social impact, including the impact of the government is the most profound. To join the biggest challenge WTO challenge against the Government, the biggest impact is on the Government of behavior and behavior. As political and Economic system in China an important part of the audit, but also to the relevant requirements of WTO rules to make timely adjustments, including adjustment of the financial audit objectives, financial audit objectives, corporate audit objectives, audit objectives of social security funds and Economic responsibility audit objectives.

China should adjust to take effective measures to cope with the challenges of joining WTO. China's accession to WTO, the domestic law of the adjustment, change in the mode of Economic operation, the international rules on government intervention in the economy means the special requirements, and out of the domestic Economic organization country participation in International Economic operation and a series of new changes, behavior and our government in many areas of audit, impact and challenges, to audit adjustments opportunities, but also to open up the space for the audit adjustments.

First, the government function and the adjustment of behavior
(A) the role of government functions
1. Government agencies essential to economic development as top government body, has its specificity, it does not hold any institution's resources and capabilities on behalf of all members of society with a universal binding force. The World Bank has In a report that the government-led development inevitably fail, but the lack of Government's development is bound to the case, history has repeatedly demonstrated that good government is not a luxury, but very necessary. without an effective government, economic and social sustainable development is impossible. effective government is the key to economic and social development. in the world market system of countries and regions, the market mechanism is not spontaneously occur to a large extent dependent on government action, such as the Limited is the government created to reduce risk.

2. The role of government depends on the behavior of the government the role of government to do more or less critical than some of the issues, but should be "how" we go to questions. The Government's role is to market, not replace, the market, to a sense of service and cost effectiveness. The Government refers to the behavior of the main ways the government rules, these rules themselves and the government play a role in behavior. our government in varying degrees, there are still offside, dislocation and the absence of the phenomenon requires deepen reform, improve the mechanism to correct it.

3. The Government will not do anything, not superstition government forces Historically, the traditional planned economic system and, later, the East Asian model, government-led economy, instead of market allocation of resources, cultivate leading industry and business organization. These practices certainly contributed to the economy high-speed development, but as the market matures and the increasing complexity of economic relations, government-led economy has exposed the drawbacks, such as system transparency is low, the legal system is not perfect, family-owned business, etc., as the 1997 Asian financial crisis of internal reasons.

4. The role of government in different countries and different stages of development are different, in general, the government's economic role and market development, economic development stage, the Government's capacity. Different countries, economic development and openness of the market due to different national conditions , there will be very different. So, to say, there is no standard government on the general functions and behavior patterns. from the current situation of our country at this stage of the Chinese government not only to maintain the market order, and to participate in the training market. China is in the process of industrialization, uneven regional development. In the process of economic transition, on the one hand ask the Government to change its functions, significantly reducing administrative interference; the other hand, can not rely on the government to play a special role, such as promoting the strategic state-owned economy of the reorganization, establishing a social security system. can not be like that of Western industrialized countries, limited to compensate for market imperfections.

(B) the adjustment of behavior in large part to join WTO is a "government accession to the WTO," WTO rules because it is mainly bind the Government and the way of market intervention. But we came from a planned economy, the government too much centralization of power , the other too little autonomy of economic agents, therefore, WTO, the Government's role in the economic sphere should be less emphasis on Chinese characteristics, more attention to the international general rules, where the functions of government is to bear the brunt of change. This concept must establish, this is a prerequisite.

1. The Government should clarify the three boundary A. Since the boundary between the Government and civil rights of the government is too large, the government assumed the risk by the citizens themselves, once the personal conduct of many citizens and caused a big loss or impact, ultimately borne by the Government. B. The boundary between the Government and society in many associations, the Federation, the Federation in the exercise of government functions, belonging to various ministries of the intermediary organizations are also part of the exercise of governmental functions. C. boundaries of government and the market in the past, the Government Through the intervention of the enterprise, often inappropriate intervention in market behavior. For example, government intervention in capital markets, land markets and corporate mergers and restructuring, corporate investment, loans, guarantees, subsidies, etc., resulting in distorted price signals, so that the role of market mechanisms in resource allocation difficult to play. In the future, to distinguish what the government should manage and what is the need to fully self-regulating market.

2. All government functions qualified to join WTO, countries (regions), are recognized as market economies, market economy and transparency of the legal system, which requires government action must be incorporated into legal track, the concept change "omnipotent government "to" limited government. "China's accession to WTO, must construct the new concept of government action and government behavior to the current terms, the Chinese government's behavior, the principle functions compared with the WTO, many aspects of very incompatible, address the absence of government functions, offside and dislocation of the way, in addition to reform of government institutions should increase efforts to remove unnecessary administrative approval system, and strengthen civil construction, etc. In addition, the WTO framework, the government functions should be limited to the following: A. the development of national development strategies and macroeconomic adjustment; B. production of public goods and public services; C. protect the public and private property; D. adjusting income distribution, establish a sound social security mechanism; E. restricted monopoly, encourage competition for market players to provide equal competition environment.

3. The Government's adjustment of behavior after joining WTO, the government's economic management functions does not mean that the overall weakening, on the contrary, through reform of government economic management, strengthening the government functions reasonably, the fierce competition of globalization to maintain its own people fundamental interests and national economic security. In the framework of WTO rules, to constantly adjust the government's behavior, and improve government capacity to manage the economy. In particular, it is necessary to correct guidance, positive control, which is recognized by the WTO system. face on the world economy on the domestic economy arising from the impact of various complex, the Government should give full play to the initiative, through the implementation of sound macroeconomic policies positive, transforming negative factors, to ensure the sound operation of the economy. a rational and prudent government is China's economy the new environment an important guarantee for the healthy growth; Second, we should vigorously support. To take full advantage of WTO members to allow the use of the protection means to protect their infant industries practice, and actively explore effective ways to support and protect national industries and vulnerable products in the fierce competition from huge impact. Of course, the purpose is not to protect the Government to protect backward, but to eventually abolish the protection and promotion of protected industries or improve the international competitiveness of products; third deepen the reform with the times.

Compared with the previous reforms, WTO biggest change after the reform is "I want to reform" to "want me to reform," Forced formation mechanism reform. Government behavior to adapt to such a request, consciously intensify reform, speeding up the pace of market-oriented national economy. We should follow the principles advocated by WTO to deepen the financial system, grain circulation system, the social security system, the state-owned assets management system and a series of reforms. At the same time, vigorously promote information technology, accelerate the modernization, accelerating urbanization, constantly improve the level of opening up to safeguard national economic security, national institutions and international rules to eliminate between the collision and friction. the only way to digestion of real economic convergence with the WTO rules of the conflict, to ensure our economy in the world competition gain the initiative.

Second, the adjustment of the government audit objectives WTO is the legal basis for the multilateral trading system and organizational basis. China's accession to WTO, we must follow WTO commitments and rules, a series of trade, investment, structural reforms, to make the audit objectives, the audit focused adjustments. In order to meet WTO requirements, China is stepping up to the existing tax system, regulations, investment and financing system adjustments and modifications. mainly include: A. the tax system reform. the tax adjustment will follow the fair, just and open manner, and gradually adjustment of consumption tax, unified enterprise income tax, improving the local tax system, improving the personal income tax and property taxes, continue to promote the "tax reform" process, and improve the International Economic activities of foreign tax policy. B. public finance policy reforms. further promote budget reform , all expenses are included in the budget, the implementation of a single account and the state centralized payment systems, push forward and improve the government procurement system. C. Accounting settlement will be significant changes. the future will rely on computer technology, and gradually to the provincial centralized accounting. D. transfer payments to the agricultural sector will be the focus of attention; E. financial markets and financial supervision system will be a huge change. This audit work is concerned, will face a new situation, the audit objectives must be to make new adjustments.

(A) the adjustment of the financial audit financial audit objectives, including income and expenditures, budget implementation and audit of the accounts audit, administrative audit, audit of science, education, social security, audit, environmental audit, audit and other fixed assets investment. In fiscal audit, financial audit by the general direction of adjustment to the audit of public finances, that is not only to strengthen the audit of budget implementation corresponding levels, strengthen the government budget, the audit of funds such as science text, but also to strengthen the social and public works, social security funds and other social auditing of public funds to achieve the audit focused on the transfer and adjustment of income and expenditure to both the development of the audit, and ultimately the transition to a performance audit based. based on the expenditure audit of the legality and effectiveness of audits to legitimate both the development of , and finally the transition to effective audit based.

(B) the adjustment of the financial audit objectives to join WTO, China's financial industry will face both internal and opening up the challenge, the near term, the impact and influence will bring the following: A. increasing the pressure of competition the four specialized banks, accelerate the process of transformation of its business; B. major changes caused by the structure of the securities market, foreign investment companies may hold a monopoly; C. By allowing foreign insurance institutions accounted for 50% of the shares, while China's insurance companies and foreign insurance companies relative to than not have any competitive, may result in a few years China is no longer a wholly-owned insurance company in existence; D. serious brain drain, a large number of financial personnel lured away by foreign financial institutions; E. promote the process of marketization of interest rates, to financial restructuring and financial supervision more difficult; F. forces to accelerate toward free convertibility of the RMB, thus increasing the difficulty of government regulation. In addition, the mixed operation of foreign banks to enter China, while China is still currently in place sub-sector supervision system, which obviously can not adapt to future changes in the situation. As a comprehensive financial audit of the supervision, in changes in the situation, may wish to play a unique role. Therefore, in the financial audit, financial revenue and expenditure should be Audit gradually to improve the quality of financial assets and prevent financial risks and to carry out financial performance audit adjustments, while joining WTO, China should focus on possible changes in the financial markets and the direction of China's financial supervision system, as soon as possible in the audit of the financial supervision system, the status of and function, increase auditing and supervision.

(C) to adjust our business objectives of the audit is still in the system of state-owned enterprises during the transition period, the original historical burden is not completely eliminated, but also bear certain social responsibilities, coupled with years of technological progress is slow, low levels of productivity, competitiveness relatively poor, and the losses and large losses. joined the WTO requirements of state-owned enterprises according to internationally accepted rules for running the business and reduce losses of government subsidies to state-owned enterprises, which makes the state-owned enterprises must rely on themselves under the impact of foreign products in , seek survival and development, which face more severe challenges. corporate audits, including industry and transportation, business audit (financial audit of ways, but also from large corporate audits.) enterprise audit shall be based on the audit of state-owned enterprises gradually value of the assets of state-owned shares in value-based corporate audit adjustments; from the traditional audit of financial revenues and expenditures to focusing on <<Audit>> specified assets, liabilities, profit and loss audit of the transitional adjustments; dominated by the legitimacy of the audit to the real, legal and benefits of both adjustments. Under the current circumstances, the authenticity of corporate financial revenue and expenditure audit is the foundation, is the premise, should be top priority. In the future, in a real, legal basis, according to WTO rules, but also with well-developed market economy countries, on the economic benefits of state-owned enterprises to conduct a comprehensive audit.

(D) social security fund to adjust the audit objective to join WTO, due to the pressure of international competition and the requirements of the international division of labor, China's economic structure and industrial structure adjustment and enterprise restructuring is inevitable, as the liberalization of the market economy, China's part subject to greater industry and the impact of state-owned enterprises, followed by a large number of the labor force will flow and the increase in unemployed persons. particularly in agriculture by the attacks, a large number of farmers will become the urban floating population, the competition in the job, but also allow more The city people to become surplus workers, further expand the scale of unemployment, government finances requires a corresponding increase in this part of the unemployed and the minimum living cost of re-employment to alleviate the social conflicts and promote social stability, and social security funds but also because of its wide coverage and forced to become a social policy of great concern to the public funds. only social stability, political order and stability, political stability and stable development of the economy only, WTO, improve and perfect the social security system, strengthening the social security budget, monitoring the normal operation of social security funds, national policy for a time a major task facing the government in which the audit will play an important role. Links http://www.hi138.com Research Papers Download, the Government should attach importance to the audit of financial revenues and expenditures and other audit-based auditing to the transfer of social security funds, the adjustment of social security funds to strengthen the audit of social security funds to ensure legitimate, effective use, and promote social stability and the overall stability of our political, social funds to ensure the safety, integrity, promoting national Macroeconomic policies are well implemented.

(E) the adjustment of economic responsibility audit objectives of economic responsibility audit is primarily a national audit institutions of the party leadership's department, unit revenue and expenditure, financial revenue and expenditure of the real, legitimate, efficiency audits, to distinguish between leading cadres themselves should bear the main responsibility and direct responsibility, where business leaders on corporate assets, liabilities, profit and loss of real, legitimate and effective audits, to distinguish between business leaders in charge of my responsibility and should bear direct responsibility, its main purpose is to provide the basis for the appointment of cadres study and promoting cadres diligent and honest administration, fight corruption from the source. WTO rules require the Government to increase efficiency and improve efficiency, decision-making depends largely on the ability of leading cadres, working ability and level of law enforcement. joining WTO, the economy responsibility for audit shall be based auditing of the traditional to start from the personification of the auditing of audit adjustments, especially for business leaders, economic responsibility audit. the one hand to intensify investigation of major violations of law and discipline to promote clean government ; the other hand, we should focus on the internal control system evaluation, carefully analyzed the integrity of corporate internal control system and effectiveness, to improve and strengthen the supervision of the government to provide services to enterprises, leading cadres to promote administration according to law, the right decisions, effectiveness and the benefits of enterprise economic activity.

Third, the adjusted response
(A) changing concepts, unity of thinking and realize the adjustment of government audit
1. WTO is our own choice. Joining WTO, China has become to enjoy the rights and obligations of WTO commitments and implementers. Current levels of government, should the requirements of the WTO deal between China and the WTO members economic and trade relations, including trade relations services. Meanwhile, according to requirements of WTO rules to accelerate the transformation of government functions at all levels, including of course a government economic oversight functions of government audits.

2. WTO is both our challenge and an opportunity. History shows that the development of the audit, the audit process of development with a progressive and twists and turns, the audit function by the executive power has to play the rules and constraints, still retains some of the administrative and judicial traces of supervision. In the planned economy period, the policy of administrative power to the full, funds, financial, and human and other government audit provides a rapidly create conditions so that the full establishment of the government audit organization's network. the power of government to create an audit by government intervention, thereby affecting the independence of the audit for the survival, weakening the role of government audit. accession to the WTO, the government audit by the market-oriented reforms, transformation of government functions, establishing a modern enterprise system and the multiple impact of economic integration, although the face serious challenges, but also dialectical perspective, but also the opportunity to obtain a good adjustment.

3. Government audit adjustment in China is not only necessary but also possible. Social and economic system reform is a big adjustment, the government audit is an artificial system, it is the will of the people created by the legal form of a resilient system, which often happens with the outside world linkage effects. the one hand, government behavior change with the accession to the WTO, must request the Government audit adjustment occurs; the other hand, the development of market economy, the transformation of government functions has also laid a solid foundation, so that includes the audit adjustments, including the transformation of government functions is feasible. It is also of practical significance to the government audit adjustments lies.

(B) emphasis on Research and theoretical analysis, the progress of the audit adjustment theory of government audit adjustments whether or not critical to the smooth. The Government audit adjustments, the combined result of external factors, is a systematic project, which requires the use of system method as a whole, macro, structure, elements, links, change and audit functions adjustment discussed in terms of .1. a whole, the government audit adjustment is a change in government behavior specific content. led to the change of government functions changes in the behavior of functioning as a government audit functions of government oversight should be to achieve adjustment and change .2. From a macro perspective, the government audit adjust to economic globalization and changes in the concept of national economic interests. no longer a government audit kinds of administrative means, but according to market-oriented, functional characteristics with the independent administrative .3. Structurally, government audit is subject, object and means of unity, the object would inevitably lead to changes in the means of change, thus affecting the main positioning problem, the Government audit adjustments is essentially an important issue for the government of targeting .4. from the elements of speaking, the government objectives of the audit is also auditing the most important factor, but it is dynamic, changing, with significant changes in internal and external environment was adjusted at any time. The Government audit adjustments, from the specific sense, is the result of changes in audit objectives .5. from contact terms, the Government Audit and non audit, internal audit has a close relationship, with the market economy, the diversification of stakeholders to further strengthen the trend, with the expansion of the scope of the internal audit function, the effectiveness of complementarity between the various types of audits, both closely linked to relatively independent and more mature relationship between the structure ternary and coordination. Through the analysis, the government should audit the progress of the adjustment is to clean up, after adjustment, and then improve and develop. that is not suited to clean up the audit with the WTO laws and regulations. adjust the scope and focus of government audit, and improve the auditing legislation and auditing system, developing and strengthening audit institutions and auditors.

(C) implement and carry out conscientiously the principles of government audit adjustments
1. Deal with the relationship between stability and innovation. China's accession to WTO is based on the basic conditions for accession to the WTO as a developing country, which is to strive for an adaptation period to successfully achieving a smooth transition. Government audit adjustment should also be to stabilize the the main, to avoid overly excessive, resulting in unnecessary losses.

2. Deal with the realities in China's relations with international practice. Our basic economic system, legal and cultural environment, there is a certain gap between the international, economic development is consistent with the evaluation criteria. It should be clear economic benefits of economic development and the concept of full respect for international conventions. But WTO rules are not fully representative of all countries, especially developing countries, should actively use the opportunities brought by WTO accession, the full expression of the developing countries including my own will, the government should adjust the audit services .3 that purpose. deal with institutional reform and strengthening the relationship between audit and supervision. institutional reform is to streamline the organization, triage personnel, and improve efficiency. from the market-oriented perspective, is to transform government functions, to solve the contradiction overstaffing. The Government functions after the change of the function of direct management of the economy will be weakened, but the oversight function of the economy will be strengthened. Therefore, the audit oversight functions should be strengthened, government audit institutions should be strengthened, government auditors should also be extended, but to refrain from strengthening the machines, creating new overstaffing situation.

(D) market-oriented ideas to determine the adjustment of government audit
1. The Government should focus on the audit supervision of the layout of how to accelerate the strategic readjustment of state-owned economy. The main should be clear, decomposition, and regulate the government as a public manager and the owner of the two functions of the state-owned assets, improve and adapt to the new system of state-owned assets management system; Government supervision of the basic out of the business activities of direct administrative intervention.

2. Government audit should focus on monitoring the government on how to improve macroeconomic regulation and control functions. Mainly to further improve the fiscal, financial, foreign exchange management system, mainly economic and legal means rather than administrative intervention to implement macro-control, the formulation of economic and social development planning, enhance changes in the International Economic environment, ability to cope, to safeguard national economic security.

3. The audit should focus on monitoring the government to improve the market mechanism functions. Including the definition and protection of intellectual property legal system to protect the flow of goods and factors of production, breaking the local and departmental administrative monopolies or restrictions to establish and maintain a unified, open and competitive market order, market entrants to create a basic credit, predictable and fair competition order.

4. Government audit should focus on monitoring the government on how to improve income distribution and social security functions. Including the gradual establishment and improvement of the whole society and an efficient social security system, through effective tax and transfer payment system, regulating the national income distribution, promoting social justice harmony.

5. Government audit should focus on monitoring the government to strengthen economic and social sustainable development coordination functions. Including the correct handling of population, resources, environment and economic development of the relations, with economic, administrative and legal protection and rational exploitation of natural resources, environmental management pollution, maintain the ecological balance and reduce the social costs of economic development.

[References]
[1] Li Jinhua. Chinese audit to be on the [M]. Beijing: China Financial and Economic Publishing House, 2000.

[2] Lin, Hu Shudong. Accession to the WTO: Challenges and opportunities [J]. International Economic Review, 2000, (5 ~ 6).

[3] Li Li. Joined the WTO to write papers on local finance and countermeasures [J]. ECONOMIC Research, 2001, (26).

[4] WTO study group. WTO rules: Government Management Strategy [M]. Zhuhai: Zhuhai Publishing House, 2003.

[5] Cuizhen Long, Zhao Jun. Joined the WTO government audit institutions face the challenges and opportunities [J]. Chinese audit information and methods, 2003, (5).

[6] Wang Xinghua. Market functions combined with the features of [M]. Beijing: Economics Press, 1999.

[7] Xiang Junbo. China Audit System [M]. Beijing: China Audit Press, 1999.

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