Certified Public Accountant in on the thinking of rural financial audit

Abstract: The chaos in rural Financial Management requires an objective to strengthen auditing and supervision of rural finance, agricultural departments led by the audit model has many deficiencies in rural areas, while the CPA has a unique advantage compared. Should consider the introduction of certified public accountants to rural financial audit area of oversight, really play the role of rural financial audit oversight, and promote the healthy development of the rural economy.

First, the confusion of the rural Financial Management requirements strengthen auditing and supervision of rural financial problem has always been difficult to work in rural areas, most farmers are also the focus of attention and focus, and the people's interests are closely related. As the quality of personnel in rural areas and mechanisms, and many other factors, rural finance Management and supervision are still many problems in rural areas of rural finance has increasingly become the focus of .11 many contradictions in the system and rural Financial Management mechanism is not sound Financial Management systems, and in the financial and capital management is not a practical management system, the lack of more rigorous internal control mechanisms, financial work without a clear division of functions, accounting information more dispersed. system is not sound Financial Management is a result of confusion, mainly in the following areas: (1) basis of accounting confusion. Accounting Subject is not perfect, not standardized set books. Some village general ledger, subsidiary ledgers, regardless of the cash accounts, deposits mixed in mind, some only set general ledger, did not establish the appropriate breakdown of, or only accept cash, deposits subject, not a fixed set assets and fixed asset register subject not located between accounts payable and internal breakdown of income and expenditure are in cash, deposits reflected, there long established accounts, extra accounts, small treasuries, etc., but accounting is not timely, Report inaccurate. (2) Accounting original data is not standardized. Some of the financial operations of the village still use traditional methods of income over expenditure, the lack of sufficient original documents and replace them with home-made from the branches of a large number of white bars, receipts and claims, white bars accounted for, white bars arrived in libraries, to support the collection of widespread. incomplete elements of income and expenditure documents evidence, not receiving a receipt. in the use of vouchers, duplicate number, the number of the attached original documents and the actual number is not match and so on. (3) the accounting treatment is not correct. accounting treatment is not correct village financial work is the most common mistakes, but also many important issues, the crux of hot issues, specific performance: First, do not use accounts reasonable; the second is the continuity of the accounting work is not strong. (4) assets are mismanaged. capital management confusion, borrow large arrears. incomplete material management procedures, asset losses. village cadres, the number of collective assets of the village is not clear, property after the discarded material does not reflect on the accounts; or to collective property as private property or material goods for processing, long-term collective assets are not yet occupied. (5) false claims. its expression: first, false invoices, often the IOUs as a reimbursement certificate, or even the next year without the approval of invalid documents is not wrong according to report; the second is illegal documents, false invoices or false by the number and improve the unit's practices claims; Third, repeat the reimbursement of costs; Fourth, should not reported that the cost reimbursed by illegal means, which in most hospitality in fraud case; Fifth, altered documents, made notes, the overall quality of financial officers pocketed .21 poor financial management team of instability in rural areas often have no formal education or systematic training, usually specified from the villagers, so the business and generally poor quality of professional ethics, appearing in the daily financial management of accounts such as the account does not match the account does not deserve, general ledger, injustice, or year-end closing time is not accounted for, are not Invoice accounting rules, set up illegal accounts, collective funds are misappropriated, diverted, and other serious violations of financial laws and regulations of the phenomenon. accounting team instability, constant change in financial officers, accounting, followed by village cadres to go, replaced more frequently, resulting in professional and financial work of the village poor continuity, there has been more than money, and people in charge of money, people with money, do not settle accounts, are not accounted for .31 and other outstanding issues weaken oversight, corruption is serious because the masses of rural management oversight and financial control of village and audit of the lack of village cadres more serious corruption. As village-level financial management is chaotic, irregular accounting practices, financial democracy in name only in the case of misappropriation of public funds always be possible. common practice is through the form of losses are , borrowing for long periods also called borrowing actually misappropriated. village cadres free to withhold income as little treasuries, finance is not usually open, closed revenue and expenditure, in order to meet the higher level examination, set two reports, two accounts, real ones. taxes do not follow the policy of sharing, many leading cadres taking advantage of grants during his tenure. a small number of village cadres abusing their power dividing the collective property, the village-run enterprises are not recorded or less the product accounted for by the way, the dividing, suffered splitting, sub- money was serious matter.

Second, the rural agricultural sector led management audit of the audit, there are many rural areas is the lack of agricultural administrative departments at all levels approved the establishment of the audit station in rural township (town) and village collective economic organization and its subordinate units of the asset management, financial revenue and expenditure and extraction, the use of farmers and labor costs to a comprehensive audit of the state and township enterprises and other relevant departments in conjunction with the possession, use of assets of the rural collective economic organizations to conduct a special audit. rural audit does not belong to the scope of the government audit. Rural Audit Financial institutions rely on state funding, the administration does not pay taxes based institutions, at the same level of agricultural administrative department under the leadership of the main person in charge of the work. rural audit to audit and supervision as the main function, there is a scheduled routine audit , according to reports from the public by the commission or conduct of the audit, regardless of whether the audited entity or individual consent, have the right to enforce its audit. dominated by the agricultural departments in the largely rural audit the financial management of the rural norms, so that financial management in rural areas gradually to the direction of normalization and standardization in the protection of their rights and interests, and promote the healthy development of the rural collective economy has played an important role, but because of the system and other factors, there are many problems in rural areas and audit deficiencies. 11 not meet the audit system in rural areas to carry out audit work in rural areas rural audit by the county authorities assume the rural economy, economic management institutions at the county level are mostly rural stations (Division) level Institutions and specifications of the low, heavy task coordination difficult, implementation difficulties, the lack of authority; rural financial audit work on the local budget, because of the local financial difficulties, the audit can not guarantee funding, has seriously affected the normal development of audit work in rural areas. auditors without preparation, are part-time administrator of the rural economy . institutional reform, the relevant towns, the streets are located in rural economic management, specifically with the establishment. But there are many towns, streets administered by the department, the staffing was not occupied by other departments, staff and other departments that use mixed Kong , true professionals who administered the work of few people, some only administered by the owners of a person, a serious impact on rural financial supervision and management of rural collective assets caused by the low quality of audit work, supervision and management of the rural economy in rural areas difficult to carry out .21 Auditors audit the overall low quality of the rural characteristics of the decision of the auditor must have rich knowledge of audit and accounting, legal and other related knowledge. But now, the professional quality of auditors in rural areas, policies, uneven level: they have secondary school graduates, a cooperative economic organizations in the village engaged in accounting work, there are towns transferred to other departments, but also a lower education level leading cadres of the family and relatives and so on. a considerable part of the party in the auditors the economic policies in rural areas, rural financial management rules and regulations and accounting professional and technical knowledge of rural Debu skilled master, it needs from the difference between the actual operations of the audit of the environment in rural areas far .31 First, the rural poor statistics non-standard work, too much false information. Some township cadres to show their work performance, instruct staff in statistics and statistical reports false, exaggerated performance. Second, the audit agency horizontal linkages in rural areas is too small, if public security and other departments with less, they face the rural sector auditors in the audit report issued, the legal effect of .41 is often suspected of cooperative economy in rural areas of internal audit work is difficult and more rural cooperative economic organizations, the auditors less, people need problems can not be disposed; need a wide range of audit work, including the township (town) cooperative economic organizations, village, group of cooperative economic organizations, rural enterprises do; most villages there "account bag", "piles of accounts" phenomenon some even free accounts to be investigated, resulting in the audit of financial supervision in rural areas increased the difficulty .51 mere formality democratic financial system exists in name only, no regular financial disclosure of the actual content. at the higher level, financial revenue and expenditure bills village by village community should be democratic management team reviewed before recorded, and is conducted quarterly financial disclosure, but many village are excluded under various pretexts, the Democratic supervision of financial groups, financial groups and some Democratic primary by the village cadres, relatives and friends worked hard to play supervisory role. reposted elsewhere in the Research Papers Download http://www.hi138.com
Third, the CPA has a unique advantage in the rural areas the audit department of agriculture led the audit, there are many deficiencies in rural areas, can be introduced CPA financial audit and supervision in rural areas, rural areas at this stage, the existing audit system as a supplement, when the conditions considered as the main form of supervision of rural financial audit. In rural areas the need for routine financial audit, special audit, cadres leaving the audit and audit related to economic cases, the higher levels of government or administrative department to hire accounting firms involved as intermediaries audit, and audit accounting firm within certain powers granted to facilitate forensic audit firm to carry out audit work. and agricultural departments in rural areas dominated by the audit than the certified public accountant in the rural areas has its unique advantage of the financial audit .11 do not take preparation, financial expenditure is not included in the department of agriculture established under the auspices of audit institutions in rural areas rely on the administration of state financial allocations based institutions, the auditors into the business establishment. to maintain the normal operation of audit institutions in rural areas need a fixed expenditure, including not only the audit staff salaries and various security, but also funding for the audit work, and these costs and expenses are included in the local financial budget. The current situation is that local government debt burden, the government just to maintain There are difficulties in daily functioning. If the CPA into the field of audit and supervision of rural finance, rural finance in the need to hire an accounting firm to audit the audit, the Government and competent authorities only pay for the audit expenses, eliminating the need to maintain the rural Audit agency costs, which local governments in financial difficulties is undoubtedly useful, but also adapted to the requirements of Local Government Reform .21 with professional knowledge and skills, higher quality agricultural departments in rural areas led the audit, the audit staff composition more complex, and the lack of systematic professional learning and training, knowledge base and skill level of the lower face of complex and difficult situation in rural areas is difficult to audit for effective auditing and supervision. registered as a professional audit staff accountant with the system of professional knowledge, rich auditing experience, high skill level, to the use of professional audit staff with professional advantages to develop practical audit programs, the use of standardized audit procedures, come to regulate the audit conclusions, highly-targeted audit opinion really play the role of audit and supervision. In the face of evidence appear in the audit of difficult issues such as the CPA can use their rich experience in audit and take appropriate audit approach to ensure the smooth progress of the audit. for the financial management of the rural financial system appears irregularities, the audit evidence through the completion of the audit, the CPA can take advantage of professional financial and accounting knowledge to guide village establishment of a standardized financial management system and internal control system, financial system set up so that can really play a regulatory rural finance, The role of supervision and financial management in rural areas, really play the supervisory role of the audit status .31 audit more independent, more objective and fair and credible public accounting firm engaged by the Government as the audit institutions at higher levels in the rural financial audit, the CPA is not a government business establishment, especially the grassroots level with government officials and village cadres and township governments have no direct interests of the contact time of the audit the status of their audits more independent. and as higher levels of government to employ the auditors to audit, certified public accountants within the scope of the audit has also been given certain powers, so in the course of the audit, the cross-cutting departments to communicate evidence of the resistance and obstacles is relatively small, reducing the interest and the relevant departments involved, the audit can be more smoothly, the audit findings will be more objective and justice. particularly during the exit audit and audit work related to economic cases, the accounting firm of intermediaries to the maximum degree of identity of the audit objective and fair. the independent certified public accountants audit the status of the audit objective and fair to ensure the credibility of audit findings, so that the audit results more authoritative .41 can adapt to the audit of tax reform in rural tax reform, the rural collective economic organizations as the main source of the townships and village reserve to cancel, but audit is the main target of rural collective assets management in rural areas and rural economic organizations balance of payments. village reserve money is only a small part of the collective assets, the collective assets also include a variety of natural resources and fixed assets. higher transfer payments to the financial benefit the village section of the ownership and use has not changed, still belongs to rural collective economic organizations, the supervision of their use in rural areas is still an important part of the audit. In addition, with the overall progress of the new rural construction, agriculture funds auditing, FAO production capital subsidies and related audit and the relevant financial audit of the rural social undertakings in rural areas will be the focus of financial auditing and supervision. where the small firms not only have professional knowledge and skills, able to provide effective rural financial audit quality assurance; Because of the geographic superiority, close to the rural areas, a better understanding of rural practice, familiar with rural policy, the audit opinion can be combined with existing problems in rural areas, with a highly targeted and high feasibility, and the size of the firm more compatible with the needs of the rural financial audit, at any time according to the audit commission, which can adapt to the new rural tax reform and the process of building the need for audit work in rural areas.

References:
[1] Ao power cloth, Yue-Ying Wang a financial audit of rural problems and countermeasures [J] 1 front, 2001, (6) 1
[2] Magen Long a strengthening of rural financial auditing and supervision for village-level financial Standardization [J] 1 Rural Finance & Accounting, 2003, (12) 1
[3] Feng Tian 1, the financial management of the rural situation and countermeasures [J] 1 ECONOMY AND SCIENCE, 1998, (5) 1
[4] Huang Tao 1, Financial Management of Rural [J] 1 1 farmers in rural agriculture (A), 2005, (6) 1
[5] Liao Shuqiong 1 to play the role of audit and supervision to strengthen financial management in rural areas [J]. Yunnan Agriculture, 1999, (6) 1
[6] Zhang Yanting, Song Jinxiu a strengthening of rural financial management of several issues [J] 1 Shandong Agricultural Management Institute, 2005, (2) 1
[7] Zhao Zhiming, Wu Guozhi a CPA financial audit and supervision of rural areas into thinking [J] 1 China Certified Public Accountants, 2001, (7) 1
[8] Chen Huaimei, Xia Hongwei, Suen, Ren Dongsheng 1 current rural financial management problems and countermeasures [J] 1 Shandong Agricultural Management Institute, 2004, (5) 1
Links to Research Papers Download http://www.hi138.com