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CNAO’s Major Achievements in Government Auditing
2015-07-16日   Soure : :

 

I. Continual improvement of auditing system

Over the past three decades, CNAO made great efforts to develop and improve an auditing system with Chinese characteristics, giving full and effective play to its functions of audit and supervision.

   

  The scope of government auditing was further expanded to include the implementation of major policies, state assets, state-owned resources and the accountability of party and government leaders, covering such sectors as public finance, government departments and agencies, state-owned financial institutions, state-owned enterprises, foreign funds and investment, etc. The number of auditees covered by audit annually has increased from about 1,200 in 1983 to more than 140,000 at present.

  Audit priorities have shifted from financial audit and compliance audit focusing on truthfulness and lawfulness of accounts to performance audit highlighting the efficient use of funds. Increasing importance has been attached to regulating expenditure and improving the effectiveness of public funds. Government auditing has made an evolution from simple error detection and correction to regulating budget implementation, enhancing public finance management, and serving the government efforts in strengthening macroeconomic management and deepening restructuring of public finance.

  Our audit work focuses on two aspects. On the one hand, our audit institutions recovered huge amount of economic losses for the country by combating corruption and disclosing problems of major violation of laws and regulations, major losses and waste, potential risks, and mis-conducting duties; on the other hand, we also provided relevant departments with recommendations on system improvement and deepening reform to promote reform, rule of law and better value for money.

  In organizing audit work, we follow an integrated pattern to concentrate the resources of all the audit institutions under coordinated planning. In recent years, the same audit workforce conducted a number of major audit projects in addition to our annual audit assignments, such as national government debts, in-stock fiscal funds, social security funds, revenue and expenditure of land transfer funds, farmland protection, and so on. The better management pattern enabled broader coverage of auditees.

II. Constant development of guiding principles for auditing

In recent years, innovative ideas on the role of government auditing have been introduced to CNAO to guide audit practices based on understanding that auditing is an important part of national political system, a vital channel for the check and balance of powers in accordance with the law, and a cornerstone and important assurance to national governance.

Auditing in nature serves as an immune system to safeguard the healthy operation of the economy and society featuring functions of prevention, exposure and resistance. In performing the function of prevention, auditing checks the implementation of laws, regulations and policy measures, and assures the lawful, compliant, truthful and complete management and use of public funds. In performing the function of exposure, auditing discloses and deals with violations of laws and regulations to ensure management and use of public fund open, transparent, hones and safe. The function of resistance is performed in that auditing identifies the causes for fund management problems at systematic and procedural levels, offers proposals for improvement to ensure efficient and sustainable management and use of public funds.

  The ultimate objective of auditing is to safeguard the fundamental interests of the people. At the present stage, auditing must make the aim of “advancing rule of law, maintaining the people’s wellbeing, promoting reform and facilitating development” as the starting point and final goal.

  The primary task of auditing is to safeguard the security of the state. At the present stage, the task is to safeguard economic security and interests of the state, enhancing democracy and rule of law, promoting sustainable development in a comprehensive and coordinated way.

III. Fruitful results of audit practices

Ever since 2012, audit institutions in China have earnestly fulfilled the responsibilities of audit in accordance with the law, focusing on the priorities of the Party and the government with a view to promoting good national governance, and have achieved fruitful results in the following aspects:

  Assuring resolutions and decisions are carried out effectively, and steady, rapid economic growth through strengthened efforts in practicing real-time audits on the implementation of major policies and measures adopted by the central government. These audits covered more than 10,000 key projects, some conducted on a real time basis, include:

the Three Gorges,

the South-to-North Water Diversion,

the West-East Electricity Transmission,

the Lushan post-earthquake rehabilitation and reconstruction etc.;

Besides, special audits of management and utilization of conference expenditures of 52 departments and expenditures on overseas business trips of 51 departments respectively; real-time audits of the implementation of policies and measures on stabilizing the economic growth, and so on, were also conducted.

  Disclosing prominent social-economic problems and potential risks to uphold national economic security. Audit institutions paid close attention to and exposed some emerging and tendentious problems in the fields of public finance, financial systems, investments and state-owned assets management. In 2013, CNAO organized over 50,000 auditors nationwide to carry out a comprehensive audit over national government-related debts. This audit made fruitful results in that it produced the real scene of government borrowings, exposed the relevant risks and put forward recommendations for improvement. The audit also played an effective role in standardizing local government financing mechanism and preventing financial risks.

  Promoting social harmony through enhanced efforts in auditing key projects and fundsrelating to the people’s well-being. Since 2012 audit institutions nationwide have conducted over 40,000 auditing projects involving agriculture, rural area and farmer issues, education, medical care, housing, social security, and so on. These audits identified irregular funds totaling over RMB 69 billion Yuan and ensured allocation of targeted funds totaling RMB 162.4 billion Yuan.

  Serving ecological progress by reinforcing environmental and energy /resources audit. Since 2012, CNAO has audited the implementation of policies onenergy saving and emission reduction, government activities in exploration and utilization of mineral resources as well as the collection and management of corresponding funds, revenue and expenditure of land transfer funds, farmland protection, and so on. These audits promoted proper implementation of government policies and measures and ensured  relevant government funds were used in a safe and efficient manner.

  Strengthening accountability and restrictinguse of power. Since 2012 audit institutions at various levels have completed accountability audits of 100,000 leading persons, of which  87 officials at ministerial level were audited by CNAO.

  Successfully fulfilling United Nations Board of Auditors and other overseas audit responsibilities. With China as a member, the board of auditors promoted budgetary reform and performance audit in the UN. During China’s tenure, the Chinese auditors completed nearly 200 audits of more than 20 agencies and organizations including the General Secretariat of UN,saving over USD 500 million through revenues increase and expenditure reduction, with over 500 rules and regulations newly made or improved. The contributions of China won high recognition of both UN and the public.

  Combating corruption by paying more attention to investigating and dealing with major violations of laws and regulations. Since 2012 audit institutions nationwide have transferred over 450 cases of major violations of laws and regulations to relevant authorities, involving RMB 660 billion Yuan and 4,800 people. Audit efforts helped recover economic losses and served as an effective deterrent.

  Fostering innovation and deepening reforms by providing recommendation aiming at systemic improvement based on thorough analysis. Audit institutions at various levels audited over 380,000 entities since 2012 saving RMB 1 trillion Yuan through revenues increase and expenditure reduction, with 15,000 rules and regulations improved.

  Promoting socialist democracy and rule of law by actively increasing openness and transparency of government affairs, rectifying problems disclosed by audit and improving law and regulations. Ever since 2012, audit institutions at various levels have raised recommendations on the formulation and revision of over 200 laws and regulations, made rectification of the problems discovered through audit a local government responsibility. Various departments and localities have already drawn up around 55,000 rectification measures accordingly. Audit institutions at various levels have released over 24,000 reports of audit results to the public.

IV. New breakthroughs in various areas

In order to do a better audit work, government audit institutions in China have successfully improved the overall quality of the auditor workforce, promulgated comprehensive regulations and guidelines for auditing, applied information technology, promoted audit theoretical research and advanced cultural development in audit institutions.

  Asystem of examination and certification for professional qualification of auditors has been put in place.  

  Aworkforce lifelong professional training system has been built, including a training center in charge of training matters, an continuing education institute for auditors in Nanjing and a training facility in Huairou District of Beijing.

  Anational level institution of higher education—Nanjing Audit University, was jointly founded by CNAO and Jiangsu Provincial Government, with a total staff of about 1,200 and total registered students of about 15,000.

  At present, CNAO has established an audit law and regulation framework, with the Constitution as basis, the Audit Law and the Regulations for the Implementation of the Audit Law of the People’s Republic of China as core and auditing standards as professional guidelines.

  The Golden Audit Project, an important part of IT Development Scheme of China, is now under further construction by CNAO. In 2005 and 2012, the first and second phase of the Golden Audit Project passed the verification and examination of the state respectively. A national audit IT system has been initially established.

  The Audit Museum was built in Nantong City, Jiangsu Province.

  CNAO places high emphasis on publicity of audit work and operates several communication channels including: the China Auditing Newspaper Office which publishes CNAOs institutional newspaperChina Auditing Newspaper; China Modern Economic Publishing House, which publishes the semimonthly journals of Auditing in China, Selection of Laws and Regulations on Audit/Finance/Economics of P. R. China and Yearbook of Auditing in China; and the website of CNAO (http://www.audit.gov.cn).

In the coming years, CNAO will further improve its audit system guided by the central tasks of “combating corruption, reform, rule of law and development”. It will also exercise its power of audit independently in accordance with the law, push forward reform and innovation, and bring the role of government auditing in serving good national governance into full play.