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The Important Role of Audit in Promoting National Governance in China
2011-12-16日   Soure : :

The Important Role of Audit in Promoting

National Governance in China

Liu Jiayi,Auditor General of the National Audit Office of P. R. China

National Governance is the control over, management of and delivery of service for national and social affairs through allocating and operating of state power, with the aim of protecting interests of the state, rights of the people, maintaining social stability, safeguarding national security, and achieving sustainable development of the country. In this process, the state entrusts the power and responsibilities on the allocation, management and application of public resources to certain public institutions and their representatives,

In addition, the State authorizes procedures in the form of legal provisions to oversee the execution of power and fulfillment of responsibilities by the institutions to whom the powers have been assigned. One such oversight activity conducted by a special institution is national audit. National audit originates from the needs for ensuring national governance; the targets of national governance highlight the future orientation of national audit. Auditing is an indispensable component of national governance and an important check and balance on execution of power by institutions in accordance with the law; by its nature, auditing serves as the immune system ensuring healthy economic and social development.

Based upon these thoughts, the National Audit Office of China (CNAO), like SAIs in other countries of the world, has played an important role in promoting national governance by performing its audit functions from the following perspectives:

----Serving as the Check and Balance of Powers in the National Power Structure

CNAO carries out audits and special investigations in all departments and agencies managing public funds and all projects and items where public funds are used. CNAO conducts accountability audits of the public activities or business of leaders of Party committees, governments, public institutions and social organizations, as well as legal representatives of state-owned enterprises and enterprises with the state as the controlling share holder, with a view to promoting regulated power allocation and accountable operations.

----Providing Timely, Objective and Reliable Information for Rational Decision-making

CNAO pays special attention in all its audits to gathering information and making analysis and reporting on the execution of relevant state policies and measures and the management of major construction projects. This provides an important basis and support for the State to make decisions for improving macro-control policies and intensifying management of public investments, in order to promote the implementation of various policies and measures for national governance.

----Disclosing Weak Links and Risks in the Management of Programs for Economic and social development

CNAO’s audits are conducted in all areas of government activity. They include programs in fields such as energy, strategic resources, the operation of public finance and the economy, state information, local government debts, internal governance and regulation of public financial institutions, security of national assets, business risks of small and medium-sized enterprises, and provide timely and reliable information for ensuring decisions on national economic security.

---- Focusing on People’s Livelihood and the Protection of Resources and Environment

CNAO has strengthened its audits of the projects and funds related to agriculture, rural development, livelihood of farmers and city low-income people, education, medical care, housing, social security and environmental protection. CNAO audits facilitate the implementation of various policies and measures for the benefit of the people and the achievement of the planned results of government programs.

----Disclosing Systemic Problems

CNAO reports disclose problems from the perspective of system, mechanism and institutions and make recommendations for deepening reform and strengthening management based on thorough analysis with the aim to improve the systems and promote innovative national governance.

----Disclosing Violations of Laws and Regulations and Power Abuse Activities

In accordance with its legal responsibilities, CNAO plays an active role in combating corruption and has effectively promoted the rule of law and governance processes by institutions that accord with the law and best practice.

----Practicing Open Reporting of Audit Results and Related Audit Information

CNAO has a policy of open reporting and public announcement of audit results. These practices help ensure the public’s right to information about government activities and right of participation in governance of the nation.

As the pace of globalization and scientific and technological progress accelerates in every aspect of life, SAIs are confronted by a number of complex challenges and difficulties when playing their roles in promoting national governance. To help us meet these challenges, the communication and cooperation among SAIs should be strengthened to share their good practices and experience in promoting national governance under the INTOSAI motto Mutual Experience Benefits All, and to achieve common development of the national audit function in the global arena.