Discuss The Benefit And Limitation Of Audit?


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The constraints of the audit role; audits were performed by exposing and suppression, penalties and other means to restrain the economic activities of various negative factors, contribute to the proper implementation of various economic and socio-economic responsibility for the healthy development of
  1. Expose a departure from the socialist orientation of business activities. The party and state principles and policies and regulations system is one of millions of enterprises and institutions operating in accordance with the guarantee of socialism in the right direction. State organs, enterprises and institutions can be faithfully implemented, we can guarantee the right business direction, otherwise, it will deviate from the socialist orientation. Audit by examining the supervisor will be able to find the audited unit implement policies and regulations of the system, we can expose and stop the acts of violation of national laws and regulations in order to facilitate the healthy development of socialist economy
    2. Expose the economic data errors and fraud. And accounting data and other types of economic data, it should be true, accurate, reasonable and lawful manner to reflect the fact that economic activities. But many units of economic data is not only there is an error, but deliberately fabricated the existence of the phenomenon in an attempt to cover up the illegal economic activity. Through the audit of the inspection and supervision, not only economic data can reveal errors and fraud, but also expose the economy of business errors and fraud, thereby further investigate the relevant responsible persons and to examine the management personnel, political and professional quality.
   3. Exposed the economic life of the various unhealthy trends. Both the fiscal and financial auditing, or cost-effective audit, are available through examination and supervision of economic activities that expose the community a variety of improper economic relations, economic thinking and economic behavior, make the necessary treatment of the views put forward correct , stopped unhealthy tendencies, promoting clean government.
   4. Cracking down on economic crimes. A variety of audits, especially of fiscal and financial audit, you can find and identify corruption, theft, bribery, bribery, tax evasion, tax evasion, tax fraud, smuggling, false accounting, chemical budget for the budget, of the Grand Duke of small public and the public for the private, as well as losses and waste and other economic crimes, and in line with the party's discipline inspection work, administrative discipline and supervision, the courts, the prosecution of judicial investigation, as well as various ad hoc inspection work carried out verification and identification in order to give full play to the audit of the unique effect.
(B) promoting the role of the audit: Audit through investigation, evaluation, recommendations and other means to promote the service of macroeconomic regulation and control, the promotion of micro-economic management in order to help national economic management and performance improvement.
   1. The promotion of economic management and economic efficiency improved. Through financial audit financial audit and cost-effectiveness, we find that affect the financial results and cost-effectiveness audit of various factors, and address where the problem is practical and feasible improvement measures, thus facilitating the audited units to improve the material and technical conditions and personnel the quality of management, and further tap the potentials and increase economic efficiency.
  2. To promote the construction and improvement of internal control system. The internal control system through audit and evaluation of the system itself can be found degree of perfection, fulfillment and accountability on issues such as feedback to the parties concerned in order to facilitate the further improvement of the internal control system and the correct implementation.
  3. To promote the healthy operation of socio-economic order. Audit departments, as of all state-owned assets supervision department, through the micro-and macro-audit investigations, can be found in a number of irregularities in the socialist economic life and the destruction of normal economic order phenomena and behavior, audit institutions and personnel not only to the leadership and macro-management services to reflect the obligations of information, but also made dealing with the power of ideas and improvements, which help maintain normal economic order, and ensure the healthy development of the national economy.
  4. Promotion of relations between the economic interests of the proper treatment. Whether micro-or macro-audit survey can be found in dealing with national, regional, collective, and individual relations between the economic interests of the problems. The existence of these problems, some units and individuals to obtain a number of improper economic benefits, but also dampened the enthusiasm of some people, but also seriously damaged the national interest. Audit through information feedback and make some improvements, facilitate the coordination of all aspects of the relationship between economic interests, so that responsibility, rights, and interests more closely integrated in order to help micro-economic contradictions in the settlement and the strengthening of macro-control work. Western scientists believe that the audit, the audit is to build a clean government a powerful tool, we can see that auditing is not only conducive to China's economic system of the building, for the building of the socialist political system will also play a greater role. (Source: China Audit Press: Auditing Principles).

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