What Is a Fiscal Audit?

Fiscal audit is the review and inspection of whether the whole process of financing, supply and use of fiscal funds is reasonable, legal, effective and normal. It mainly includes state budget and final account audit, tax audit, capital construction finance and credit audit, and state-owned enterprise financial audit. National budget and final account audit, also known as government audit, is the supervision and review of fiscal revenue and expenditure activities and their status and accounting matters. Tax audit is an audit of taxes paid by enterprises and institutions and individuals by financial and tax authorities. Capital construction finance and credit auditing is the supervision and review by the finance and construction banks of the capital construction investment budget, financial income and account processing. ^[1]

Financial audit

Fiscal audit is the review and inspection of whether the whole process of financing, supply and use of fiscal funds is reasonable, legal, effective and normal. It mainly includes state budget and final account audit, tax audit, capital construction finance and credit audit, and state-owned enterprise financial audit. National budget and final account audit, also known as government audit, is the supervision and review of fiscal revenue and expenditure activities, their status, and accounting matters. Tax audit is an audit of taxes paid by enterprises and institutions and individuals by financial and tax authorities. Capital construction finance and credit auditing is the supervision and review by the finance and construction banks of the capital construction investment budget, financial income and account processing. ^[1]

According to China's current financial management system and the organizational system of audit institutions,

Article 91 of China's Constitution and Article 4 of the Audit Law clearly stipulate that audit institutions should

Review my country

Under the leadership of the Party Central Committee, the State Council and local governments, audit institutions at all levels in our country conscientiously implement the party's line, principles, and policies, actively practice them, explore them creatively, and carry out creative financial audits. For the purpose of rectifying the economic order, we must take strict financial agency laws ,strengthen

China implements an audit supervision system for national fiscal revenues and expenditures, strengthens the status of audit supervision in national financial and economic work, improves and improves the government audit supervision mechanism, improves the level and level of audit supervision, establishes the authority of audit institutions, and advances audit work. Moving towards legalization, institutionalization, and standardization has important practical significance and far-reaching historical significance.

Need for comprehensive supervision

Prior to 1995, China's fiscal revenue and expenditure audits were implemented under a single "up-to-down" system, and auditing agencies at this level did not conduct audit supervision of budget implementation at that level. However, from the audit practice point of view, the audit found that the government departments at the same level and the financial departments at the lower levels violated the financial system, and many of them were caused by the financial departments at the same level; It reflects the deep-seated problems in financial management, and then puts forward suggestions in terms of policy systems and management mechanisms.

After the "Audit Law" was promulgated and implemented, auditing agencies must not only audit and supervise the budgetary implementation and final accounts of lower-level governments, but also audit and supervise the budgetary implementation of their own levels. In this way, the previous system of up-to-down and down-to-down has been transformed into an audit supervision system that combines up-to-down and down-to-up, which has expanded the field of financial audit, strengthened the intensity of financial audit, and formed a Ways of auditing and supervising government revenue and expenditure at different levels and from different angles. In this way, it is not only conducive to serious discipline of finance and economic law, to maintain the unification of the government's decrees, but also to help governments at all levels to comprehensively understand the implementation of the budget and its problems, and to take timely measures to strengthen budget management. At the same time, it is also conducive to strengthening the budget unit. Management to improve the use of financial funds.

The need to strengthen macro-control

Under the conditions of a socialist market economy, because the market mechanism plays a fundamental role in the allocation of resources, the government's function of managing the economy is mainly dedicated to macroeconomic regulation. By using fiscal and monetary policies, it creates a good environment for economic development and promotes social development. Optimal allocation of resources. As an important means of government's macro-control, the effective play of its functions is directly related to the realization of the government's macro-control objectives and the sustained, rapid and healthy development of the national economy. As a high-level supervision, the main task of audit supervision is to support and promote the implementation of government macroeconomic control policies. To strengthen national macroeconomic management services, it supports and promotes government fiscal departments and other budgets through audit supervision of national fiscal revenue and expenditure. The executive departments effectively perform their duties in accordance with the law, promote the better realization of financial functions, and meet the requirements of establishing a socialist market economic system.

The need for the NPC Standing Committee to strengthen supervision

According to the "Budget Law", the National People's Congress and its Standing Committee review and approve the central budget and final accounts, and supervise the central and local budgets and final accounts; local people's congresses at and above the county level and their standing committees Review and approve budgets and final accounts at the lower levels, and supervise budgets and final accounts of the governments at the lower and lower levels. After the "Audit Law" was implemented, the budget execution audit became a necessary and powerful means for the People's Congress to supervise the government's fiscal revenue and expenditure. The audit work report submitted to the People's Congress has become an important basis for the People's Congress to evaluate the implementation of government budgets. Better exercise of supervision over government revenue and expenditure.

The need to be in line with international practice

At present, from the perspective of countries with a market economy in the world, whether the audit agency is subordinate to the parliament or the government, or independent of the parliament or the government, the main task of the audit agency is to audit and supervise the fiscal revenue and expenditure of its government , Submit an audit report to the legislature. China's audit of the implementation of the government budget conforms to the practice of the international audit system. It is not only an objective requirement for the development of a socialist market economy, but also a necessary guarantee for the soundness and improvement of the socialist market economy system.