International Journal of Auditing – July 2010
Liu Jiayi
Auditor General, National Audit Office of the People’s Republic of China
In China, audit is considered an indispensable part of the national political system. It is a product of, and a means of promoting, democracy and the rule of law. It is also an important tool for upholding the security of the national economy. It functions like an immune system for the economy and society. The body’s immune system recognizes foreign and abnormal cells and destroys them. In the same way, audits reveal existing problems, proactively prevent others, and promote resistance throughout the entire system of government by ensuring that taxpayers’ monies are managed and spent properly. On behalf of the general public and in accordance with the law, auditors (1) monitor the performance of various levels of government and their respective departments, along with other organizations that have access to taxpayer money, and (2) report audit results to the general public. During this process, auditors detect wrongdoing and make corrective recommendations, investigate and deal with serious violations, promote efforts to combat corruption, and safeguard the orderly operation of the economy. They also reveal institutional problems and systematic deficiencies, promote reasonable deployment and efficient utilization of public resources, ensure effective implementation of important government economic policies and measures, and safeguard national economic security.