Journal of Finance and Accounting

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Theoretical Annotation of China's National Audit System Change

Received: Jul. 04, 2019    Accepted: Jul. 26, 2019    Published: Aug. 13, 2019
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Abstract

Economic interests (economic rationality) and political interests (political rationality) are the dual goals pursued by political state in promoting structural reform. Improving the independence of the national audit as the premise in the national audit system reform, simultaneously not challenging the existing political system, in this paper we construct Pareto Optimality Model with “independence” and “political control ability” as the basic variables and “political state-economic society” as the basic stakeholders with dichotomy, draw Pareto Optimality interval of “political control ability” under the condition of considering transaction costs. Based on stakeholders formed by the national audit system reform in the past 30 years, we further decompose and integrate the stakeholders with dichotomy, and construct a dynamic model of the national audit system reform with the central government, local interest groups and the public as stakeholders, thus to explain theoretically the reform course of national audit system. As fundamental reform in the national audit system that exceeds the constraints of political system and historical tradition is unlikely to occur in a short time, in this paper we put forward promoting the internal optimization of national audit system under the existing political system framework to realize the interaction between good governance of the state and good performance of the national audit.

DOI 10.11648/j.jfa.20190704.11
Published in Journal of Finance and Accounting ( Volume 7, Issue 4, July 2019 )
Page(s) 107-115
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

National Audit, National Audit System, Pareto Optimality, National Governance, Institutional Change

References
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    Kangli Liao, Feng Wang. (2019). Theoretical Annotation of China's National Audit System Change. Journal of Finance and Accounting, 7(4), 107-115. https://doi.org/10.11648/j.jfa.20190704.11

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    Kangli Liao; Feng Wang. Theoretical Annotation of China's National Audit System Change. J. Finance Account. 2019, 7(4), 107-115. doi: 10.11648/j.jfa.20190704.11

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    AMA Style

    Kangli Liao, Feng Wang. Theoretical Annotation of China's National Audit System Change. J Finance Account. 2019;7(4):107-115. doi: 10.11648/j.jfa.20190704.11

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  • @article{10.11648/j.jfa.20190704.11,
      author = {Kangli Liao and Feng Wang},
      title = {Theoretical Annotation of China's National Audit System Change},
      journal = {Journal of Finance and Accounting},
      volume = {7},
      number = {4},
      pages = {107-115},
      doi = {10.11648/j.jfa.20190704.11},
      url = {https://doi.org/10.11648/j.jfa.20190704.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jfa.20190704.11},
      abstract = {Economic interests (economic rationality) and political interests (political rationality) are the dual goals pursued by political state in promoting structural reform. Improving the independence of the national audit as the premise in the national audit system reform, simultaneously not challenging the existing political system, in this paper we construct Pareto Optimality Model with “independence” and “political control ability” as the basic variables and “political state-economic society” as the basic stakeholders with dichotomy, draw Pareto Optimality interval of “political control ability” under the condition of considering transaction costs. Based on stakeholders formed by the national audit system reform in the past 30 years, we further decompose and integrate the stakeholders with dichotomy, and construct a dynamic model of the national audit system reform with the central government, local interest groups and the public as stakeholders, thus to explain theoretically the reform course of national audit system. As fundamental reform in the national audit system that exceeds the constraints of political system and historical tradition is unlikely to occur in a short time, in this paper we put forward promoting the internal optimization of national audit system under the existing political system framework to realize the interaction between good governance of the state and good performance of the national audit.},
     year = {2019}
    }
    

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  • TY  - JOUR
    T1  - Theoretical Annotation of China's National Audit System Change
    AU  - Kangli Liao
    AU  - Feng Wang
    Y1  - 2019/08/13
    PY  - 2019
    N1  - https://doi.org/10.11648/j.jfa.20190704.11
    DO  - 10.11648/j.jfa.20190704.11
    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
    SP  - 107
    EP  - 115
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20190704.11
    AB  - Economic interests (economic rationality) and political interests (political rationality) are the dual goals pursued by political state in promoting structural reform. Improving the independence of the national audit as the premise in the national audit system reform, simultaneously not challenging the existing political system, in this paper we construct Pareto Optimality Model with “independence” and “political control ability” as the basic variables and “political state-economic society” as the basic stakeholders with dichotomy, draw Pareto Optimality interval of “political control ability” under the condition of considering transaction costs. Based on stakeholders formed by the national audit system reform in the past 30 years, we further decompose and integrate the stakeholders with dichotomy, and construct a dynamic model of the national audit system reform with the central government, local interest groups and the public as stakeholders, thus to explain theoretically the reform course of national audit system. As fundamental reform in the national audit system that exceeds the constraints of political system and historical tradition is unlikely to occur in a short time, in this paper we put forward promoting the internal optimization of national audit system under the existing political system framework to realize the interaction between good governance of the state and good performance of the national audit.
    VL  - 7
    IS  - 4
    ER  - 

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Author Information
  • Accounting College, Jiujiang University, Jiujiang City, China

  • Accounting College, Jiujiang University, Jiujiang City, China

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