>Jiayi Liu
Study on the Auditing System of Socialism with Chinese Characteristics
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Study on the Auditing System of Socialism with Chinese Characteristics
CHIEF EDITOR
LIU JIAYI
Cover image: © Vasko/iStockphoto
Cover design: Wiley
Copyright © 2017 by John Wiley & Sons, Inc. All rights reserved.
The Commercial Press, China Modern Economic Publishing House, 2016 Translated by WANG Guozhen and YANG Xiaoyu.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
ISBN 9781119324706 (Hardcover)
ISBN 9781119328322 (ePDF)
ISBN 9781119328315 (ePub)
Preface
HOW DOES STATE AUDIT COME INTO BEING? What is its role in the national political system? What role does it play in national governance? How can the national auditing system better guarantee audit to play the fullest role? The answers to these questions determine the development course of state audit, and these are questions to which the audit organs of various countries must seek answers. The Lima Declaration of Guidelines on Auditing Precepts and the Beijing Declaration on Promotion of Good Governance by Supreme Audit Institutions, both released by the International Organization of Supreme Audit Institutions (INTOSAI), reflect a growing understanding of the importance of state audit and transformation from merely stressing independence to recognizing its essential role in achieving good national governance through supreme audit institutions. China has made its due contribution to this through its innovative practices in state audit. Under the leadership of the CPC, and with the guidance of the theory of socialism with Chinese characteristics, a state auditing system of socialism with Chinese characteristics has emerged reflecting these principles to guide state audit to become full of vigor and innovative vitality and plays an important role in promoting national governance and guaranteeing the healthy development of the national economy and society. Some of my international colleagues, who are also my friends, speak highly of the achievements China has made in this regard, including Mr. Josef Moser, former Secretary General of the International Organization of Supreme Audit Institutions (INTOSAI) and former President of Austrian Court of Audit, and Mr. Gene Dodaro, former Comptroller General of the United States. They have also urged me to sum up and tell them more about China’s state audit, including the theory, system, methods and experience. In accordance with the “mutually beneficial experience shared by all” concept upheld by the INTOSAI, my Chinese colleagues and I have tried to work on a book entitled Study on the Auditing System of Socialism with Chinese Characteristics based on research, study and practice of our auditing system for better communication. Hereby, I am writing this prologue for the book.
System, a product of the development of human civilization, undoubtedly is a foundation for building up the relationship of human society in regard to politics, economy, culture, etc., under certain historical conditions. The history of the development of human society is, in a sense, a witness to continuous efforts featuring constant exploration, repeated tests of ways and means for addressing errors that invariably appear in work, and bold reforms, with the ultimate aim being introduction of a new system conducive to further self-development. China has made great achievements since the reform and opening up, a program introduced in late 1978, thanks to the innovation in its system. The auditing system of socialism with Chinese characteristics, an important part of the overall socialist system with Chinese characteristics, developed from scratch and has gone on to achieve full maturity. During this process, China’s state audit has developed to cover public funds, state-owned assets, state-owned resources, and leading officials’ economic performance. As a result, the potential risks, outstanding problems and institutional obstacles are revealed in a timely way and dealt with effectively. All these point up to the fact that state audit has become an important force in promoting and improving national governance, becoming the cornerstone and important guarantee for the modernization of the national system of governance and its associated capabilities.
The state auditing system of socialism with Chinese characteristics is based on national conditions, hence reflecting distinctive national characteristics of the times. It came into being and saw various improvements on the basis of China’s historical heritage, cultural traditions, and economic and social development and endogenous evolution over a long period. It is well adapted to China’s national situation and fundamental political and economic systems. The theoretical system of socialism with Chinese characteristics provides an appropriate theoretical basis for the introduction,
