The Auditing and Deliberation System of Government Financial Statements in Taiwan
Date Issued
2011
Date
2011
Author(s)
Liu, Li-Lin
Abstract
In recent years, the government budget deficit has become worse In Taiwan. Meanwhile, government agencies couldn’t adequately assign and evaluate the limited resources in advance, resulting in inefficiency, inappropriate allocation of resources, and abuse of public funds. Furthermore, the public has paid more attention to the government performance after democratization. Hence, while pursuing the administrative achievements, the government has to solve the following burning issues:1)strengthening the evaluation mechanism for budgetary outcomes, and focusing more attention on efficiency and effectiveness of budge implementation.2)avoiding overlapping and wasting of resources.3)disclosing financial information timely.
In Taiwan, the external supervision of government budget implementation is executed by National Audit Office to assure its legitimacy and efficiency. As to budgetary outcomes, its procedures of auditing and deliberation are as follows: First, upon the submission of the Central Government annual financial statements by the Executive Yuan, the National Audit Office shall complete its audit and have its audit report submitted to the Legislative Yuan. Then, the Legislative Yuan may hold several meetings to deliberate the report. Moreover, the Control Yuan may propose an impeachment and written censure against the public servant who is believed guilty of violation of law or dereliction of duty. Certainly, the three government organizations mentioned above play a vital role individually in the auditing and deliberation system of government annual financial statements.
Using the political system theory issued by David Easton, this study established the framework of auditing and deliberation system of government annual financial statements to observe the interaction of subsystem, including National Audit Office, Legislative Yuan, and the Control Yuan. Then, the thesis analyzed the environmental factors affecting the system, and thereby examined the conversions, outputs and feedbacks responded back from the system. Finally, the study raised several suggestions to integrate “the system”: First, improving the system of supervision on government annual financial statements executed by the Legislative Yuan. Second, the link between deliberation on budget and annual financial statements should be legalized. Third, enhancing the independence of audit agencies to meet the international standards comprehensively and completely. Fourth, helping the media understand the audit activities and results to arouse the attention of legislature. Fifth, audit agencies should promote transparency to make more information available and understandable to the public. Sixth, reviewing the existence of the power for certificating annual financial statements.
Subjects
government financial statements
accountability
National Audit Office
Legislative Yuan
Control Yuan
audit report
political system
Type
thesis
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