The Independence of the Chinese Auditor-General: A critical comparison with Australia

Ian MacLean, Monir Mir, Hai Fan

    Research output: A Conference proceeding or a Chapter in BookConference contribution

    Abstract

    Independence is generally accepted as fundamental and essential to every audit. This study explores the independence of the Chinese Auditor-general through comparison with the independence status of the Australian Auditor-general. Using the independence quantification framework proposed by Coghill (2004) and the independence criteria proposed by International Organisation of Supreme Audit Institutions (INTOSAI), the study finds that the Chinese auditor-general and the Chinese National Audit Office are not independent. However, many public sector audit mechanisms and processes in China are consistent with Australian (and Western) mechanisms and processes. In addition, it also has been observed that Chinese public sector audits are strongly outcome-oriented. The public sector audit system that has developed in China emphasises outcome rather than independence.

    Many studies have investigated audit independence issues in the private sector. However studies on audit independence in public sector in developing countries remained under-researched. This study partly fills this research gap by investigating public sector audit independence in China and therefore, contributing to the audit-independence-related literature in the context of developing countries. So far, few studies have investigated the status of public sector audit independence in the context of a unitary national government. This study fills in this research gap.
    Original languageEnglish
    Title of host publicationProceedings of the 5th Global Business and Social Science Research Conference
    EditorsNuah Jahan
    Place of PublicationMelbourne
    PublisherWorld Business Institute Australia
    Pages1-54
    Number of pages54
    Volume5
    ISBN (Print)9781922069061
    Publication statusPublished - 2012
    Event5th Global Business and Social Science Research Conference - Beijing, Beijing, China
    Duration: 25 Jun 201226 Jun 2012

    Conference

    Conference5th Global Business and Social Science Research Conference
    CountryChina
    CityBeijing
    Period25/06/1226/06/12

    Fingerprint

    Audit
    Auditors
    Public sector
    China
    Developing countries
    Quantification
    Private sector
    International organizations
    Government

    Cite this

    MacLean, I., Mir, M., & Fan, H. (2012). The Independence of the Chinese Auditor-General: A critical comparison with Australia. In N. Jahan (Ed.), Proceedings of the 5th Global Business and Social Science Research Conference (Vol. 5, pp. 1-54). Melbourne: World Business Institute Australia.
    MacLean, Ian ; Mir, Monir ; Fan, Hai. / The Independence of the Chinese Auditor-General: A critical comparison with Australia. Proceedings of the 5th Global Business and Social Science Research Conference. editor / Nuah Jahan. Vol. 5 Melbourne : World Business Institute Australia, 2012. pp. 1-54
    @inproceedings{8f498db3e9df40fe8a5873f3a3109f45,
    title = "The Independence of the Chinese Auditor-General: A critical comparison with Australia",
    abstract = "Independence is generally accepted as fundamental and essential to every audit. This study explores the independence of the Chinese Auditor-general through comparison with the independence status of the Australian Auditor-general. Using the independence quantification framework proposed by Coghill (2004) and the independence criteria proposed by International Organisation of Supreme Audit Institutions (INTOSAI), the study finds that the Chinese auditor-general and the Chinese National Audit Office are not independent. However, many public sector audit mechanisms and processes in China are consistent with Australian (and Western) mechanisms and processes. In addition, it also has been observed that Chinese public sector audits are strongly outcome-oriented. The public sector audit system that has developed in China emphasises outcome rather than independence.Many studies have investigated audit independence issues in the private sector. However studies on audit independence in public sector in developing countries remained under-researched. This study partly fills this research gap by investigating public sector audit independence in China and therefore, contributing to the audit-independence-related literature in the context of developing countries. So far, few studies have investigated the status of public sector audit independence in the context of a unitary national government. This study fills in this research gap.",
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    MacLean, I, Mir, M & Fan, H 2012, The Independence of the Chinese Auditor-General: A critical comparison with Australia. in N Jahan (ed.), Proceedings of the 5th Global Business and Social Science Research Conference. vol. 5, World Business Institute Australia, Melbourne, pp. 1-54, 5th Global Business and Social Science Research Conference, Beijing, China, 25/06/12.

    The Independence of the Chinese Auditor-General: A critical comparison with Australia. / MacLean, Ian; Mir, Monir; Fan, Hai.

    Proceedings of the 5th Global Business and Social Science Research Conference. ed. / Nuah Jahan. Vol. 5 Melbourne : World Business Institute Australia, 2012. p. 1-54.

    Research output: A Conference proceeding or a Chapter in BookConference contribution

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    N2 - Independence is generally accepted as fundamental and essential to every audit. This study explores the independence of the Chinese Auditor-general through comparison with the independence status of the Australian Auditor-general. Using the independence quantification framework proposed by Coghill (2004) and the independence criteria proposed by International Organisation of Supreme Audit Institutions (INTOSAI), the study finds that the Chinese auditor-general and the Chinese National Audit Office are not independent. However, many public sector audit mechanisms and processes in China are consistent with Australian (and Western) mechanisms and processes. In addition, it also has been observed that Chinese public sector audits are strongly outcome-oriented. The public sector audit system that has developed in China emphasises outcome rather than independence.Many studies have investigated audit independence issues in the private sector. However studies on audit independence in public sector in developing countries remained under-researched. This study partly fills this research gap by investigating public sector audit independence in China and therefore, contributing to the audit-independence-related literature in the context of developing countries. So far, few studies have investigated the status of public sector audit independence in the context of a unitary national government. This study fills in this research gap.

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    MacLean I, Mir M, Fan H. The Independence of the Chinese Auditor-General: A critical comparison with Australia. In Jahan N, editor, Proceedings of the 5th Global Business and Social Science Research Conference. Vol. 5. Melbourne: World Business Institute Australia. 2012. p. 1-54