Audit Independence and Objectivity: Evidence from the Chinese National Audit Office

Abstract

Independence and objectivity are essential credibility elements for the audit reports. A lack of literature on the independence of the Chinese National Audit Office (CNAO) prompted this paper to fill the void. Based on the audit reports submitted to the Chinese Congress, the CNAO has exhibited its rigorousness in the audit approaches, and its independence and objectivity. Despite the varying length of the reports, these reports comply with the auditing standards on audit reports stipulated by the CNAO. The findings benefit both the government and private audits, within and outside China. Future research could include longitudinal studies on the reports, and the economic and financial implications of these reports to the Congress and auditees. Cross border comparisons, in particular among the emerging economies, will add benefits to the policy makers and audit profession.

Keywords: auditing guidelines, Chinese National Audit Office, independence and objectivity

JEL Classification: M41