Accountability of Public Finances

In case of financial statement, fraud or any the crime involving financial statements in the government organizations then the PAC is expected to carry out an investigation and table its report to the Parliament on debate and provide recommendations for the government (Kang et al. 2008). Members of the committee are expected to obtain information or evidence from public officers and even managers of the public organizations. They are expected to examine the Director of Audits report concerning any organization. The president, however, is not a member of the committee, and the committee is independent of any control by the executive.
In China the process of reporting involves preparation of the audit report, then preparation of the tax reconciliation report and finally preparation of foreign exchange reconciliation for foreign companies operating in China. There is also profit Repatriation of the financial statements depending on tax clearance completion. The financial reporting process in China is coded as it was borrowed heavily from Germany. Previously, most of the companies were owned by the government, but after the 80’s they reduced though the government still has some control over their reporting. The source of capital is debt thus the reporting is inclined towards the requirements of their equity providers that is the government and banks. The management is responsible for the financial statements of an entity in China be it government’ public or private organization. Accountability of the financial statements is at the hands of the Chief Financial Officers and the top management who acts as the agents of the owners. It is expected that all financial reports must be audited before getting published so as to show a true and fair view of the financial position of the firm. The must comply with the reporting standards issued by Hong Kong Institute of Certified Public Accountants (Shah