Summary
On May 12, 2008, an earthquake with a magnitude of 8.0
hit the Sichuan, Gansu and Shaanxi provinces. The National Audit Office (NAO) says that over 4,500 auditors have been tracking the 76 projects distributed across the 28 counties of the three provinces since January. Projects include the reconstruction of rural houses, schools, transportation, and telecommunication projects. Although no major legal breaches were found in the use of reconstruction funds, the NAO did find some problems. The Anxian county lied by inflating its losses from the quake, so they would receive more fundings than they require. As a result, central finance gave out an extra 15.5 million yuan to the project. But in the end, after auditing, the extra money was refunded.
hit the Sichuan, Gansu and Shaanxi provinces. The National Audit Office (NAO) says that over 4,500 auditors have been tracking the 76 projects distributed across the 28 counties of the three provinces since January. Projects include the reconstruction of rural houses, schools, transportation, and telecommunication projects. Although no major legal breaches were found in the use of reconstruction funds, the NAO did find some problems. The Anxian county lied by inflating its losses from the quake, so they would receive more fundings than they require. As a result, central finance gave out an extra 15.5 million yuan to the project. But in the end, after auditing, the extra money was refunded.
Connection
This article relates to chapter 1 of the textbook, Financial Accounting - a use perspective, because it mentions about auditors and their job. The textbook defines an auditor as someone who is a "professionally trained accountant who add credibility to the financial statements by expressing their professional opinions as to whether the financial statements fairly present the company's results." In other words, an auditor is a professional accountant who "checks over a company's 'books' and their job is to correct the mistakes found." The thousands of auditors are important in this article because they have helped the many people in need by refunding "stolen" money, so it can be used for people that actually need it.
Reflection
In my opinion, auditors are important to everyone; for if there were no auditors, the money would've been "stolen" by these greedy people, and the people starving or homeless may not get help because of their greediness. I believe that many people in the world are lying in order to collect more money, and auditors are helping by stopping them from "stealing" money. Also, I think that auditors should check companies more often, maybe every six months, instead of every year; this will lower the chances of any major violations or legal breaches.
