The Role of Budget Execution Auditing, Existing Challenges in Budget Execution, and Proposed Solutions

DOI: https://doi.org/10.62517/jiem.202503402

Author(s)

Lijiao Cui, Tantan Huang, Shaochun Ma*

Affiliation(s)

Department of Finance, Hanshan Normal University, Chaozhou, Guangdong, China *Corresponding Author

Abstract

This paper analyzes the role of budget execution auditing in the budget execution process, identifies issues encountered during execution, and seeks measures to address these issues. It proposes specific measures for the issues that arise in the course of budget execution. The research indicates that the slow progress of budget execution can be attributed to two main factors: internal and external factors. Internal factors include: Unrealistic budget preparation that sets overly ambitious goals, making it challenging to achieve objectives during actual execution; Lack of clarity in accountability, where executors are either unaware of or unable to accurately interpret budgetary requirements; Inefficient information sharing between departments hampers timely feedback and adjustments; Uneven resource allocation, where insufficient resources for critical tasks adversely affect progress. External factors encompass: The influence of the budget preparation cycle; Changes in the market environment; Unexpected circumstances, among others. The study concludes that it is essential to analyze the reasons for the sluggishness in budget execution, which includes examining whether the budget preparation is scientifically sound, whether monitoring mechanisms are in place, whether resource allocation is appropriate, whether inter-departmental communication is smooth, and whether the incentive mechanisms are robust. By analyzing these issues, more targeted corrective measures can be formulated.

Keywords

Budget Execution; Budget Execution Auditing; Role; Issues; Measures

References

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