This paper also provides some far-reaching implications for China’s government auditing practices and corruption
control initiatives. Our research indicates that rectification after an audit is even more important than
the fraud detection process itself. Whereas the discovery of irregularities without subsequent disposals cannot
make government auditing a powerful accountability regime, rectification that includes “asking for responsibility”
is effective in reducing corruption. Therefore, leading government officials, audit institutions and other
professional supervisory agencies should place greater emphasis on the rectification process after audits. They
should ensure not only that all lawful sanctions and penalties imposed by government auditors are exercised
thoroughly, but also that institutional problems found in auditing are solved in a timely manner. It is only by
correcting misbehavior found in government auditing and punishing all of the responsible departments and
individuals for their wrongdoing, that government transparency can be achieved and the chronic corruption
problem can be genuinely relieved.