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The Restoring Act of Fiscal Health and the Expansion of Audit Areas

Tatsumine Ito
Professor of Auditing, Department of Commerce, Seinan Gakuin University.


The restoring act of fiscal health is designed to encourage local governments to manage fiscal administrations soundly. Specifically, this act provides a rough index of fiscal soundness to local authorities. Auditing is expected to play an important role in archiving the designated goal of this restoring act. The implication of this paper is for the current audit system for local governments: the restoring act of fiscal health, arguably, points out that the framework of current audit system does poorly work for that designated goal.