Abstract: As a formal institutional arrangement, the audit system has such problems as path reliance and higher reform cost in the course of reform and reconstruction. Compared with the audit system, the audit method as the informal institutional arrangement is easier to change, and it can play a more active role in the improvement of government audit independence and government audit quality. The empirical research results of this paper indicate that the audit quality of cross-audit method is higher than that of non-cross-audit method; under the present audit system, the audit quality of resident offices is higher than that of local auditing offices, i.e. the audit quality of the resident offices under the vertical leadership of the National Audit Office is higher than that of the local audit offices which are under the dual leadership. Therefore, under the present conditions that the audit system is difficult to reconstruct within a short period of time, more flexible and feasible audit methods can be adopted to compensate for the deficiency of government audit independence under the current audit system, so as to improve the government audit quality. In the long run, to reform the government audit system is the fundamental way to improve government audit quality. However, whether for audit system reform or for audit method innovation, the substantial independence of government audit must be improved.

Key words: government audit; audit system; audit method; audit quality