The Analysis of Necessity to Bring in the Audit System in Non-profit Private Schools of Higher Education

Abstract

After the publishing of the “Chinese private schools promotion law”, the private schools of higher education have to make a choice of whether to transfer to a non-profit private school to avoid the tax, however, the non-profit private school requires the investors to abandon all the profits on the school. To transfer the income, investors may consider the unfair related transaction. For the purpose of avoiding and recognizing the unfair related transaction, it is necessary to bring in the audit system, which includes the government audit, external audit, and the internal audit.