According to the “Waste Disposal Act”, enterprises responsible for recycling, clearance and disposal officially announced (herein referred to as the responsible enterprises) shall register with the competent authority, and pay recycling, clearance and disposal fees. And the central competent authority in consultation with the central industry competent authority shall determine management regulations for the registration, reporting, fee payment methods, procedures, deadlines, deductions, refunds and other binding matters for the responsible enterprises. Effective audit policy to enforce the act could ensure the operation of the “Resource Recycling Management Fund”, and make sure the fairness of the recycling, clearance and disposal activities. This study integrates both academic and field experience to construct the sampling methods on both non-registered and registered responsible enterprises, expecting to help the auditor recognized the firms which tending to evade the fees. The empirical results show that for non-registered responsible enterprises, evasions are positively related to dollar sales and samples from customs, and negatively related to firm history and capital. Some districts and certain articles and the packaging and containers are also positively related to fee evasion. For registered responsible enterprises, this study finds that firms with fines related to environment pollution are more tended to evade. Contrasting to the electric industry, food and biological medicinal chemicals industries have more evasions in dollar amount. For the policy of audit all the responsible enterprises for which manufactured or imported articles and the packaging and containers within 4 years, the popular circumstances that continuous audit if companies being found underreport their fee, the audit policy that inform the audited enterprises in advance, and the mechanisms of subsidy and punishment for evasion companies, we provide some opinions and propose some suggestions. Also, the analysis of firm characteristics related to the evasion of recycling, clearance and disposal fees are expected to help the auditors manage their audit policy more efficient and effective in the future.

Sampling method;Audit policy;Mechanism design