Regulations for Implementation of the Audit Law of the People's Republic of China-1997
Regulations for Implementation of the Audit Law of the People's Republic of China-1997
Regulations for Implementation of the Audit Law of the People's Republic of China-1997
Order of the State Council [1997] No.231
October 21, 1997
Chapter I General Provisions
Article 1 In accordance with the provisions of the Audit Law of the People's Republic of China (hereinafter called the "Audit Law"), this Regulation is formulated.
Article 2 Audit means an act which, in accordance with the law, the audit office shall independently examine accounting documents, books and statements as well as other materials and assets in connection with fiscal and financial revenues and expenditures of the unit to be audited, and supervise their truthfulness, lawfulness and beneficial results.
Article 3 Fiscal revenues and expenditures under audit supervision mean those which, in accordance with the provisions of the Budget Law of the People's Republic of China and other relevant regulations of the State, shall be included in the budget management, and those in connection with extra-budgetary funds.
Financial revenues and expenditures under audit supervision mean those in connection with various funds for accounting affairs, activities and control in accordance with the State's regulations on the financial and accounting system of State-owned financial institutions, enterprises, institutions and other units which, as required by the State, shall be subject to audit supervision.
Article 4 Audit offices render audit supervision in accordance with the duties, powers and procedures laid down by the Audit Law, this Regulation and other relevant laws and regulations.
Audit offices make audit judgment, treatment and punishment in accordance with laws, regulations and other relevant provisions of the State on fiscal and financial revenues and expenditures.
Article 5 The audit office shall render audit supervision on the following main items in budget performance:
1. budget replies to all corresponding departments by the finance department of the corresponding people's government in accordance with the corresponding budget approved by the corresponding people's congress, adjustments and changes in budget revenues and expenditures in the corresponding budget performance;
2. collection of budget revenues by budget revenue collection departments in accordance with laws, administrative regulations and other relevant provisions of the State;
3. allocation of funds for corresponding budget expenditures by the finance department of the corresponding people's government in accordance with the approved annual budget and funds application programme, budget grade and procedures;
4. allocation of funds for budget expenditures as subsidy to people's governments at the lower level and final settlement by the finance department of the State Council or of the local people's government at or above the county level in accordance with the provisions of laws and administrative regulations and the budget management system;
5. performance of all departments at the corresponding level of annual budget expenditures and fiscal and financial systems as well as the related economic construction and industry development, and the turnover of budget revenues by the relevant departments and units;
6. budget revenues collection and budget expenditures allocation by the corresponding State Treasury in accordance with the relevant regulations of the State;
7. receipts and payment of budget funds under special management in accordance with the relevant regulations of the State; and
8. other items in budget performance as prescribed by laws and regulations.
Article 6 The audit office shall render audit supervision on the following main items in other fiscal revenues and expenditures:
1. management and utilization of extra-budgetary funds and reimbursable budgetary funds by the finance department of the corresponding people's government in accordance with the provisions of laws, administrative regulations and other relevant provisions of the State;
2. management and utilization of extra-budgetary funds by all corresponding departments in accordance with the provisions of laws, administrative regulations and other relevant provisions of the State; and
3. the final settlement of all corresponding departments and the governments at the lower level.
Chapter II Audit Offices and Auditors
Article 7 Under the leadership of the Premier of the State Council, the National Audit Office takes charge of the audit work throughout the country and perform the duties prescribed by the Audit Law and the State Council.
Under the leadership of the administrative leader of the corresponding people's government and the audit office at the next higher level, the local audit office are responsible for the audit work within its jurisdiction and perform the duties prescribed by laws, regulations and the corresponding people's government.
Article 8 The audit office of a prefectural administration set up by the people's government of a province or autonomous region is responsible for and reports its work to the prefectural administration and the audit office of the people's government of the province or autonomous region, and its audit business shall be directed chiefly by the audit office of the people's government of the province or autonomous region.
Article 9 The audit office shall formulate the draft budget of annual expenses for performance of its duties in accordance with --
1. laws and regulations;
2. the decision and requirements of the corresponding people's government;
3. its duties, targets and plan;
4. the standards for staffing quota; and
5. budget execution of the preceding year and variable factors in the current year.
Expenses budget required by the audit office for performance of its duties shall be listed separately in the corresponding budget and guaranteed by the corresponding people's government.
Article 10 In respect to the auditors, it shall have the audit professional qualifications system. Specific and concrete measures shall be governed by the relevant regulations of the State.
According to the needs of its work, the audit office may appoint persons having professional knowledge related to the audit items to participate in the audit work.
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