Audit Regulations of the People's Republic of China
Audit Regulations of the People's Republic of China
Audit Regulations of the People's Republic of China
Order of State Council [1988] No.21
November 30, 1988
The Audit Regulations of the People's Republic of China have been adopted at the 22nd executive meeting of the State Council on October 21, 1988, and are hereby promulgated, and come into force on January 1, 1989.
Premier Li Peng
Audit Regulations of the People's Republic of China
CHAPTER I GENERAL PRINCIPLES
Article 1 These Regulations are formulated to improve the audit supervision of financial income and expenditure and related economic activities, to enforce financial and economic law and discipline, to increase economic performance, to strengthen overall control and administration and to ensure the smooth implementation of the socialist modernisation programme.
Article 2 The State shall establish audit offices to implement an audit supervisory system.
An audit office shall undertake audit supervision of the various people's government departments at an equivalent level to itself, lower level people's government authorities, State finance organs, State-owned enterprises and institutional units and other State-funded units to ascertain the authenticity, legality and performance of their financial income and expenditure.
Article 3 An audit office shall undertake audit supervision in accordance with the provisions of State laws, statutory regulations and policies.
An audit office shall exercise independent supervisory rights in accordance with the law and no other administrative organ, social group or individual shall be permitted to interfere.
The audit conclusions and decisions of an audit office must be implemented by the units under audit and the relevant personnel. If an audit conclusion or decision involves another related unit, this unit shall assist in the implementation process.
Article 4 An audit office shall operate under a dual leadership system. It shall be responsible to and shall submit work reports to its equivalent level people's government authority and superior level audit office. Priority shall be given to audit work assigned by the leaders of its superior level audit office.
Article 5 An area under State audit jurisdiction where an audit office has yet to establish an agency may, in accordance with requirements, establish an internal audit body or provide auditors to implement an internal audit system.
Article 6 Social audit organisations established in accordance with the law may accept commissions to develop account auditing and to provide consultancy services.
CHAPTER II AUDIT OFFICES AND AUDITORS
Article 7 The State Council shall establish an Audit Administration. The Audit Administration shall be the State's supreme audit office and, under the leadership of the Premier of the State Council, shall organise the leadership of the entire State's audit work and shall be responsible for audit mattes which come within its audit scope.
Article 8 The various levels of people's governments at county level and above shall establish audit offices. Under the leadership of the provincial head, autonomous region chairman, mayor, prefecture head, county head or district head respectively, and its superior level audit office, a local audit office at any of the various levels shall organise the leadership of its own administrative district's audit work and shall be responsible for all audit matters which come within the audit scope of its own audit office level.
Article 9 An audit office may, in line with work requirements, establish an agency in a key district or department to undertake audit supervision.
Article 10 The leaders of audit offices at the various levels shall be appointed or dismissed in accordance with the provisions governing cadre administrative jurisdiction.
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