Implementing Regulations of the Audit Law of the People's Republic of China (Revised in 2010)
Implementing Regulations of the Audit Law of the People's Republic of China (Revised in 2010)
Implementing Regulations of the Audit Law of the People's Republic of China (Revised in 2010)
Order of the State Council No. 571
February 11, 2010
The Implementing Regulations of the Audit Law of the People's Republic of China (Revised in 2010), which were revised and adopted at the 100th executive meeting of the State Council on February 2, 2010, are hereby promulgated and shall come into effect as of May 1, 2010.
Premier: Wen Jiabao
Implementing Regulations of the Audit Law of the People's Republic of China (Revised in 2010)
(Promulgated by Order of the State Council No. 231 on October 21, 1997, revised and adopted at the 100th executive meeting of the State Council on February 2, 2010)
Chapter I General Provisions
Article 1 These Regulations are hereby formulated in accordance with the provisions of the Audit Law of the People's Republic of China (hereinafter referred to as the Audit Law).
Article 2 For the purpose of the Audit Law, the term "audit" shall refer to the acts of legal and independent inspection by an audit institution of an auditee's accounting vouchers, account books, accounting statements and other information and assets related to fiscal revenues and expenditures and financial revenues and expenditures, as well as supervision over the truthfulness, legitimacy and benefits of fiscal revenues and expenditures as well as financial revenues and expenditures.
Article 3 For the purpose of the Audit Law, the term "fiscal revenues and expenditures" shall refer to the revenues and expenditures incorporated in budget management as well as the following revenues and expenditures which are not incorporated in budget management in accordance with the provisions of the Budget Law of the People's Republic of China and other relevant provisions of the state:
1. Administrative charges;
2. Revenues of state-owned resources and assets;
3. State-owned capital operation incomes that should be turned over;
4. The funds raised by government borrowings and debts; and
5. Other financial funds not incorporated in budget management.
Article 4 For the purpose of the Audit Law, the term "financial revenues and expenditures" shall refer to various revenues and expenditures of state-owned financial institutions, enterprises and institutions as well as other entities that are subject to audit supervision by the audit institutions, which shall be subject to accounting and auditing in accordance with the state provisions on financial and accounting.
Article 5 Audit institutions shall carry out auditing supervision pursuant to the functions and responsibilities, limits of authority and procedures prescribed by the Audit Law and these Regulations as well as other relevant laws and regulations.
Audit institutions shall base their audit assessment on laws, regulations on fiscal revenues and expenditures and financial revenues and expenditures as well as the provisions of relevant state policies, standards, project objectives. Where the auditees violate the state laws, regulations on fiscal revenues and expenditures and financial revenues and expenditures, audit institutions shall make decisions to deal with and punish them within the scope of their statutory functions and powers.
Article 6 All entities and individuals shall have the right to report to the audit institutions in respect of the acts against the state laws, regulations on fiscal revenues and expenditures and financial revenues and expenditures of the entities subject to audit supervision of the audit institutions, which shall, upon receipt of the report, handle the matter in a timely manner.
Chapter II Audit Institutions and Auditors
Article 7 The National Audit Office shall, under the leadership of the Premier of the State Council, take charge of the audit work throughout the country and perform the functions and responsibilities prescribed by the Audit Law and the State Council.
Local audit institutions at all levels shall, under the leadership of the administrative leader of the people's governments at the corresponding level and the audit institution at a superior level, be responsible for the audit work within their respective administrative areas and perform the functions and responsibilities prescribed by laws, regulations and the people's government at the corresponding level.
Article 8 As for the people's governments of provinces and autonomous regions which have set up dispatched offices, the audit institutions of the dispatched offices shall be responsible and report on their work to the dispatched offices and audit institutions of people's governments of provinces and autonomous regions, and their audit work shall be directed chiefly by the audit institutions of people's governments of provinces and autonomous regions.
Article 9 The dispatched offices of audit institutions shall, in accordance with laws, regulations and rules of the audit institutions, carry out audit work within the scope authorized by the audit institutions and be free from any interference by any administrative organ, public organization or individual.
Article 10 Bases for the compilation of draft budgets for annual expenses by audit institutions mainly include:
1. Laws and regulations;
2. Decision and requirements of the people's government at the corresponding level;
3. Annual audit work plan of the audit institution;
4. Standards for staffing quota; and
5. Implementation of the budget of the previous year and factors for the variation thereof in the current year.
Article 11 The system of technical qualifications of the auditing specialty for auditors shall be practiced. Specific measures shall be determined in accordance with the relevant state provisions.
Audit institutions may, as required by work, retain persons with related professional knowledge with respect to audit matters to participate in audit work.
Article 12 In handling audit matters, when auditors encounter any of the following circumstances, they shall apply for withdrawal; the auditees also have the right to apply for the withdrawal of the auditors:
1. Having husband-and-wife relationship, direct blood relationship, collateral relationship by blood in three generations as well as close relationship by marriage with the responsible person and other person in charge concerned of the auditee;
2. Having economic interests with the auditee or the audit matters; and
3. Having other relations of interest with the auditee, the audit matters, and the principal or relevant in-charge persons of the auditee which may adversely affect fair performance of official duties.
Withdrawal of auditors shall be decided by the responsible person of an audit institution; withdrawal of the responsible person of an audit institution shall be decided by the people's government at the corresponding level or the responsible person of the audit institution at a superior level.
Article 13 In the appointment and removal of person in charge and their deputies of local audit institutions at all levels, views of the audit institution at a superior level shall be sought in advance.
Article 14 Persons in charge of audit institutions not having any of the following circumstances during the tenure of office shall not be removed or replaced arbitrarily:
1. Being investigated of criminal responsibility for crime;
2. Having been given administrative sanctions for serious violation of law and negligence of duty and no longer suitable for the position of the person-in-charge of an audit institution;
3.
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