Audit Law of the People's Republic of China
Audit Law of the People's Republic of China
Audit Law of the People's Republic of China
Order of the President [1994] No. 32
Adopted at the Ninth Session of the Eighth Standing Committee of the National People's Congress held on August 31, 1994 and promulgated according to the [1994] No. 32 Order of the President of the People's Republic of China
Contents
Chapter I General Provisions
Chapter II Audit Institutions and Auditors
Chapter III Functions and Responsibilities of Audit Institutions
Chapter IV Power of Audit Institutions
Chapter V Audit Procedures
Chapter VI Legal Liabilities
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is formulated in accordance with the Constitution, with a view to strengthening the State supervision through auditing, maintaining the financial and economic order of the country, promoting the building of a clean government and ensuring the sound development of the national economy.
Article 2 The State shall practice a system of supervision through auditing. The State Council and the local people's governments at or above the county level shall establish audit institutions.
Budgetary revenues and expenditures of various departments under the State Council, of the local people's governments at various levels and of their departments, financial revenues and expenditures of state-owned monetary organizations, enterprises and institutions, as well as other budgetary revenues and expenditures and financial revenues and expenditures subject to auditing according to this Law, shall be supervised through auditing in accordance with the provisions of this Law.
Audit institutions shall, according to law, supervise through auditing the authenticity, legality and beneficial results of the budgetary revenues and expenditures or financial revenues and expenditures specified in the preceding paragraph.
Article 3 Audit institutions shall conduct supervision through auditing within their respective scope of power and in procedures prescribed by law.
Article 4 The State Council and the local people's governments at or above the county level shall annually present to the standing committees of the people's congresses at the same level the audit reports prepared by audit institutions concerning implementation of the budget as well as incurrence of other budgetary revenues and expenditures.
Article 5 Audit institutions shall independently exercise their power of supervision through auditing in accordance with law, and be free from interference by any administrative organ, public organization or individual.
Article 6 Audit institutions and auditors shall, in handling audit matters, be objective and fair, practical and realistic, clean and honest, and keep secrets.
Chapter II Audit Institutions and Auditors
Article 7 The State Council shall establish the National Audit Administration to take charge of the audit work throughout the country under the leadership of the Premier of the State Council. The Auditor-General shall be the administrative leader of the National Audit Administration.
Article 8 Audit institutions under the people's governments of provinces, autonomous regions, municipalities directly under the Central Government, cities divided into districts, autonomous prefectures, counties, autonomous counties, cities not divided into districts and municipal districts shall be in charge of the audit work within their respective administrative areas under the respective leadership of governors of provinces, chairmen of autonomous regions, mayors, prefectural heads, or heads of counties and districts as well as the leadership of audit institutions at the next higher level.
Article 9 Local audit institutions at various levels shall be responsible for and report on their work to the people's governments at the same level and the audit institutions at the next higher level. Their audit work shall be directed chiefly by the audit institutions at the next higher level.
Article 10 Audit institutions may, as required by work, appoint resident audit officers within areas under their jurisdiction.
Resident audit officers shall, according to the authorization of audit institutions, conduct audit work in accordance with law.
Article 11 Funds needed audit institutions to perform their functions shall be included in the budgets of the government and be guaranteed by the people's government at the corresponding level.
Article 12 Auditors shall possess the professional knowledge and ability required by the audit work they engage in.
Article 13 In handling audit matters, if auditors have an interest in the auditees or the audit items, they shall withdraw.
Article 14 Auditors shall have the obligation to guard State secrets and the auditees' business secrets they have come to know in performing their functions.
Article 15 Auditors shall be protected by law in performing their functions in accordance with law.
No organization or individual may refuse or obstruct auditors' performance of their functions in accordance with law, or retaliate against auditors.
Persons in charge of audit institutions shall be appointed or removed in accordance with legal procedures.
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