China’s Accounting Law: External accounting supervision
China’s Accounting Law: External accounting supervision
(I) State supervision
2. Audit supervision
According to the applicable provisions of the Audit Law, audit authorities shall perform the following duties: ① Audit authorities shall exercise supervisory audit of the execution of budget, final accounts, and the management and application of extra-budgetary funds of the various authorities (including directly affiliated entities) at the same level and lower level governments; ② The National Audit Office shall exercise supervisory audit of the financial revenue and expenditure of the Central Bank. Audit authorities shall exercise supervisory audit of the assets, liabilities, and profits and losses of State-owned financial institutions and State-owned enterprises. ③ Audit authorities shall exercise supervisory audit of the financial revenues and expenditures of State institutions. ④ Audit authorities shall regularly audit the State-owned enterprises that are vital to the national economy and the people's livelihood, heavily depend upon government subsidies, or have experienced significant losses, and other State-owned enterprises designated by the State Council or the people's governments at the same levels in a planned manner. ⑤ The rules for the audit and supervision of enterprises with State-owned assets holding a controlling or dominant position shall be stipulated by the State Council. ⑥ Audit authorities shall exercise supervisory audit of the execution of the budgets and the final accounts of the national construction projects. ⑦ Audit authorities shall exercise supervisory audit of the financial revenues and expenditures of social security funds, funds from public donations, and other relevant funds and capitals managed by governmental departments or by public organizations as entrusted by governments. ⑧ Audit authorities shall exercise supervisory audit of the financial revenues and expenditures of donations or loans from international organizations or foreign governments. Other matters to be audited shall be subject to audit and supervision in accordance with the Audit Law and other applicable laws and administrative regulations.
Robert Zhang 
Steve Li 