China’s Audit Law: Meaning of audit
The original meaning of audit is to review accounting accounts. In its legal sense, audit refers to the supervisory activities of reviewing and evaluating the accounting information of specified entities and the financial revenues, expenditures, and other economic activities reflected therein conducted by independent specialized agencies and personnel in accordance with the law. Audit has become an important means for countries to administer and supervise their national economic activities.
(1) The basic purpose of audit is to supervise the authenticity and legality of the finance and accounting of an entity through auditing.
(2) Auditors: specialized agencies and personnel, which refer to statutory audit authorities, internal audit departments, independent audit institutions, and their audit professionals, such as the National Audit Office and its audit authorities at all levels.
(3) Auditees: the accounting information and fiscal and financial revenues and expenditures of state organs government authorities (the State Council, local people's governments and authorities at all levels), State-owned financial institutions, enterprises, public institutions, and other economic organizations.
(4) The fundamental feature of independence: The audit system in the PRC is managed vertically, independent of local governments and authorities at all levels.
Practising lawyers
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Robert Zhang
An international lawyer registered in Shanghai, China. Master's degreePublish…
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Steve Li
An international lawyer registered in Shanghai, China. Master's degreePublish…
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