China’s Audit Law: Audit Authority and Audit Jurisdiction
The National Audit Office is the highest audit authority in the PRC, and it is also a department directly under the State Council. Under the leadership of Premier the State Council, the National Audit Office is in charge of national audit work, and is responsible for and reporting on its work to the State Council. Local audit authorities at all levels shall implement a dual leadership system. Under the leadership of the chief executive at the same level and the audit authority at the next higher level, they shall be responsible for the audit work within their respective administrative jurisdictions, and shall be responsible and report on their work to the people's governments at the same levels and the audit authorities at the next higher levels, and their audit work shall be directed chiefly by the audit authorities at the next higher levels.
(1) Local audit authorities at all levels are responsible for auditing the following in accordance with the law: the status of the budget execution and other budgetary revenues and expenditures of the government at the same level; the execution of budget and final accounts and the management and application of extra-budgetary funds of the budgets of various authorities (including directly affiliated entities) of the governments at the same level and lower levels; the assets, liabilities, profits and losses of national institutions and entities and dominant financial institutions; the assets, liabilities, profits and losses of State-owned enterprises and enterprises controlled or dominated by State-owned capital; the budget execution and final accounts of construction projects with or dominated by government investment; the financial revenues and expenditures of social security funds, public donation funds, and other relevant funds and capitals managed by government authorities and other entities as entrusted by the government; the financial revenues and expenditures of donations or loans from international organizations or foreign governments; and accountability audit of the principals of government authorities and other entities subject to supervisory audit by audit authorities during their term of office.
(2) The National Audit Office shall exercise supervisory audit of the execution of the budget of the Central Government and other budgetary revenues and expenditures, and submit audit reports to the Premier the State Council. Local audit authorities at all levels shall exercise supervisory audit of the execution of the budget of the governments at the same levels and other budgetary revenues and expenditures, and submit audit results reports to the people's governments at the same levels and the audit authorities at the next higher levels.
(3) Audit authorities at all levels, as entrusted by the governments at the same levels, shall submit audit reports on budget execution and other budgetary revenues and expenditures of the governments at the same levels to the Standing Committee of the People's Congresses at the same levels on an annual basis.
(4) Audit authorities at all levels shall have the power to perform investigatory audit of specific matters related to the State's fiscal revenue and expenditure, and submit audit reports to the people's governments at the same levels and the audit authorities at the next higher levels.
(5) Audit authorities at all levels shall guide and supervise the internal audit work and verify the relevant audit reports issued by social audit institutions.
In the course of performing their duties, audit authorities and their personnel have the right to request submission of information, perform investigations and obtain evidence, take administrative coercive measures, request assistance, refer cases, impose penalties, circulate public notices, and publish audit results.
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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