China’s Audit Law: Legal Liabilities
(1) If an audited entity refuses or delays provision of information relating to audit matters, provides untrue or incomplete information, or refuses or hinders the inspection, in violation of the Audit Law, the audit authority shall order it to make corrections, and may issue a public notice of criticism and warning, and criminal liability shall be incurred in accordance with the law if the violation constitutes a crime.
(2) If an audited entity transfers, conceals, tampers with, or destroys accounting vouchers, accounting books, financial reports, or other information relating to their budgetary or financial revenues and expenditures in violation of the Audit Law, or transfers or conceals assets obtained in violation of national regulations, and the audit authority believes that the directly responsible chief and other persons directly responsible should be punished in accordance with the law, a proposal for disciplinary action shall be made, the audited entity or its superior or supervisory authorities shall make timely decisions in accordance with the law, and the audit authority shall be informed of such decisions in writing, and criminal liability shall be incurred in accordance with the law if the violation constitutes a crime.
(3) For violations in respect of budget or other fiscal revenues and expenditures by the authorities at the same level (including directly affiliated entities) and governments at lower levels, the audit authority, people's government, or other competent authorities may, within the scope of their statutory powers and in accordance with the provisions of laws and administrative regulations, depending on the severity of the violations, make an order for payment of the taxes outstanding within a specified period of time, return of the encroached State-owned assets within a specified period of time, return of illegal gains within a specified period of time; or take measures in accordance with the applicable provisions of the national unified accounting system, or take other punishment measures.
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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