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Regulations for the Implementation of the Audit Law …Audit supervision by audit institutions over...
Transcript of Regulations for the Implementation of the Audit Law …Audit supervision by audit institutions over...
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Regulations for the Implementation of the Audit Law of the People’s Republic of
China
(Promulgated by Decree No. 231 of the State Council of the People’s Republic of
China on October 21, 1997, and revised and adopted at the 100th Executive Meeting of
the State Council on February 2, 2010)
Chapter I General Provisions
Article 1 These Regulations are formulated in accordance with the provisions of
the Audit Law of the People’s Republic of China (hereinafter referred to as the Audit
Law).
Article 2 The term “audit” in the Audit Law means the acts whereby audit
institutions, in accordance with law, independently inspect auditees’ accounting
documents, accounting books, financial and accounting reports as well as other
materials and assets related to government revenues and expenditures or financial
revenues and expenditures, and supervise the authenticity, lawfulness and efficiency of
such revenues and expenditures.
Article 3 The term “government revenues and expenditures” in the Audit Law
means the revenues and expenditures that are included in the budgetary control in
accordance with the Budget Law of the People’s Republic of China and other relevant
provisions of the State, as well as the revenues and expenditures in the following
government funds that are not included in the budgetary control:
(1) administrative charges;
(2) incomes from the use of State-owned resources and assets;
(3) proceeds from the operation of State-owned capital that shall be turned over to
higher authorities;
(4) funds raised by governments in the form of debts; and
(5) other government funds that are not included in the budgetary control.
Article 4 The term “financial revenues and expenditures” in the Audit Law
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means the various revenues and expenditures of State-owned financial institutions,
enterprises and institutions, as well as those of other units that shall be subject to audit
supervision by audit institutions in accordance with law, which shall go through
business accounting in accordance with the provisions of the State on financial and
accounting systems.
Article 5 Audit institutions shall conduct audit supervision in accordance with
their functions and duties, limits of power and procedures specified by the Audit Law,
these Regulations and other relevant laws and regulations.
Audit institutions shall conduct audit appraisals in accordance with laws and
regulations on government revenues and expenditures or financial revenues and
expenditures, as well as the provisions of the State on the relevant policies, standards
and project targets, and they shall, within their statutory functions and duties and limits
of power, make a decision to handle or punish the violations of the provisions of the
State on government revenues and expenditures or financial revenues and expenditures
committed by auditees.
Article 6 All units or individuals have the right to report to audit institutions the
violations of the provisions of the State on government revenues and expenditures or
financial revenues and expenditures committed by the units that are subject to audit
supervision by audit institutions in accordance with law. Upon receipt of such reports,
audit institutions shall, in a timely manner, deal with the cases in accordance with law.
Chapter II Audit Institutions and Auditors
Article 7 The National Audit Office shall, under the leadership of the Premier of
the State Council, take charge of the audit work throughout the country and perform its
functions and duties prescribed by the Audit Law and the State Council.
Local audit institutions at various levels shall, under the leadership of the
administrative chiefs of the people’s governments at the corresponding levels and the
leadership of audit institutions at the next higher levels, be responsible for the audit
work within their respective administrative areas, and perform their functions and
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duties prescribed by laws, regulations and the people’s governments at the
corresponding levels.
Article 8 Where the people’s government of a province or autonomous region
has set up a dispatched organ, the audit institution of the organ shall be responsible and
report its work to the organ and the audit institution of the people’s government of the
province or autonomous region, and its audit work shall be mainly subject to the
leadership of the audit institution of the people’s government of the province or
autonomous region.
Article 9 Offices dispatched by audit institutions shall, in accordance with laws,
regulations and the provisions of audit institutions, conduct their audit work as
authorized by audit institutions, and no other administrative organs, associations or
individuals may interfere in their work.
Article 10 Audit institutions shall draw up their annual draft expenditure
budgets mainly on the basis of:
(1) laws and regulations;
(2) decisions and requirements of the people’s governments at the corresponding
levels;
(3) their annual audit work plans;
(4) staffing quotas and expenditure criteria; and
(5) the implementation of expenditure budgets in the previous year and the
variables in the current year.
Article 11 A system of professional auditor qualifications shall be applied to
auditors and be concretely practised in accordance with the relevant provisions of the
State.
Audit institutions may, in light of the need of their work, engage persons with
professional knowledge relating to the audit matters in their audit work.
Article 12 Where an auditor is found in one of the following circumstances in
handling the audit matters, the auditor shall apply for recusal and the auditee also has
the right to apply for the auditor’s recusal:
(1) being related to the responsible person or the relevant persons in charge of the
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auditee by marriage, lineal blood relationship, collateral blood relationship within three
generations, or near affinity;
(2) having economic interests with the auditee or the audit matters; or
(3) having other interests with the auditee, audit matters, or the responsible person
or the relevant persons in charge of the auditee, which may affect the fair performance
of his official duties.
An auditor’s recusal shall be decided on by the responsible person of the audit
institution; the recusal of the responsible person of an audit institution from handling
the audit matters shall be decided on by the responsible person of the people’s
government at the corresponding level or by the responsible person of the audit
institution at the next higher level.
Article 13 For appointment and removal of the heads and the deputy heads of
local audit institutions at various levels, opinions of audit institutions at the next higher
levels shall be solicited in advance.
Article 14 The responsible person of an audit institution shall not be dismissed
or replaced at random except that he is found in one of the following circumstances
during his term of office:
(1) being investigated for criminal liability due to commitment of a crime;
(2) being no longer suitable to remain in office due to a sanction imposed on him
as a result of his gross violation of law or negligence of duty;
(3) failing to perform his duties for one year or more due to poor health; or
(4) failing to meet other eligibility conditions as prescribed by the State.
Chapter III Functions and Duties of Audit Institutions
Article 15 Audit institutions shall, in accordance with law, conduct audit
supervision over the budge implementation at the corresponding levels that are
concretely organized by finance departments of the people’s governments at the
corresponding levels, the collection of budgetary revenues by the departments in charge
of such collection at the corresponding levels, the budge implementation and the final
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accounts of the departments and units that directly turn over their budgetary revenues
to and receive budgetary appropriations from finance departments of the people’s
governments at the corresponding levels, the budget implementation and the final
accounts of the people’s governments at lower levels, and other government revenues
and expenditures. Audit institutions shall, upon approval of the people’s governments
at the corresponding levels and in accordance with law, conduct audit supervision over
the authenticity, lawfulness and efficiency of government funds accepted and used by
other units and projects.
Article 16 Audit institutions shall conduct audit supervision over the
implementation of budgetary revenues and expenditures at the corresponding levels in
the following aspects:
(1) the official replies given by finance departments regarding the budgets of the
departments at the corresponding levels (including the units directly subordinate to
them) in accordance with the budgets of the people’s governments as approved by the
people’s congresses at the corresponding levels, adjustments occurring in the course of
the implementation of the budgets at the corresponding levels, and changes in
budgetary revenues and expenditures;
(2) the collection of budgetary revenues by the departments in charge of such
collection in accordance with the provisions of laws and administrative regulations,
and other relevant provisions of the State;
(3) the appropriation of funds for budgetary expenditures at the corresponding
levels by finance departments in accordance with the approved annual budgets, plans
for using funds, and budgetary levels and procedures as prescribed;
(4) the appropriation and management of funds for transfer payment between
governments of different levels and the handling of their settlement and carry-over by
finance departments in accordance with the provisions of laws and administrative
regulations and fiscal management systems;
(5) the collection, allocation, retention and turnover of budgetary revenues and the
appropriation of budgetary expenditure funds by the treasuries in accordance with the
relevant provisions of the State;
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(6) the implementation of the annual budgets by the departments at the
corresponding levels (including the units directly subordinate to them);
(7) revenues and expenditures of budgetary funds under special control in
accordance with the relevant provisions of the State; and
(8) other matters involved in the budget implementation as prescribed by laws and
regulations.
Article 17 The term “reports on audit results” in Article 17 of the Audit Law
shall include the following:
(1) the basic situation of the budget implementation and other government
revenues and expenditures at the corresponding levels;
(2) audit appraisals by audit institutions on the budget implementation and other
government revenues and expenditures at the corresponding levels;
(3) problems existing in the budget implementation and other government
revenues and expenditures at the corresponding levels as well as measures adopted by
audit institutions in accordance with law;
(4) recommendations made by audit institutions on the improvement in the budget
implementation and the management of other government revenues and expenditures at
the corresponding levels; and
(5) other matters to be reported on as required by the people’s governments at the
corresponding levels.
Article 18 The National Audit Office shall, in accordance with law, conduct
audit supervision over various financial revenues and expenditures generated by the
central bank and its branches during the performance of their functions and duties.
The National Audit Office’s report to the Premier of the State Council on audit
results of the central budget implementation and other government revenues and
expenditures shall include audit results of financial revenues and expenditures of the
central bank.
Article 19 The term “enterprises and financial institutions with State-owned
capital controlling their shares or playing a leading role” in Article 21 of the Audit Law
shall include:
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(1) enterprises and financial institutions with State-owned capital accounting for
over 50% of the total amount of capital (shares); and
(2) enterprises and financial institutions with State-owned capital accounting for
50% or less of the total amount of capital (shares) and investors of State-owned capital
having the actual controlling interest.
Audit supervision by audit institutions over enterprises and financial institutions
listed in the preceding paragraph shall be conducted in accordance with the provisions
of the second paragraph of Article 18 and Article 20 of the Audit Law, unless otherwise
prescribed by the State Council.
Article 20 The term “construction projects fully or mainly financed by
government investment” in Article 22 of the Audit Law shall include:
(1) projects fully financed by government funds such as budgetary investment
funds, special construction funds, funds raised by governments in the form of debts,
etc.; and
(2) projects financed by government funds accounting for over 50% of the total
investment but less than the total investment, or projects financed by government funds
accounting for 50% or less of the total investment but with governments having the
actual control over the construction and operation of such projects.
Audit institutions shall, in accordance with law, conduct audit supervision over
the implementation of the overall budgets or estimates, the annual budget
implementation, the annual final accounts, the individual project settlement and the
final accounts upon completion of the construction projects prescribed in the preceding
paragraph; while auditing the construction projects prescribed in the preceding
paragraph, audit institutions may investigate the authenticity and lawfulness of the
construction project funds obtained by the designers, constructors, suppliers and other
units directly involved therein.
Article 21 The term “social security funds” in Article 23 of the Audit Law shall
include social insurance funds, social relief funds, social welfare funds as well as other
special funds used for developing social security undertakings; the term “public
donations” shall include donations in the forms of money, negotiable securities,
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physical articles, etc. derived from domestic and overseas donors.
Article 22 The term “projects for which aid or loans are provided by
international organizations or foreign governments” in Article 24 of the Audit Law
shall include:
(1) projects for which international organizations, foreign governments and their
agencies provide loans to the Chinese Government and its agencies;
(2) projects for which international organizations, foreign governments and their
agencies provide to Chinese enterprises, institutions and other organizations loans
guaranteed by the Chinese Government and its agencies;
(3) projects for which international organizations, foreign governments and their
agencies provide aid and grants to the Chinese Government and its agencies;
(4) projects for which international organizations, foreign governments and their
agencies provide aid and grants to units authorized by the Chinese Government to
manage the relevant fund and money; and
(5) other projects for which international organizations, foreign governments and
their agencies provide aid and loans.
Article 23 With regard to the special matters relating to the State revenues and
expenditures, including budget management, management and use of State-owned
assets, etc., audit institutions may, in accordance with the procedures and methods
prescribed by the Audit Law, these Regulations as well as other relevant provisions of
the State, carry out special audit investigations among the relevant local authorities,
departments and units.
Article 24 Audit institutions shall determine the scope of their audit jurisdiction
on the basis of auditees’ fiscal and financial subordination; where the scope of their
audit jurisdiction cannot be determined on the basis of such fiscal and financial
subordination, it shall be determined on the basis of the supervisory and managerial
relationships involving State-owned assets.
Audit supervision over financial institutions, enterprises, institutions and
construction projects involving two or more investors of State-owned capital shall be
carried out by audit institutions that have audit jurisdiction over the major investors
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thereof.
Article 25 Audit institutions at various levels shall carry out audit supervision in
accordance with the determined scope of their audit jurisdiction.
Article 26 Units that are subject to audit supervision by audit institutions in
accordance with law shall place their internal audit work under the professional
guidance and supervision of audit institutions.
Units that are subject to audit supervision by audit institutions in accordance with
law may, in light of the need of their internal audit work, join the self-regulatory
organizations for internal auditing established in accordance with law. Audit
institutions may intensify their professional guidance and supervision over the internal
audit work with the help of such self-regulatory organizations.
Article 27 When carrying out audits or special audit investigations, audit
institutions have the power to verify the relevant audit reports produced by public audit
firms.
When finding any violation of laws, regulations or professional codes committed
by public audit firms in verifying the relevant audit reports produced by them, audit
institutions shall transfer the cases to the relevant competent authorities for
investigating for liability in accordance with law.
Chapter IV Power of Audit Institutions
Article 28 When audit institutions carry out audit supervision in accordance
with law, auditees shall provide them with the materials relating to government
revenues and expenditures or financial revenues and expenditures in accordance with
the provisions of Article 31 of the Audit Law. The responsible persons of auditees shall
provide written guarantees for the authenticity and completeness of the materials
provided by auditees.
Article 29 Finance departments, taxation departments and other departments
(including the units directly subordinate to them) of the people’s governments at
various levels shall submit the following materials to audit institutions at the
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corresponding levels:
(1) the budgets of the people’s governments approved by the people’s congresses
at the corresponding levels, the budgets given by the official replies of finance
departments of the people’s governments to the departments at the corresponding levels
(including the units directly subordinate to them), the annual revenue plans of the
departments in charge of collecting budgetary revenues, and the budgets given by the
official replies of the departments at the corresponding levels (including the units
directly subordinate to them) to their subsidiary units;
(2) the monthly reports, annual reports and final accounts related to the
implementation of budgetary revenues and expenditures at the corresponding levels
and the fulfillment of the revenue plans of the departments in charge of collecting
budgetary revenues;
(3) the comprehensive annual statistical reports and bulletins on fiscal and
taxation work, and the rules and systems on fiscal affairs, budget, taxation, finance,
accounting, etc.; and
(4) the drafts of consolidated final accounts drawn up by the departments at the
corresponding levels (including the units directly subordinate to them).
Article 30 When inquiring about the account of an auditee in a financial
institution in accordance with the provisions of Article 33 of the Audit Law, an audit
institution shall present the Notice for Assistance to Inquiry about Accounts of Units
signed by the responsible person of the audit institution of the people’s government at
or above the county level; when inquiring about the deposits of an auditee in a financial
institution in the name of an individual, an audit institution shall present the Notice for
Assistance to Inquiry about Personal Deposits signed by the head of the audit
institution of the people’s government at or above the county level. The financial
institutions concerned shall provide necessary assistance and materials of proof, and
the audit institutions and auditors have the obligation to keep confidentiality thereof.
Article 31 The term “assets that are obtained in violation of the provisions of
the State” in Article 34 of the Audit Law shall include:
(1) fiscal appropriations, physical articles and loans from financial institutions
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which are obtained through fraud and deception;
(2) assets obtained on account of preferential policies granted to them in violation
of the provisions of the State, such as State subsidies, allowances, discounted interest,
interest exemption, tax reduction, tax exemption and tax refund;
(3) moneys, negotiable securities and physical articles charged from others in
violation of the provisions of the State;
(4) proceeds from disposing of State-owned assets in violation of the provisions of
the State; and
(5) other assets obtained in violation of the provisions of the State.
Article 32 When, in accordance with the provisions of Article 34 of the Audit
Law, sealing up the relevant materials of an auditee and the auditee’s assets that are
obtained in violation of the provisions of the State, an audit institution shall present the
Seal-up Notice signed by the responsible person of the audit institution of the people’s
government at or above the county level, and the seal shall be removed after the audit
institution obtains testimonial materials relating to the audit matters or takes other
measures in accordance with law. The period of seal-up shall not exceed seven days;
when necessary under special circumstances, the period may be extended appropriately
upon the approval of the responsible person of the audit institution of the people’s
government at or above the county level. However, the maximum extension shall not
exceed seven days.
The audit institution may assign the auditee the responsibility of taking care of the
sealed materials and assets, and the auditee shall not destroy or transfer them without
authorization.
Article 33 With regard to the relevant audit matters, audit institutions may, in
accordance with the provisions of Article 36 of the Audit Law, notify the relevant
government departments of the results of audits and special audit investigations of
auditees, or make such results public.
Audit institutions may, after consulting the relevant competent authorities, publish
the results of verification of the relevant audit reports produced by public audit firms,
along with the results of audits and special audit investigations that are made public.
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Where the results of audits and special audit investigations of listed companies are
to be made public, audit institutions shall notify the listed companies of the content to
be made public five days prior to the publication.
Chapter V Audit Procedures
Article 34 Audit institutions shall determine their annual audit priorities and
prepare their annual plans of audit assignments in accordance with laws, regulations
and other provisions of the State as well as the requirements by the people’s
governments at the corresponding levels and audit institutions at higher levels.
Where audit institutions, in their annual plans of audit assignments, determine to
audit enterprises and financial institutions with State-owned capital controlling their
shares or playing a leading role, they shall, within seven days from the date of the
determination, notify the enterprises and financial institutions included in such plans.
Article 35 Audit institutions shall form audit teams in accordance with their
annual plans of audit assignments, investigate and find out the relevant situations of
auditees, prepare audit programs and serve audit notifications on auditees three days
prior to the audit.
Article 36 The term “special circumstances” in Article 38 of the Audit Law
shall include:
(1) the circumstances where urgent issues are addressed;
(2) the circumstances where auditees are suspected of seriously violating laws or
regulations; and
(3) other special circumstances.
Article 37 Auditors shall abide by the following provisions in carrying out
audits:
(1) carrying out audits by means of inspection, inquiry, attendance at physical
inventory counting, external confirmation by letter, etc.;
(2) obtaining materials of proof by means of collecting original documents and
physical articles or reproduction and taking photographs;
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(3) taking notes of the meetings and conversations relating to the audit matters or
demanding the provision of minutes thereof from auditees; and
(4) recording the process of auditing as well as the verification results.
Article 38 The testimonial materials obtained through investigations by auditors
from the relevant units and individuals shall be signed or sealed by the providers;
where such signatures or seals cannot be obtained, auditors shall state the reasons
therefor.
Article 39 Audit teams shall solicit opinions from auditees in writing prior to
submitting their audit reports to audit institutions. The auditees shall, within 10 days
from the date of receipt of the audit reports from the audit teams, give their opinions in
writing; if no written opinions are given within 10 days therefor, it is deemed that the
auditees do not challenge the audit reports.
Audit teams shall, on the basis of the written opinions of auditees, double check
the relevant facts and make necessary revisions to their audit reports, and thereafter
they shall submit the reports to audit institutions along with the written opinions of
auditees.
Article 40 After the relevant audit departments and the designated units of audit
institutions or their staff members have reviewed and judged the audit reports
submitted by audit teams and the relevant audit matters, audit institutions shall proceed
in accordance with the following provisions:
(1) producing their audit reports that include an audit appraisal on the audit
matters, opinions on handling or punishing the violations of the provisions of the State
on government revenues and expenditures or financial revenues and expenditures,
opinions on referring the cases to the relevant competent authorities or units and
opinions on improving the management of government revenues and expenditures or
financial revenues and expenditures;
(2) within the limits of their statutory functions and powers, making audit
decisions on handling or punishing the violations of the provisions of the State on
government revenues and expenditures or financial revenues and expenditures that
shall be handled or punished in accordance with law; and
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(3) putting forward recommendations to the relevant competent authorities or
units as to imposing sanctions on the relevant persons who shall be investigated for
liability in accordance with law; or referring the cases to the relevant competent
authorities that have jurisdiction over the handling or punishment of violations in
accordance with law; or referring the cases to the judicial organs if a crime is suspected
to have been committed.
Article 41 Where, during the audit, an audit institution finds out a case that has
impaired interests of the State or public interests, but there is no clear justification for
handling and punishment, the institution shall report the case to the people’s
government at the corresponding level and the audit institution at the next higher level.
Article 42 Auditees shall implement audit decisions in accordance with the time
limits and requirements set by audit institutions. Where the money shall be turned over
to the State treasury or the special fiscal account, auditees shall do so in compliance
with the fiscal administration system and the relevant provisions of the State. Where
the implementation of audit decisions requires the assistance of the relevant competent
authorities or units, audit institutions shall make requests for assistance in writing.
Article 43 Audit institutions at higher levels shall supervise the audit work of
audit institutions at lower levels in accordance with law.
Where an audit decision made by an audit institution at a lower level violates the
relevant provisions of the State, an audit institution at a higher level may order the one
at a lower level to modify or repeal the audit decision, or directly decide to modify or
repeal that decision; where it is necessary to make a new audit decision upon repeal of
the original decision, the audit institution at a higher level may order the one at a lower
level to do so within a prescribed time limit, or directly make the new audit decision.
Where an audit institution at a lower level should have made, but has failed to
make, an audit decision, an audit institution at a higher level may order the one at a
lower level to make the audit decision within a prescribed time limit, or directly make
the audit decision.
Article 44 When carrying out special audit investigations, audit institutions
shall present written notices of such investigations to the local authorities, departments
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or units under investigation and explain the relevant matters; the relevant local
authorities, departments or units shall submit themselves to such investigations, give
truthful information and provide relevant materials.
Where, during special audit investigations, it is found that the departments or
units that are subject to audit supervision by audit institutions in accordance with law
violate the provisions of the State on government revenues and expenditures or
financial revenues and expenditures, or commit other violations of laws or regulations,
auditors and audit institutions may, in accordance with the provisions of the Audit Law
and these Regulations, produce audit reports, make audit decisions, or refer the cases to
the relevant competent authorities or units to investigate them for liability in
accordance with law.
Article 45 Audit institutions shall establish a sound audit archive system in
accordance with the relevant provisions of the State.
Article 46 The service of audit documents by audit institutions may be done by
direct delivery, by mail or by other methods. Where the documents are directly
delivered, the date of receiving such documents as signed by the auditee on the receipt
or certified by a witness shall be deemed as the date of service of the documents; where
the documents are served by mail, the date of receiving such documents stated on the
receipt for postal delivery shall be deemed as the date of service of the documents;
where the documents are served by other methods, the date signed or stated as the date
of receipt shall be deemed as the date of service of the documents.
The categories, contents and formats of audit documents made by audit
institutions shall be specified by the National Audit Office.
Chapter VI Legal Liability
Article 47 Where an auditee, in violation of the provisions of the Audit Law and
these Regulations, refuses to provide or delays providing materials relating to the audit
matters, fails to provide authentic and complete materials, or refuses or obstructs
inspection, the audit institution shall order it to make corrections and may criticize it in
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a circular and give a warning; where the auditee refuses to make corrections, the audit
institution may impose a fine of not more than 50,000 yuan on it, and a fine of not
more than 20,000 yuan each on the person in charge with competent accountability and
other persons with competent accountability, and where the audit institution considers
that such persons shall be given sanctions, it shall put forward recommendations to the
relevant competent authority or unit as to giving sanctions; if a crime is constituted,
criminal liability shall be investigated for in accordance with law.
Article 48 In handling the violations of budgets or other violations of the
provisions of the State on government revenues and expenditures committed by the
departments at the corresponding levels (including the units directly subordinate to
them) or by the people’s governments at lower levels, audit institutions shall, within
the limits of their statutory functions and powers and in accordance with the provisions
of laws and administrative regulations, take the measures prescribed in Article 45 of
the Audit Law on the merits of each case.
Article 49 In handling the violations of the provisions of the State on financial
revenues and expenditures committed by an auditee, the audit institution shall, within
the limit of its statutory functions and powers, take the measures prescribed in Article
45 of the Audit Law on the merits of the case, and may criticize it in a circular and give
a warning; the audit institution shall confiscate the illegal income, if any, and impose
on it a fine of not less than one time but not more than five times the illegal income; if
there is no illegal income, a fine of not more than 50,000 yuan may be imposed; a fine
of not more than 20,000 yuan may be imposed each on the person in charge with
competent accountability and other persons with competent accountability, and where
the audit institution considers that such persons shall be given sanctions, it shall put
forward recommendations to the relevant competent authority or unit as to giving
sanctions; if a crime is constituted, criminal liability shall be investigated for in
accordance with law.
Where laws and administrative regulations provide otherwise for the handling and
punishment of auditees’ violations of the provisions of the State on financial revenues
and expenditures, such provisions shall prevail.
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Article 50 An audit institution shall, before making a penalty decision on
imposing a large-sum fine, notify the auditee and the persons concerned of their right to
a hearing. The specific rate for a large-sum fine shall be specified by the National Audit
Office.
Article 51 Where an audit institution puts forward recommendations for
handling or punishing an auditee as well as imposing sanctions each on a person in
charge with competent accountability and other persons with competent accountability,
the relevant competent authority or unit shall make a decision in a timely manner in
accordance with law and notify the audit institution of the results thereof in writing.
Article 52 Where an auditee refuses to accept an audit decision made by an
audit institution in conducting audit supervision in accordance with the provisions of
Articles 16 and 17 of the Audit Law as well as Article 15 of these Regulations, it may,
within 60 days from the date of service of the audit decision, request the people’s
government at the corresponding level that the audit institution belongs to for making a
ruling, which shall be a final ruling.
An audit institution shall, in its audit decision, notify the auditee of the channel
and time limit for requesting a ruling.
The implementation of an audit decision shall not be suspended during the period
of making a ruling. However, the implementation of the audit decision may be
suspended under one of the following circumstances:
(1) where the audit institution deems it necessary to suspend the execution of the
decision;
(2) where the people’s government that accepts the request for a ruling deems it
necessary to suspend the execution of the decision; or
(3) where, on application by the auditee, the people’s government that accepts the
request for a ruling decides to suspend the execution of the decision after it deems such
suspension reasonable.
A request for a ruling shall be handled by the legislative affairs office of the
people’s government at the corresponding level. A ruling shall be made within 60 days
from the date of receipt of the request; upon approval of the responsible person of the
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legislative affairs office, the time limit may be extended appropriately where special
circumstances so require, and the extension shall be notified to the audit institution and
the auditee requesting for the ruling; however, the maximum extension shall not exceed
30 days.
Article 53 Where an auditee refuses to accept an audit decision made by an
audit institution, it may apply for administrative reconsideration or bring an
administrative lawsuit in accordance with law, except where a ruling may be requested
against the audit decision as specified in Article 52 of these Regulations.
An audit institution shall, in its audit decision, notify the auditee of the channel
and time limit for applying for administrative reconsideration or bringing an
administrative lawsuit.
Article 54 Auditees shall report the implementation of audit decisions to audit
institutions in writing. Audit institutions shall inspect the implementation of their audit
decisions.
Where an auditee fails to implement an audit decision, the audit institution shall
order it to implement the decision within a time limit; if the auditee fails to do so by
the expiry of the time limit, the audit institution may apply to the people’s court for
compulsory enforcement and put forward recommendations to the relevant competent
authority or unit for imposing sanctions each on the person in charge with competent
accountability and other persons with competent accountability.
Article 55 Where an auditor abuses his powers, commits illegalities for his
personal gain, neglects his duties, or divulges State secrets or business secrets that he
has acquired, he shall be given a sanction in accordance with law; if a crime is
constituted, criminal liability shall be investigated for in accordance with law.
The money and things of value obtained by auditors in violation of law or
discipline shall be recovered or confiscated, or the auditors shall be ordered to return
such money and things of value or pay compensations in accordance with law.
Chapter VII Supplementary Provisions
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Article 56 The terms “not less than” and “not more than” in these Regulations
shall include the given figures.
Where the last day of the time period specified in Article 52 of these Regulations
falls on an official holiday, the first workday after the holiday shall be taken as the
expiry date of that time period. Other time periods specified in the Audit Law and these
Regulations shall be counted on the basis of workdays, excluding official holidays.
Article 57 Provisions on the implementation of economic accountability audits
shall be separately formulated.
Article 58 These Regulations shall be effective as of May 1, 2010.