Audit law revised to tighten official supervision
Updated: 2005-10-23 11:14
China is amending its audit law to strengthen supervision over leading
officials by enlarging the scope of audit and diversifying audit means.
The draft amendment to the audit law was first read at the 18thsession of the
Standing Committee of the National People's Congress (NPC), which began on
Li Jinhua, China's top auditor, told lawmakers at the meeting that a new
clause has been written into the draft amendment. It reads that audit organs are
entitled to audit leading officials of government departments, state-own
enterprises and state-holding companies and financial institutions concerning
their performance in fulfilling their duty in financial and related economic
activities during their tenure.
To guarantee the independence of the audit organs and the authenticity of the
audit report, the draft amendment adds a new clause to the audit law, which says
that the appointment and dismissal of chief auditors of audit organs at or above
the county level shall be endorsed by audit organs at their immediate higher
level, rather than the local governments, said Li.
To enlarge the scope of audit, the draft amendment suggests a change of those
subject to audit from "state financial institutions" as stipulated in Clause 18
of the existing audit law to "state financial institutions or state-holding
Another change is from "state construction projects" to "construction
projects with investment mainly from the government or state-owned enterprises."
To intensify audit, the draft amendment requires that those subject to audit
shall provide electronic balance sheet and their accounts in banks to the audit
organs along with other necessary materials.
The audit organs are also entitled to require the leading officials of the
organizations being audited to sign a written confirmation of the authenticity
of the documents they provide.
The draft amendment says the audit organs are entitled to check the bank
accounts of the organizations subject to audit, as long as they are approved by
chief auditors at the county level or above.
To promote close cooperation between the audit organs and other government
organs, the draft amendment suggests that the audit organs shall be entitled to
ask public security, supervision, finance, taxation, price and administrative
organs as well as the customs for help in carrying out