According to Audit Law of the People's Republic of China and other related rules and regulations, the duties and responsibilities of audit institutions in China include as follows:
1.Audit institutions shall exercise supervision through auditing over the budget implementation, final accounts and other revenues and expenditures of departments (including their subordinate units) at the corresponding levels and of the people's governments at lower levels.
2.The National Audit Office shall, under the leadership of the Premier of the State Council, exercise supervision through auditing over the implementation of the budget of the Central Government as well as other revenues and expenditures, and submit audit reports thereof to the Premier. Local audit institutions at various levels shall, under the respective leadership of the governors of provinces, chairmen of autonomous regions, mayors, prefecture heads and heads of counties or districts as well as under the leadership of audit institutions at the next higher levels, exercise supervision through auditing over the budget implementation at the corresponding levels as well as other revenues and expenditures, and submit audit reports to the people's governments at the corresponding levels and to the audit institutions at the next higher levels.
3.The National Audit Office shall exercise supervision through auditing over the revenues and expenditures of the Central bank. Audit institutions shall exercise supervision through auditing over the assets, liabilities, profits and losses of the State-owned monetary organizations.
4.Audit institutions shall exercise supervision through auditing over the revenues and expenditures of the State institutions as well as other public institutions utilizing financial funds.
5.Audit institutions shall exercise supervision through auditing over the assets, liabilities, profits and losses of the State-owned enterprises.
6.Supervision through auditing over the enterprises and monetary organizations with State-owned capital controlling their shares or playing a leading role shall be stipulated by the State Council.
7.Audit institutions shall exercise supervision through auditing over the budget implementation and final accounts of the construction projects fully or primarily financed by government investment.
8.Audit institutions shall exercise supervision through auditing over the revenues and expenditures of the social security funds, public donations and other relevant funds and capital managed by governmental departments and other units authorized by the government.
9.Audit institutions shall exercise supervision through auditing over the revenues and expenditures of projects with aids or loans provided by international organizations or governments of other countries.
10.Audit institutions shall, in accordance with the relevant provisions of the State, supervise through auditing the performance of economic accountabilities held by the responsible persons of state organs and other units subject to auditing as stipulated by law, for one‘―s term of office and in respect of the revenues, expenditures as well as relevant economic activities of the district, department or organization the auditees belong to.
11.Audit institutions shall exercise supervision through auditing over the items that shall be audited by audit institutions as stipulated by other laws, administrative rules and regulations, in accordance with the provisions of this law as well as relevant laws, administrative rules and regulations.
12.With regard to the particular items relating to State revenues and expenditures, audit institutions shall have the right to carry out special investigations through audit from relevant localities, departments and units and report the results thereof to the people's governments at the corresponding levels and to the audit institutions at the next higher levels.
13.Audit institutions shall determine their audit jurisdiction on the basis of the auditees' financially subordinate relations or the supervisory and managerial relations with respect to the State assets of auditees.
Where a dispute arises on audit jurisdiction between audit institutions, the matter shall be determined by an audit institution superior to both disputing parties.
Audit institutions at higher levels may authorize audit institutions at lower levels to audit the items under their jurisdiction as stipulated from paragraph 2 of Article 18 to Article 25 in this Law. Audit institutions at higher levels may directly audit the major items under the jurisdiction of audit institutions at lower levels. However, unnecessary repetitive audits shall be avoided.
14.Organizations subject to auditing by audit institutions as stipulated by law, shall establish and improve their internal auditing systems in accordance with the relevant provisions of the State; such internal auditing thereof shall be subject to the professional guidance and supervision of audit institutions.
15.If the organizations audited by public audit firms are subject to auditing by audit institutions as stipulated by law, Audit institutions shall, in accordance with provisions of the State Council, have the right to check relevant audit reports produced by public audit firms.
