According to Audit Law of the People's Republic of China and other related rules and regulations, the powers of audit institutions in China are:

 

  1. Audit institutions shall have the power to require auditees to provide, in accordance with the request by audit institutions, their budgets or plans for other revenues and expenditures, statements about budget implementation, final accounts and financial reports, electronic data for revenues and expenditures stored and processed by computers and necessary computer technology documents, information about their accounts in monetary organizations, audit reports produced by public audit firms and other information relating to their revenues and expenditures. Auditees shall not refuse to do so, or delay the provision or make false reports.

 

The heads of auditees shall be held responsible for the authenticity and integrity of such financial and accounting information provided by them.

 

  2.Audit institutions shall, in conducting audit, have the power to examine the accounting documents, account books, financial reports, information system used for the management of electronic data for revenues and expenditures, and other information and assets relating to revenues and expenditures of the auditees, and the auditees shall not refuse to produce those materials.

 

  3.Audit institutions shall, in conducting audit, have the power to carry out investigations among units or individuals concerned into matters relating to audit items and obtain relevant testimonial materials. The units and individuals concerned shall support and assist the audit institutions in their work by providing them with truthful information and relevant testimonial materials.

 

Audit institutions, with the approval of the responsible persons of audit institutions of people’s governments at or above the county level, have the power to inquire about the accounts of auditees in monetary organizations.

 

Audit institutions, with the proof of auditees’ depositing public funds in personal accounts and approved by the primary responsible persons of audit institutions of perople’s governments at or above the county level, have the power to inquire about the saving deposits of auditees in the name of individuals in monetary organizations.

 

  4.When audit institutions conduct audit, the auditees shall not transfer, conceal, falsify or destroy their accounting documents, account books, financial reports or other information relating to their revenues and expenditures, and shall not transfer or conceal the assets that are in their possession but obtained in violation of the provisions of the State.

 

Audit institutions shall have the power to stop acts of auditees in violation of stipulations specified in the preceding paragraph; If necessary, audit institutions, with the approval of heads of audit institutions at or above the county level, have the power to seal relevant materials and assets obtained in violation of the provisions of the State; If it is necessary to freeze relevant saving deposits of auditees in monetary organizations, audit institutions shall appeal to the People’s court for its adoption.

 

Audit institutions shall have the power to stop the ongoing acts of the auditees relating to the revenues and expenditures in violation of the provisions of the State. If they do not succeed in stopping such acts, they shall, with the approval of the responsible persons of audit institutions of people’s governments at or above the county level, notify the departments of public finance and the competent authorities to suspend allocating funds directly related to the acts in violation of the provisions of the State regarding the revenues and expenditures or to suspend the use of the funds already allocated.

 

Adoption of the measures specified in the preceding two paragraphs by audit insitutions shall not hinder the lawful business activities, production and operation of the auditees.

 

  5.If audit institutions consider that the regulations of the competent departments at higher levels on revenues and expenditures implemented by the auditees contravene the law or the administrative rules and regulations, they shall suggest that the competent departments concerned make corrections. If the departments concerned fail to make corrections, the audit institutions shall refer the matter to the competent organs for disposition according to law.

 

  6.Audit institutions may issue circulars about their audit results to the relevant governmental departments or publish such results to the public.

Audit institutions shall, in circulating or publishing audit findings, keep State secrets and trade secrets of the auditees in accordance with the law and observe the relevant provisions of the State Council.

 

  7.Audit institutions may, in performing the duty of supervision through auditing, ask other institutions in charge of public security, supervision, finance, taxation, customs, price, administration of industry and commerce, etc. for assistance.