Article 1    These Provisions are formulated according to Article 30 of the Audit Law of the People's Republic of China and other relevant stipulations for the purpose of strengthening instruction and supervision provided for public audit organizations by audit institutions, promoting healthy development of public audit and catering to the requirements of the socialist market economy.

Article 2     The term "public audit organizations" mentioned herein refers to organizations which independently conduct public audit according to the law as well as the Association of Certified Public Accounts of P.R.China (hereinafter referred to as the CACPA) and its various chapters which carry out professional management of the former.

Article 3    Audit institutions shall perform the duty of instructing and supervising public audit organizations together with financial departments and in accordance with relevant laws and regulations.

The CNAO shall, together with the Ministry of Finance, be responsible for instructing and supervising public audit organizations all over the country.  

Audit institutions at the level of provinces, autonomous regions and municipalities directly under the central government shall, together with respective financial departments at their corresponding level, be responsible for instructing and supervising public audit organizations within their respective localities.

Article 4    Where audit institutions find, in the course of audit, that there are falsification of facts and other violations in the audit reports and reports of asset evaluation which are submitted by the audited bodies but are produced by public audit organizations or certified public accountants, appropriate corrections shall be made according to the law while the CACPA and its relevant chapters shall be notified for imposing sanctions upon the concerned public audit organizations or certified public accountants.

Article 5    Audit institutions shall be responsible for auditing supervision over revenues and expenditures of the public audit organizations.

Article 6    Audit institutions shall summarize relevant information about public audit and submit such summaries to competent organizations according to relevant regulations.

Article 7    Audit institutions shall, together with financial departments, create favorable conditions for the development of public audit and shall coordinate with competent authorities to solve problems detrimental to the normal practice of public audit.

Article 8    Audit institutions, financial departments and other relevant departments shall jointly draft, formulate or review and approve laws, regulations and important rules on public audit.

Article 9    Audit institutions shall, together with financial departments, supervise the performance of duties by the CACPA and its various chapters according to their articles of association.

Article 10    Personnel dispatched by audit institutions to hold leading positions in the CACPA and its various chapters shall make regular work reports to the audit institutions.

Article 11    Where a public audit organization is temporarily attached to an audit institution, the audit institution shall strengthen its management of and supervision over the latter's personnel administration and financial affairs according to relevant stipulations.

Article 12   The authority to interpret these Provisions rests with the CNAO.

Article 13    These Provisions shall come into effect as of January 1, 1997.