Article 1    These Provisions are formulated in accordance with the Audit Law of the People's Republic of China for the purpose of standardizing audit review, strengthening internal control and management mechanism of audit institutions, conducting audit strictly in accordance with the law and ensuring the quality of audit.

Article 2     The term "audit review" mentioned herein refers to the examination of audit reports, audit opinions and audit decisions and the production of review opinions thereof by internal review organizations or full-time reviewers of the audit institutions prior to the finalization of audit reports, production of audit opinions and making of audit decisions by the audit  institutions.

The terms "audit opinions" and "audit decisions" mentioned herein refer to the draft documents of such opinions and decisions.

Article 3    Review organizations of the CNAO shall review audit opinions and audit decisions about audit items which require the imposition of sanctions or penalties.

Local audit institutions may determine which audit reports, audit opinions or audit decisions of their own making should be reviewed according to their specific situations.

Article 4    Review organizations of the audit institutions are legal departments within these institutions.

Audit institutions without such legal departments shall establish their own review organizations or full-time reviewers.

Article 5    Review organizations or full-time reviewers shall perform the following duties:
(1) To review audit reports, audit opinions and audit decisions and produce opinions of review in writing;
(2) To instruct review work conducted by audit institutions at lower levels;
(3) To understand and conduct research of universal problems existing in audit review and to put forward recommendations to leaders of their own institutions for improving implementation of the law in the administrative aspects of audit.

Article 6     Review organizations or full-time reviewers shall review audit reports, audit opinions and audit decisions on the basis of audit facts confirmed by the audit teams and in accordance with relevant laws, regulations and universally binding decisions and orders.

Article 7     Review organizations or full-time reviewers shall review the following aspects of audit reports, audit opinions and audit decisions:
(1) Whether facts related to the audit items are clear;
(2) Whether testimonial materials already collected possess the features of objectivity, relevance, sufficiency and compliance;
(3) Whether laws, regulations and universally binding decisions and orders
are correctly applied;
(4) Whether opinions of audit evaluation are appropriate;
(5) Whether determination of the nature of violations and recommendations for imposing sanctions or penalties are properly made;
(6) Whether audit procedures are in accordance with relevant stipulations.

Article 8    Audit teams shall provide the review organizations or full-time reviewers with the following materials:
(1) Audit reports, audit opinions and audit decisions;
(2) Audit working papers and testimonial materials;
(3) Written opinions produced by the audited bodies concerning the audit reports (the version used for soliciting opinions);
(4) Explanations by the audit teams about opinions produced by the audited bodies;
(5) Applicable laws, regulations and universally binding decisions and orders;
(6) Other materials required by review organizations or full-time reviewers.

Article 9    Where it is found that in the audit reports, audit opinions and audit decisions major facts are unclear and with insufficient evidence as their testimony,  the review organizations or full-time reviewers shall notify the audit teams for correction within the prescribed time limit.

Article 10   After reviewing audit reports, audit opinions and audit decisions, review organizations or full-time reviewers shall produce the following opinions of review:
(1) Where audit procedures are in accordance with relevant stipulations,  major facts are clear and with sufficient evidences as their testimony, correct opinions are produced in determining the nature of  concerned violations, appropriate recommendations are put forward about the imposition of sanctions or penalties, laws, regulations and universally binding decisions and orders are correctly applied and audit evaluation and audit opinions are properly made, affirmative opinions shall be produced;
(2) Where after relevant corrections, major facts are still unclear and with insufficient evidence as their testimony, negative opinions shall be produced;
(3) Where there are no legal grounding for opinions about the determination of the nature of violations or recommendations about the imposition of sanctions or penalties,  negative opinions shall be produced;
(4) Where incorrect opinions are made about the determination of the nature of violations or inappropriate recommendations about the imposition of sanctions or penalties are put forward,  laws, regulations and universally binding decisions and orders are wrongly applied, audit evaluation and audit recommendations are improperly made, revising opinions shall be produced;
(5) Where audit procedures are not in accordance with relevant stipulations, correcting opinions and suggestions of improvement shall be produced.

Article 11     After reviewing audit reports, audit opinions and audit decisions,  review organizations or full-time reviewers shall produce their opinions of review in writing.    

Written opinions of review shall clarify the following items:
(1) Titles of the reviewed audit reports, audit opinions and audit decisions;
(2) Opinions of review;
(3) Dates on which written opinions of review are produced.

Written opinions of review shall be signed by individuals conducting the review, heads of the review organizations or full-time reviewers.

Article 12     Review organizations or full-time reviewers shall produce their opinions of review within 5 days of their receipt of review materials related to the audit reports or within 3 days of their receipt of review materials related to audit opinions and audit decisions.  Under special circumstances, time limits for the production of review opinions may be extended appropriately.  However, the maximum time limit for producing review opinions about audit reports shall not exceed 10 days while that for producing review opinions about audit opinions and audit decisions shall not exceed 5 days.

Where the period of review spans holidays and festivals, such holidays and festivals shall be excluded from the calculation of the reviewing period.

Where situations described in Article 9 of these Provisions are encountered, the time spent on additions and corrections shall be excluded from the period of review.

Article 13    At the completion of audit review, review organizations or full-time reviewers shall submit to competent leaders of the audit institutions their written opinions of review together with the review materials.

Article 14    Written opinions of audit review shall be included in audit files.

Article 15    The authority to interpret these Provisions rests with the CNAO.

Article 16    These Provisions shall come into effect as of January 1, 1997.