Article 1    These Provisions are formulated in accordance with Article 37 of the Audit Law of the People's Republic of China for the purpose of reinforcing management of audit planning and ensuring scientific, orderly and efficient performance of audit.

Article 2     The term "audit planning" mentioned herein refers to the overall arrangement of audit assignments and special audit investigations made by audit institutions on a yearly basis.

An audit plan shall consist of the two parts of word explanation and tabular expression.  The part of word explanation shall include fulfillment of the previous annual audit plan, basis for the preparation of the current-year audit plan, major task indicators and major measures to be adopted to fulfill the current-year plan.  The part expressed in tabular form shall include various indicators of the planned tasks, responsible units and timing of plan fulfillment.  

An audit plan in general shall include audit assignments uniformly organized or authorized by audit institutions at higher levels, assignments from various leaders and assignments arranged by the concerned audit institutions themselves.

Article 3    Audit institutions shall prepare audit plans and conduct audit according to assignments determined by the audit plans.

Article 4     The term "management of audit planning" mentioned herein refers to the preparation, coordination and adjustment of audit plans as well as  reporting on and review and benchmarking of the implementation of the audit plans.

Article 5    The system of uniform leadership with responsibilities attached to various levels shall be practiced for management of audit planning.  The CNAO shall be responsible for managing audit plans prepared for assignments uniformly organized by itself and those plans for auditing organization at its corresponding level and shall provide instructions for nation-wide management of audit planning.  Audit institutions above the county level shall be responsible for managing audit planning of their respective localities.

The coordination departments of audit institutions at various levels shall take specific charge of the management of audit planning.

Article 6    For management of audit planning, general guidelines and policies concerning development of the society and national economy and the conduct of audit shall be implemented.

Article 7    The preparation of audit plans shall adhere to the principle of making sufficient use of audit resources, emphasizing audit priorities, arranging tasks on a balanced basis and avoiding repetitions and overlappings.

Article 8    Where assignments are uniformly organized by the CNAO, its various professional audit departments shall produce their opinions by the end of October each year while its coordination department shall summarize such opinions and thereby draft relevant audit plans.  The CNAO shall solicit opinions from relevant local audit institutions and audit offices dispatched by the CNAO concerning its draft plans and shall issue the plans after the reviewing and finalizing process carried out at business meetings attended by the Auditor General and the Deputy Auditor Generals.

Article 9   Relevant professional audit departments of the CNAO, audit offices dispatched by the CNAO and local audit institutions shall keenly carry out tasks planned for assignments uniformly organized by the CNAO.

Relevant professional audit departments of the CNAO shall be responsible for preparation of specific implementation programs for assignments uniformly organized by the CNAO, submit them for approval to relevant leaders of the CNAO and organize their implementation thereafter.

Relevant professional audit departments of the CNAO and audit offices dispatched by the CNAO shall prepare their own audit plans according to the plans for assignments uniformly organized by the CNAO and their own actual situations, submit such plans by the end of February to the coordinating department of the CNAO for integration and coordination and report to competent leaders of the CNAO for review, approval and issuance.

Provincial audit institutions shall prepare their own audit plans in accordance with the plans for assignments uniformly organized by the CNAO and their own actual situations, submit such plans by the end of March to the CNAO for filing.

Article 10    Audit institutions shall prepare their audit plans and determine their audit assignments and subjects of special audit investigation within their statutory audit jurisdiction, unless uniform organization is carried out by audit institutions at higher levels.

Article 11    Where audit institutions at higher levels directly audit material items which are within the jurisdiction of audit institutions at lower levels, such arrangements shall be included in audit plans prepared for audit of organizations at the former's corresponding levels and shall be notified in time to relevant local audit institutions.

Article 12    Once the audit plans are issued, relevant audit institutions shall make efforts to fulfill the plans.  

Article 13    Where necessary, adjustments shall be made to audit plans and reported for approval according to the following stipulations:
(1) Adjustments to plans for assignments uniformly organized by the CNAO shall be made with relevant adjusting opinions put forward by professional audit departments of the CNAO.  Adjustments to audit plans prepared for audit of organizations at the CNAO's corresponding level shall be made with relevant adjusting opinions put forward by professional audit departments of the CNAO and audit offices dispatched by the CNAO, submitted to the coordinating department of the CNAO by the end of August, thereafter reported to competent leaders of the CNAO for review and approval and finally issued and implemented by the end of September;
(2) Adjustments to audit plans prepared by the local audit institutions shall be reviewed and approved by the audit institutions in charge of the issuance of such plans;
(3) Adjustments to plans for assignments from various leaders shall be reported for approval in time and shall be implemented thereafter.

Article 14    Audit institutions shall practice the system of reporting on the implementation of audit plans.

Professional audit departments of the CNAO, audit offices dispatched by the CNAO and provincial audit institutions shall submit written reports to the CNAO on audit plans for assignments uniformly organized by the CNAO.  Major items of such reports shall include progress of plan implementation, main problems found during such implementation and in the course of audit as well as the adoption of relevant measures and production of recommendations.

Professional audit departments of the CNAO, audit offices dispatched by the CNAO and provincial audit institutions shall submit their reports on implementation of audit plans respectively in October of the current fiscal year and April of the following fiscal year.

Article 15    Audit institutions at various levels shall review and benchmark the implementation and management of audit plans.  Major items of review and benchmarking shall include the following:  preparation and submission of plans, feedback on plan implementation, timeliness and completeness of the plans, compliance and reasonableness of the planned arrangements and the quality and effect of the fulfillment of plans.

Article 16    Audit institutions at various levels shall keenly promote  modernization of the means for managing audit plans and upgrade the efficiency and standard of such management.

Article 17    The authority to interpret these Provisions rests with the CNAO.

Article 18    These Provisions shall be implemented as of January 1, 1997.