Interim Provisions of the CNAO on Handling Assigned Items by Audit Institutions
(Promulgated on August 29, 1996)


Article 1    These Provisions are formulated in order that audit institutions will perform their duties of audit supervision while addressing items related to revenues and expenditures which are assigned by Party committees and governments at various levels (hereinafter referred to as assigned items).

Article 2    Audit institutions shall audit assigned items in accordance with written notifications from Party committees and governments at various levels.

Article 3    Audit institutions shall audit assigned items within their jurisdiction in accordance with the following stipulations:
(1) Where assigned items are audit items within the duties of audit institutions stipulated by the Audit Law of the People's Republic of China (hereinafter referred to as the Audit Law), they shall be audited according to statutory audit procedures;
(2)  Where assigned items are other items which should be audited by audit institutions according to stipulations of other laws and regulations, they shall be audited in accordance with the Audit Law and stipulations of other relevant laws and regulations.

Article 4    Where assignments are made with authorization from Party committees and governments at various levels, audit institutions shall audit
the concerned assigned items in accordance with requirements of the authorization, and shall at the end of the matter submit special reports to the authorizing Party committees and governments and put forward opinions or recommendations for imposing sanctions or penalties.

Audit offices dispatched to various departments by audit institutions shall audit assigned items authorized by their accommodating departments according to requirements of the authorization and shall at the end of the matter submit special reports to the authorizing departments.

Resident audit offices dispatched to various localities by the CNAO shall not audit assigned items entrusted by local Party committees, governments and other departments unless approved by the CNAO.

Article 5    Where review of special economic items related to revenues and expenditures is uniformly organized by relevant Party committees and governments and requires participation of audit institutions, the audit institutions shall appoint auditors to take part in such review according to the specific requirements.

Article 6    Where assigned items should be handled together with other competent departments according to requirements of the Party committees and governments, audit institutions shall carry out their work according to the following stipulations:
(1) Assigned items for which audit institutions bear the major responsibility shall be audited according to statutory audit procedures or requirements of Party committees and governments;
(2) Where special economic items related to revenues and expenditures are to be reviewed together with other government departments, audit institutions shall carry out their audit according to requirements of the Party committees and governments or procedures determined through mutual consultation;
(3) Where audit institutions are required to assist discipline inspection organizations and supervisory bodies in their handling of relevant economic cases, audit verifications shall be conducted according to specific mandates of the audit institutions and procedures determined through mutual consultation.  

Article 7    When audit institutions are handling assigned items related to revenues and expenditures entrusted by competent government departments at their corresponding levels, the entrusting departments shall consult the audit institutions in writing.   Audit institutions may suggest that the concerned departments entrust public audit organizations to conduct audit verifications or may assign their own auditors to assist in such audit verifications.  For material assigned items entrusted by government departments, audit institutions shall conduct audit verifications after the concerned departments have obtained due approval from governments at their corresponding levels and in accordance with requirements of the written replies from the concerned governments.

Where audit offices dispatched to various departments by audit institutions accept assigned items entrusted by their accommodating departments, these offices shall audit the above-mentioned assigned items according to the principles laid down in the previous article.

Article 8    Where judicial bodies require audit institutions to assist in their verification of economic cases, audit institutions shall, after the judicial bodies reach agreement through consultation with governments at their corresponding levels, conduct audit verifications according to their mandates and procedures determined between the audit institutions and the judicial bodies, unless otherwise stipulated by the law.

Article 9    While handling relevant assigned items from Party committees and governments at various levels, audit institutions shall differentiate various circumstances and assume responsibility according to the following principles:
(1) Where assigned items are handled independently or mainly by audit institutions, the audit institutions shall assume corresponding responsibility according to the law;
(2) With regard to economic items under review which are related to revenues and expenditures and are audited by audit institutions together with other government departments, the audit institutions shall assume responsibility together with other competent departments;  
(3)  When required to assist discipline inspection organizations and supervisory bodies in their handling of economic cases, audit institutions shall be responsible for results of verifying items related to revenues and expenditures.

Where audit offices dispatched to various departments by the audit institutions handle assigned items entrusted by their accommodating departments, these offices shall report to their respective departments and assume responsibility according to the principles laid down in the previous article.

Article 10     Where assigned items are entrusted to audit institutions by competent government departments at corresponding levels or judicial bodies, audit institutions shall be responsible for the results of verifying items related to revenues and expenditures.  Cases involving relevant responsible individuals to the degree of administrative or criminal responsibility shall be handled according to the law by competent authorities, supervisory bodies or judicial bodies.

Article 11    Where audit institutions independently audit assigned items within their jurisdiction but the audited bodies disagree with measures of sanction or penalty metered out by the audit institutions, the audited bodies may appeal to the audit institutions at the next higher levels for  review in accordance with stipulations laid down in the Provisions of Audit Institutions on Audit Review.

Where audit institutions together with other departments review assigned items related to revenues and expenditures but the audited bodies disagree with measures of sanction or penalty metered out jointly in the  names of  the audit institutions and the departments, the audited bodies may appeal for review to the administrative organizations superior to both the audit institutions and the government departments.

Assignors or trustors shall be responsible for the settlement of other disputes related to items that are audited by audit institutions but are assigned by Party committees and governments at various levels or with authorization from competent departments.

With regard to items that are audited by audit offices dispatched to government departments by audit institutions but are authorized by such departments or entrusted by units within such departments,  disputes arising thereof shall be settled with reference to the principles laid down in the previous three paragraphs of this article.

Article 12    Where auditors are appointed by their audit institutions to participate in handling relevant assigned items, serious problems encountered thereby shall be reported to the concerned audit institutions in time for relevant instructions.  Unless otherwise required by Party committees and governments at various levels, the auditors shall submit working reports to their audit institutions at the completion of their assigned items.

Article 13    Where auditors have interests involved in the assigned items, which shall impair fair handling of such assigned items, they shall withdraw from participating in handling the assigned items.

Article 14    When appointed to participate in relevant assigned items, auditors shall be true, fair, honest and dedicated to the public interest and shall safeguard secrets and exercise due care in their work.

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

Article 16    These Provisions shall come into effect as of the date of promulgation.