Implementing Regulations of the Audit Law of the People's Republic of China (Revised in 2010)

Order of the State Council No. 571

February 11, 2010

The Implementing Regulations of the Audit Law of the People's Republic of China (Revised in 2010), which were revised and adopted at the 100th executive meeting of the State Council on February 2, 2010, are hereby promulgated and shall come into effect as of May 1, 2010.

Premier: Wen Jiabao

Implementing Regulations of the Audit Law of the People's Republic of China (Revised in 2010)

(Promulgated by Order of the State Council No. 231 on October 21, 1997, revised and adopted at the 100th executive meeting of the State Council on February 2, 2010)

Chapter I General Provisions

Article 1 These Regulations are hereby formulated in accordance with the provisions of the Audit Law of the People's Republic of China (hereinafter referred to as the Audit Law).

Article 2 For the purpose of the Audit Law, the term "audit" shall refer to the acts of legal and independent inspection by an audit institution of an auditee's accounting vouchers, account books, accounting statements and other information and assets related to fiscal revenues and expenditures and financial revenues and expenditures, as well as supervision over the truthfulness, legitimacy and benefits of fiscal revenues and expenditures as well as financial revenues and expenditures.

Article 3 For the purpose of the Audit Law, the term "fiscal revenues and expenditures" shall refer to the revenues and expenditures incorporated in budget management as well as the following revenues and expenditures which are not incorporated in budget management in accordance with the provisions of the Budget Law of the People's Republic of China and other relevant provisions of the state:
1. Administrative charges;
2. Revenues of state-owned resources and assets;
3. State-owned capital operation incomes that should be turned over;
4. The funds raised by government borrowings and debts; and
5. Other financial funds not incorporated in budget management.

Article 4 For the purpose of the Audit Law, the term "financial revenues and expenditures" shall refer to various revenues and expenditures of state-owned financial institutions, enterprises and institutions as well as other entities that are subject to audit supervision by the audit institutions, which shall be subject to accounting and auditing in accordance with the state provisions on financial and accounting.

Article 5 Audit institutions shall carry out auditing supervision pursuant to the functions and responsibilities, limits of authority and procedures prescribed by the Audit Law and these Regulations as well as other relevant laws and regulations.
Audit institutions shall base their audit assessment on laws, regulations on fiscal revenues and expenditures and financial revenues and expenditures as well as the provisions of relevant state policies, standards, project objectives. Where the auditees violate the state laws, regulations on fiscal revenues and expenditures and financial revenues and expenditures, audit institutions shall make decisions to deal with and punish them within the scope of their statutory functions and powers.

Article 6 All entities and individuals shall have the right to report to the audit institutions in respect of the acts against the state laws, regulations on fiscal revenues and expenditures and financial revenues and expenditures of the entities subject to audit supervision of the audit institutions, which shall, upon receipt of the report, handle the matter in a timely manner.

Chapter II Audit Institutions and Auditors

Article 7 The National Audit Office shall, under the leadership of the Premier of the State Council, take charge of the audit work throughout the country and perform the functions and responsibilities prescribed by the Audit Law and the State Council.
Local audit institutions at all levels shall, under the leadership of the administrative leader of the people's governments at the corresponding level and the audit institution at a superior level, be responsible for the audit work within their respective administrative areas and perform the functions and responsibilities prescribed by laws, regulations and the people's government at the corresponding level.

Article 8 As for the people's governments of provinces and autonomous regions which have set up dispatched offices, the audit institutions of the dispatched offices shall be responsible and report on their work to the dispatched offices and audit institutions of people's governments of provinces and autonomous regions, and their audit work shall be directed chiefly by the audit institutions of people's governments of provinces and autonomous regions.

Article 9 The dispatched offices of audit institutions shall, in accordance with laws, regulations and rules of the audit institutions, carry out audit work within the scope authorized by the audit institutions and be free from any interference by any administrative organ, public organization or individual.

Article 10 Bases for the compilation of draft budgets for annual expenses by audit institutions mainly include:
1. Laws and regulations;
2. Decision and requirements of the people's government at the corresponding level;
3. Annual audit work plan of the audit institution;
4. Standards for staffing quota; and
5. Implementation of the budget of the previous year and factors for the variation thereof in the current year.

Article 11 The system of technical qualifications of the auditing specialty for auditors shall be practiced. Specific measures shall be determined in accordance with the relevant state provisions.
Audit institutions may, as required by work, retain persons with related professional knowledge with respect to audit matters to participate in audit work.

Article 12 In handling audit matters, when auditors encounter any of the following circumstances, they shall apply for withdrawal; the auditees also have the right to apply for the withdrawal of the auditors:
1. Having husband-and-wife relationship, direct blood relationship, collateral relationship by blood in three generations as well as close relationship by marriage with the responsible person and other person in charge concerned of the auditee;
2. Having economic interests with the auditee or the audit matters; and
3. Having other relations of interest with the auditee, the audit matters, and the principal or relevant in-charge persons of the auditee which may adversely affect fair performance of official duties.
Withdrawal of auditors shall be decided by the responsible person of an audit institution; withdrawal of the responsible person of an audit institution shall be decided by the people's government at the corresponding level or the responsible person of the audit institution at a superior level.

Article 13 In the appointment and removal of person in charge and their deputies of local audit institutions at all levels, views of the audit institution at a superior level shall be sought in advance.

Article 14 Persons in charge of audit institutions not having any of the following circumstances during the tenure of office shall not be removed or replaced arbitrarily:
1. Being investigated of criminal responsibility for crime;
2. Having been given administrative sanctions for serious violation of law and negligence of duty and no longer suitable for the position of the person-in-charge of an audit institution;
3. Failure to perform duties for more than one year due to health reasons; and
4. Failure to meet other requirements of the position prescribed by the state.

Chapter III Functions and Responsibilities of Audit Institutions

Article 15 Audit institutions shall carry out audit supervision over the specific budget implementation organized by the financial department of the people's governments at the corresponding level, the collection of budgetary revenues of the departments responsible for collecting budgetary revenues at the corresponding level, the budget implementation and final accounts of the departments and entities having direct relations of budget turnover and allocations with the finance department of the people's government at the corresponding level and the budget implementation and final accounts of the people's governments at lower levels as well as other circumstances on fiscal revenues and expenditures. Upon the approval of the people's governments at the corresponding level, the audit institutions shall carry out audit supervision over other entities and projects which have obtained financial funds in respect of authenticity, legality and beneficial results of the acceptance and utilization of financial funds.

Article 16 Audit institutions shall carry out audit supervision over the following contents concerning the implementation of the fiscal revenues and expenditures at the corresponding level:
1. Information concerning the approval of budget by the finance departments to the various departments (including subordinate unit) at the corresponding level pursuant to the provisions of laws and administrative regulations and adjustment in the budget implementation at the corresponding level and changes in fiscal revenues and expenditures;
2. Information concerning the collection of budgetary revenues by the departments responsible for collecting budgetary revenues pursuant to the provisions of laws and administrative regulations and other relevant provisions of the state;
3. Information concerning the allocations of budgetary expenditures at the corresponding level by the finance departments pursuant to the approved annual plans on budget and fund utilization, and the prescribed budgetary levels and procedures;
4. Information concerning the allocation and management of the financial transfer payment funds and handling of settlement and transfer by the finance departments pursuant to the provisions of laws and administrative regulations and the financial management system;
5. Information concerning the handling of collection, allocation, withholding of the budgetary revenues, and the appropriation of the budgetary expenditures by the state treasury in accordance with the relevant provisions of the state;
6. Information concerning annual budget implementation by the various departments (including subordinate unit) at the corresponding level;
7. Information concerning the revenues and expenditures of the budgetary funds under special management in accordance with the relevant provisions of the state; and
8. Information concerning the implementation of other budgets as prescribed by the laws and regulations.

Article 17 The report on audit results as referred to in Article 17 of the Audit Law shall contain the following particulars:
1. Information on the budget implementation and other fiscal revenues and expenditures at the corresponding level;
2. Audit assessment made by the audit institution on budget implementation and other fiscal revenues and expenditures at the corresponding level;
3. Problems existing in budget implementation and other fiscal revenues and expenditures at the corresponding level and measures taken by the audit institution in accordance with law;
4. Views and suggestions put forth by the audit institution for improving the work of budget implementation and other fiscal revenues and expenditures at the corresponding level; and
5. Other information the report of which is required by the government at the corresponding level.

Article 18 The National Audit Office shall carry out audit supervision in accordance with law on overall financial revenues and expenditures of the Central Bank and its branches occurring in the performance of functions and responsibilities.
The report on audit results on central budget implementation and other fiscal revenues and expenditures submitted by the National Audit Office to the Premier of the State Council shall include information on auditing of the financial revenues and expenditures of the Central Bank.

Article 19 "Enterprises or financial institutions wherein state-owned assets occupy a holding position or dominating position" as referred to in Article 21 of the Audit Law shall include:
1. Enterprises wherein the state-owned assets account for over fifty percent of the total capital of the enterprises; and
2. Enterprises wherein the state-owned assets account for less than fifty percent of the total capital of the enterprises, however investors of the state-owned assets in essence possess the holding right.
Unless it is otherwise provided for by the State Council, the audit institutions shall carry out their audit supervision over enterprises or financial institutions specified in the preceding paragraph with reference to Paragraph 2 of Article 18 and Article 20.

Article 20 "Government invested construction projects and construction projects chiefly with the investment of state-owned assets" as referred to in Article 22 of the Audit Law shall include:
1. Projects which use all financial funds within the budget, such as investment capital, special construction funds and funds raised by the government borrowings and debts and etc.;
2. Projects which do not use all financial funds, however, financial funds account for over fifty percent of the total capital of the projects; or financial funds account for less than fifty percent of the total capital of the projects, however the governments possess the holding right in terms of the construction and actual control of the projects.
Audit institutions shall carry out their audit supervision over the implementation of the overall budget or estimated budget of the construction projects, the implementation of the annual budget, annual final accounts, settlement of single project and final accounts of completed projects in accordance with law; when carrying out audit on the projects specified in the preceding paragraph, the audit institutions may investigate into the authenticity and legality of the construction project funds obtained by the design, construction, purchasing and other entities directly relating to the state construction projects.

Article 21 Social security funds as referred to in Article 23 of the Audit Law shall include social insurance funds, social relief funds, social welfare funds as well as other special funds for the development of the cause of social security; and "funds donated by society" as referred to shall include money, marketable securities and articles in kind donated by both domestic and foreign sources.

Article 22 "Items of assistance and loans of international organizations and foreign governments" as referred to in Article 24 of the Audit Law shall include:
1. Items of loans provided by international organizations, foreign governments and their institutions to the Chinese Government and its institutions;
2. Items of loans provided by international organizations, foreign governments and their institutions to Chinese enterprises, institutions and other organizations guaranteed by the Chinese Government and its institutions;
3. Items of assistance and grants provided by international organizations, foreign governments and their institutions to the Chinese Government;
4. Items of assistance and grants provided by international organizations, foreign governments and their institutions to societies entrusted by the Chinese Government to administer the relevant foundation funds and capital; and
5. Other items of assistance and loans of provided by international organizations and foreign governments.

Article 23 Audit institutions may, in accordance with the Audit Law, the audit procedures and methods prescribed herein and other provisions of the state, carryout special audit investigations on the relevant local departments and entities in respect of the particular matters concerning the state fiscal revenues and expenditures such as budget management or management and utilization of state-owned assets and etc.

Article 24 Audit institutions shall, in accordance with the relations of budgetary and financial subordination of the auditees, determine the scope of audit jurisdiction; where the scope of audit jurisdiction cannot be determined in accordance with the relations of budgetary and financial subordination, it shall be determined in accordance with the relations of supervision and administration of the state-owned assets.
As for enterprises and institutions and construction projects with investment by two or more than two investment bodies of the state-owned assets, the audit supervision on them shall be carried out by the audit institutions with audit jurisdiction over the chief investment body.

Article 25 Audit institutions at all levels shall carry out audit supervision in accordance with the determined scope of audit jurisdiction.

Article 26 As for the entities which are audit and supervision objects of audit institutions in accordance with law, such entities shall accept the operational guidance and supervision from the audit institutions on their internal audit work.
Entities which are audit and supervision objects of audit institutions in accordance with law may, based on the needs of their internal audit work, join the lawfully established self-regulatory organizations of internal audit. The audit institutions may strengthen their operational guidance and supervision on the internal audit work of the entities through the self regulatory organizations of internal audit.

Article 27 Audit institutions shall, in carrying out audits or special audit investigations, have the right to verify the relevant audit reports issued by the social audit institutions.
When verifying the relevant audit reports issued by the social audit institutions, if the audit institutions find any circumstance of violation of laws, regulations or practice rules by the social audit institutions, such institutions shall be transferred to the relevant competent authorities for investigation of criminal responsibilities in accordance with the law.

Chapter IV Limits of Authority of Audit Institutions

Article 28 When audit institutions are carrying out audit supervisions in accordance with the law, the auditees shall, in accordance with the provision of Article 31 of the Audit Law, provide the audit institutions with the relevant information and material on the fiscal revenues and expenditures or financial revenues and expenditures. The person in charge of the auditees shall make a written commitment on the authenticity and integrality of the materials submitted by their respective unit.

Article 29 Finance departments, taxation departments and other departments (including subordinated entities) of people's governments at all levels shall submit the following information to the audit institutions at the corresponding levels:
1. Budgets of the corresponding levels approved by people's congress at the corresponding levels, budgets of all departments (including subordinated entities) of the corresponding levels approved by the finance departments of people's governments at the corresponding levels, annual revenue plans of budget revenue collection departments as well as budgets of all subordinate entities approved by all departments (including subordinated entities) at the corresponding levels;
2. Monthly statements, yearly statements and final accounts on the implementation of budget revenues and expenditures and the fulfillment of revenue plans of budget revenue collection departments at the corresponding levels;
3. Comprehensive yearly statistical statements on finance and taxation work, briefings, and rules and regulations relating to finance, budget, taxation, fiscal matters and accounting; and
4. Draft final accounts of departments compiled by all departments (including subordinated entities) at the corresponding levels.

Article 30 Where audit institutions inquire into the auditees' accounts in financial institutions in accordance with Article 33 of the Audit Law, they shall take the letter of notice soliciting assistance in inquiring into bank accounts issued by the audit institutions of the people's governments at or above the county level with them; where audit institutions inquire into the auditees' deposit in financial institutions in individual names, they shall take the letter of notice soliciting assistance in inquiring into individual deposits issued by the person in charge of the audit institutions of the people's governments at or above the county level with them. The relevant financial institutions shall provide assistance and proving materials. The audit institutions and auditors shall have the obligation to keep the relevant information confidential.

Article 31 "Assets acquired in contravention of the state provisions" as referred to in Article 34 of the Audit Law shall include:
1. Financial allocations, materials and bank loans acquired through falsification and cheating;
2. Assets acquired through enjoyment of such preferential policies as state subsidy, assistance, premium, interest exemption, tax reduction, tax exemption and tax refund in contravention of state provisions;
3. Money, marketable securities and goods in kind collected from other persons in contravention of state provisions;
4. Benefits acquired through disposing of state-owned assets in contravention of state provisions; and
5. Other assets acquired in contravention of state provisions.

Article 32 Where the relevant materials and assets acquired in contravention of state provisions of the auditees are sealed up by the audit institutions in accordance with Article 34 of the Audit Law, the audit institutions shall take the seal notice issued by the person in charge of the audit institutions of the people's governments at or above the county level with them, and collect the evidential materials related to the audit matters in accordance with the law or lift the seal after taking other measures. The time limit for seal shall not be longer than 7 days. Where an extension is necessary because of special situation, upon approval of the person in charge of the audit institutions of the people's governments at or above the county level, the time limit may be extended. However, such extension shall be no longer than 7 days.
As for the sealed materials and assets, audit institutions may appoint auditees to retain them. The auditees shall not destroy or transfer such materials and assets without permission.

Article 33 Audit institutions may, in accordance with Article 36 of the Audit Law, report to the relevant government departments about the audit matters or announce their audit and special audit investigation results on the auditees to the society.
Audit institutions may, upon negotiation with the relevant competent authorities, also announce the audit results on the audit reports issued by social audit institutions in their audit and special audit investigation results on the auditees to the society.
Where audit institutions intend to announce their audit and special audit investigation results on the listed companies to the society, they shall notify the listed companies of the contents intended to announce 5 days in advance.

Chapter V Audit Procedures

Article 34 Audit institutions shall, in accordance with the provisions of laws, regulations and other relevant state provisions and requirements of the people's government at the corresponding level and the audit institution at a superior level, determine the priorities in the yearly audit work and compile an annual audit item plan.
Where audit institutions determine to carry out audit on the enterprises or financial institutions wherein state-owned assets occupy a holding position or dominating position, they shall, within 7 days as of the date of make such decisions, notify the enterprises and financial institutions included in the annual audit item plan.

Article 35 Audit institutions shall, in accordance with their annual audit item plan, organize audit teams to investigate the relevant situations of the auditees, compile audit plans and serve the audit notice to the auditees 3 days before the exercise of audit.

Article 36 "Special circumstance" as referred to in Article 38 of the Audit Law shall include:
1. Handling urgent matters;
2. Where the auditees are suspected for serious violations of laws or regulations; and
3. Other special circumstances.

Article 37 In the exercise of audit, auditors shall proceed in accordance with the following provisions:
1. Exercising audit by means of checking, inquiring, supervising inventory counts and sending confirmation letters and etc.;
2. Obtaining evidential materials by means of gathering original materials, original goods or duplication and photography;
3. Making records of contents of meetings and conversations relating to audit matters or require the auditees to provide the recorded material of meetings; and
4. Making records of the proceedings and results of audit.

Article 38 The evidential materials obtained by auditors from investigations among entities and individuals concerned should have the signature or seals of the providers; in respect of materials unable to obtain the signature or seals of the providers, auditors should state the reasons therefor.

Article 39 Prior to the submission of audit reports to audit institutions, audit teams shall seek the views of the auditees in writing. The auditees shall, within ten days of receipt of the audit reports, submit their views in writing. No submission of views in writing within ten days of the receipt of the audit reports shall be deemed as having no objection.
Audit teams shall examine the views of the auditees in writing, further verify the information, make necessary revision to the audit reports and submit the audit reports and the views of the auditees in writing to audit institutions.

Article 40 Upon verification and hearing on the audit reports issued by the audit teams and the relevant audit matters by relevant operation organs and special organs or personnel of audit institutions, the audit reports submitted shall be handled by the audit institutions in accordance with the following provisions:
1. Submitting audit reports of audit institutions, which shall include: audit assessment on audit matters, opinions put forward on handling and punishing acts of fiscal revenues and expenditures and financial revenues and expenditures in violation of state provisions, opinions on transferring the matters to the competent authorities and entities, opinions on improving management on fiscal revenues and expenditures and financial revenues and expenditures;
2. With respect to acts of fiscal revenues and expenditures and financial revenues and expenditures in violation of state provisions which shall be handled and punished according to law, making decisions to deal with and punish them within the scope of their statutory functions and powers;
3. As for the personnel concerned who shall be investigated into for their responsibilities in accordance with the law, audit institutions shall give their suggestions on penalties to the relevant competent organs and entities; as for those who shall be handled and punished by the relevant competent organs, they shall be transferred to such organs; those who are suspected of committing crimes shall be transferred to judicial authorities.

Article 41 Audit institutions shall report to the people's governments at the corresponding level and the audit institutions at a superior level when encountering matters infringing on state interests and public interests of society the basis of handling and penalties for which has not been explicitly defined.

Article 42 The auditees shall carry out the audit decisions in accordance with the time limit and requirements prescribed by the audit institutions. In respect of the funds which ought to be turned over, the auditees shall, in accordance with the fiscal management system and the relevant provisions of the state, turn over such funds to the state treasury or the special financial accounts. In case the audit decisions need the assistance from the competent organs and entities concerned in implementation, audit institutions shall submit such decisions to such organs and entities for assistance in implementation in writing.

Article 43 The audit institutions at higher levels shall supervise those at lower levels on their audit work.
In case the audit decisions made by the audit institutions at lower levels are in violation of state provisions, the audit institutions at higher levels may instruct the audit institutions at lower levels to change or cancel such decisions, or directly make the decisions on changing or canceling such decisions; where the audit institutions at lower levels need to make new audit decisions after the formal ones are cancelled, the audit institutions at higher levels may instruct the audit institutions at lower levels to make new audit decisions within the prescribed time limit, or make the new decisions directly.
Where the audit institutions at lower levels fail to make audit decisions they should have made, the audit institutions at higher levels may instruct the audit institutions at lower levels to make such audit decisions within the prescribed time limit, or make such audit decisions directly.

Article 44 Audit institutions shall, when carrying out special audit investigations, present a written notice on special audit investigation and explain the relevant circumstances; the localities, departments and entities concerned shall accept such investigations, report the circumstances accurately and provide the relevant information.
In special audit investigations, in case the supervised departments, entities of the audit institutions have other acts of fiscal revenues and expenditures and financial revenues and expenditures in violation of state provisions, the special audit investigators and audit institutions may, in accordance with the provisions of the Audit Law and these Regulations, make audit decisions or transfer them to the competent organs and entities concerned for investigation of responsibilities.

Article 45 Audit institutions shall establish and improve the audit archive system pursuant to relevant state provisions.

Article 46 Audit institutions may, when serving audit papers, directly serve the audit papers or serve the audit papers by post. In the case of those served directly, the date of signature for receipt on the receipt indicated by the auditees or the date of receipt certified by witnesses shall be the date of service; in the case of those served by post, the date of receipt indicated on the receipt shall be the date of service; in case of those served by other means, the date of signature for receipt or the date of receipt shall be the date of service.
The varieties, contents and formats of such audit documents shall be determined by the National Audit Administration.

Chapter VI Legal Liabilities

Article 47 If the auditees, in violation of the provisions of the Audit Law and these regulations, refuse or delay to provide information relating to audit matters, or provide false and incomplete information, or refuse and hinder examinations, audit institutions shall order a rectification and may circulate a criticism and give a warning; those which refuse to make rectifications may be imposed a fine of less than RMB 50,000. With respect to the person in charge held directly responsible and other persons directly responsible of the auditee, they shall be imposed a fine of less than RMB 20,000. Those whom audit institutions hold that shall be punished, suggestions for punishment shall be put forth to the competent organs and entities concerned. If a crime is constituted, the criminal responsibility shall be investigated.

Article 48 With respect to the acts of the various departments (including subordinate entities) at the corresponding level and the governments at the lower levels in contravention of the budget or other acts of fiscal revenues and expenditures in contravention of state provisions, audit institutions shall, within the scope of legal authority, take the treatment measures prescribed in Article 45 of the Audit Law in the light of different circumstances.

Article 49 With respect to the acts of financial revenues and expenditures of auditees in contravention of state provisions, audit institutions shall, within the scope of legal authority, take the treatment measures prescribed in Article 45 of the Audit Law in the light of different circumstances, such as circulating a public criticism or giving a warning; if there are illegal gains, such gains shall be confiscated and the person in question shall be imposed a fine more than one time and less than five times of the amount of the illegal gains; those with no illegal gains shall be imposed a fine of less than RMB 50,000. With respect to the persons in charge held directly responsible and other persons directly responsible of the auditees whom audit institutions hold that shall be punished, suggestions for punishments shall be put forth to the competent organs and entities concerned. If a crime is constituted, the criminal responsibility shall be investigated.
Where laws and administrative regulations have separate provisions for handling and punishing the acts of financial revenues and expenditures in contravention of state provisions by the auditees, those provisions shall prevail.

Article 50 Audit institutions shall, making a penalty decision of a relatively large amount fine, inform the auditees and the persons concerned of their right to request for holding a hearing. The specific standard for relative large amount fine shall be specified by the National Audit Administration.

Article 51 With respect to suggestions for handling and punishing the auditees put forward by audit institutions or suggestions for punishing persons in charge held directly responsible and other persons directly responsible of the auditees, the competent organs and entities concerned shall make a timely decision in accordance with the law and notify the audit institutions of the results in writing.

Article 52 Where the auditees are not satisfied with the audit decisions made by audit institutions in accordance with Articles 16 and 17 of the Audit Law and Article 15 of these Regulations, they may, within 60 days upon the service of the audit decisions, submit such audit decisions to the people's governments at the corresponding level of the audit institutions for arbitration. The arbitration made by the people's governments at the corresponding level shall be final.
Audit institutions shall notify the auditees in their audit decisions of the approaches and time limit for applying for arbitration.
During the period of arbitration, the implementation of the audit decisions shall not be suspended. However, in any of the following circumstances, the implementation may be suspended:
1. Where suspension is deemed necessary by audit institutions;
2. Where suspension is deemed necessary by the people's government accepting the arbitration;
3. Where the auditees applied for suspension and the people's government accepting the arbitration deems the application reasonable and decides to suspend the implementation.
Arbitrations shall be handled by the legislative affairs department of the people's government. Arbitration awards shall be made within 60 days after receiving the application; where an extension is necessary because of a special situation, it may be extended upon the approval of the person in charge of the legislative affairs department. Audit institutions and auditees applying for arbitration shall be informed of the extension. However, the extension shall not exceed 30 days.

Article 53 Except for the audit decisions which may be submitted for arbitration as prescribed in Article 52, if the auditees are not satisfied with other audit decisions made by the audit institutions, they may apply for administrative reconsideration or bring an administrative lawsuit.
Audit institutions shall inform the auditees in their audit decisions of the approaches and time limit for applying for administrative reconsideration or bringing an administrative lawsuit.

Article 54 The auditees shall report the implementation of the audit decisions in writing to the audit institutions, which shall review the implementation of the audit decisions.
Where the auditees fail to implement the audit decisions, audit institutions shall order them to implement within a specified time limit; in case they fail to implement the audit decisions again within the specified time limit, audit institutions may apply to a People's Court for compulsory enforcement and suggest the competent organs and entities concerned to punish the persons in charge held directly responsible and other persons directly responsible of the auditees.

Article 55 Any auditor who abuses power, indulges in malpractices for selfish gains, neglects duties or discloses any state secret or trade secret known to them, shall be given punishments in accordance with the law; any auditor who commits a crime shall be investigated of criminal liability in accordance with the law.
Properties acquired by auditors in violation of law and discipline shall be recovered, confiscated or ordered to pay compensation according to law.

Chapter VII Supplementary Provision

Article 56 Such phrases as "not less than", "not more than" referred to in these regulations shall include the given figure.
If the last day of the period prescribed in Article 52 hereof is an official holiday, it shall expire on the first working day following that official holiday. Other periods prescribed in the Audit Law and these regulations shall be calculated in terms of working days, excluding official holidays.

Article 57 Regulations on the exercise of economic responsibility audit shall be separately formulated.

Article 58 These Regulations shall come into effect as of May 1, 2010.