Auditing Regulations of Jiangsu Province

· Document Number：Decree No. 78 of the Standing Committee of the People’s Congress of Jiangsu Province

· Area of Law： Accounting Auditing

· Level of Authority： Provincial Local Regulations

· Date issued：01-21-2011

· Status： Effective

· Issuing Authority： Jiangsu Province

Decree of the Standing Committee of the People's Congress of Jiangsu Province
(No. 78)
Auditing Regulations of Jiangsu Province, adopted at the Twentieth Meeting of the Standing Committee of the Eleventh People's Congress of Jiangsu Province on January 21, 2011, are hereby promulgated and shall enter into effect as ofMay 1, 2011.
Standing Committee of the People's Congress of Jiangsu Province
January 21, 2011
Auditing Regulations of Jiangsu Province
(Adopted at the Twentieth Meeting of the Standing Committee of the Eleventh People's Congress of Jiangsu Province on January 21, 2011)
Chapter I General Provisions
Article 1 These Regulations are formulated in accordance with the Audit Law of the People's Republic of China, Regulations for the Implementation of the Audit Law of the People's Republic of China, and other laws and administrative regulations, in light of the specific situation of this Province, and for the purpose of strengthening audit and supervision, maintaining financial and economic order and social public interests, improving the financial efficiency, promoting clean government, and protecting the healthy development of the national economy and society.
Article 2 These Regulations apply to the audit and supervision activities conducted by the auditing organs in this Province.
Article 3 The fiscal revenue and expenditure of the local people's government at different levels and its departments and units, the financial revenues and expenditures of the state-owned financial institutions and enterprises and institutions, as well as other fiscal revenues and expenditures which shall be subject to audit in accordance with laws, administrative regulations and provisions of these Regulations shall be subject to audit and supervision according to law.
The auditing organs shall audit and supervise the truthfulness, legitimacy and effectiveness of revenue and expenditure of the audited units and economic responsibility of the principal person in charge in accordance with the authority and procedure stipulated by the laws, administrative regulations and these Regulations.
Article 4 The auditing organs shall strengthen the performance audit, and conduct the audit and assessment of economy, efficiency and effectiveness of fiscal funds and public resources configured and used by the audited unit.
The auditing organs may report results of performance audit to the people's government at the same level. Results of performance audit can be used for reference for the improvement of decision-making and management conducted by the people's government at the same level and its relevant units.
Article 5 The auditing organs shall determine the audit jurisdiction according to relationship of fiscal and financial subordination of the audited unit. Where audit jurisdiction cannot be determined according to fiscal and financial affiliation, audit jurisdiction shall be determined according to supervision and management relations of state-owned assets.
Financial institutions, enterprises, institutions, and construction projects invested by more than two state-owned capital investment entities shall be audited and supervised by the auditing organs with audit jurisdiction of the major investment subject. Where the major investment entities cannot be determined, it shall be administered by the auditing organs in the jurisdiction where the audited units are registered.
The terms of audit of economic responsibility shall determine audit jurisdiction in accordance with the cadre management authority.
Article 6 Auditing institutions at higher level can authorize within their jurisdiction the auditing organs at the lower levels to handle specific audit matters according to law. The authorized audit organ shall report the audit findings to the auditing institutions at higher level before providing the auditing report.
Article 7 The local people's government at or above the county level shall report annually the audit report on budget implementation and other financial revenues and expenditures conducted by the auditing organs to the Standing Committee of the People's Congress at the same level. The auditing report shall focus on the auditing of the budget implementation. If necessary, the Standing Committee of the People's Congress may pass a resolution on the auditing report.
The local people's government at or above the county level shall report the correction and solutions of the problems pointed out in the auditing reports to the Standing Committee of the People's Congress at the same level.
The local people's Congress Standing Committee at or above the county level may require the people's government at the same level to make a special audit report on fiscal and financial revenue and expenditure regarding major issues.
Article 8 The necessary funds for the auditing organs to perform their duties shall be included in the budget, and be guaranteed by the people's government at the same level.
The auditing organs can make a special application for funding regarding specific audit matters assigned by the people's government at the same level, which shall be arranged by the financial departments at the same level in accordance with the provisions.
The auditing organs shall conduct the audit according to law with no charge of fees.
Article 9 The auditing organs and auditing personnel shall exercise their powers according to law and perform in an objective and impartial, pragmatic and realistic, clean and dedicated, and secret-keeping manner while handling audit matters.
The auditors shall perform their duties according to law and be protected by law and subject to supervision according to law.
Chapter II Auditing Targets and Contents
Article 10 The auditing organs audit and supervise according to law the implementation of the budget conducted by financial departments of the people's government at the same level, the collection of budget revenues conducted by collecting departments of the budget revenue at the same level, budget implementation and final accounts of departments and units directly related to financial departments of the people's government at the same level in budget and funding, budget implementation and final accounts of people's government at the lower level and other financial income and expenditure according to law. Approved by the people's government at the same level, the auditing organs audit and supervise the acceptance and use of fiscal funds conducted by other units and projects for obtaining financial funds.
Article 11 Budget implementation and final accounts as well as other financial revenues and expenditures audited by the auditing organs shall mainly include the following items:
(1). A balanced budget situation;
(2). The arrangement of the major expenditures and availability of funds;
(3). The arrangements and use of the surplus revenue of the budget;
(4). The establishment and implementation of department budget system;
(5). The transfer payment to financial department at lower levels;
(6). The arrangements and use of assistance funds from the financial department at higher levels;
(7). The arrangement, allocation and use of special funds;
(8). The implementation of the resolution of the approved budget by the people's congress at the same level.
Article 12 The auditing organs shall supervise the following matters according to law while conducting the financial audit and supervision:
(1) The centralized treasury payment activities and revenue and expenditure related to the financial sector, branches of the people's bank, commercial banks, budget units, and other units;
(2) The management and usage of the transfer and payment of funds involved in relevant areas, departments and units in the course of financial transfer payment; and
(3) Government procurement units and relevant financial revenues and expenditures involved in the purchasing managers, procurement agencies, supervisory and administrative departments of procurement, budget management and institutions of disbursement of funds and other units in the course of government procurement activities.
Article 13 The auditing organs may, according to law, conduct the investigation of the related units and individuals during financial audit and supervision.
Article 14 The auditing organs shall, according to law, conduct audit and supervision of financial revenue and expenditure of the following local financial institutions which are state-owned or in which state-owned capital accounts for controlling or dominant position:
(1) Commercial banks of the city, and joint-stock commercial banks;
(2) Securities company and futures company;
(3) Insurance companies and insurance brokerage companies;
(4) Trust companies, financial leasing companies, finance companies, security companies and fund management Enterprise; and
(5) Other institutions or organizations engaged in financial business.
Article 15 The auditing organs shall conduct audit and supervision of financial revenue and expenditure of companies which are state-owned or in which state-owned capital accounts for a controlling or dominant position according to law.
Article 16 The auditing of the financial revenue and expenditures of local financial institutions and enterprises shall include the following items:
(1) Assets, liabilities, and ownership interest;
(2) Profit and loss, profit and its distribution and use;
(3) Transfer of ownership, disposal of assets, preservation and appreciation of capital;
(4) Foreign investment and financing;
(5) The payment of taxes;
(6) Development and implementation of internal management and control systems; and
(7) Other items stipulated by laws and regulations.
Article 17 The auditing organs shall conduct audit and supervision of financial revenues and expenditures of local state institutions and other business organizations using financial resources according to law.
Article 18 The audit of the financial revenue and expenditure of the institutional organizations conducted by the auditing organs shall include the following items:
(1) The revenue, expenditure, and surplus of the budget and raising, management and use of special funds;
(2) Financial revenue and expenditure, such as, non-tax revenue and production and operating income;
(3) The use of financial funds;
(4) The use, management and disposal of state assets;
(5) The formulation and implementation of regulations of internal management and control; and
(6) Other items stipulated by laws and regulations.
Article 19 The auditing organs shall, according to law, conduct audit and supervision of the budget implementation and final accounts of construction projects (hereinafter referred to as construction project) which the following assets are used in full or in part in the course of investment or financing:
(1) The full use of fiscal funds, state-owned assets, and social welfare funds managed by government departments and commissioned by the government;
(2). If the above-mentioned assets are not used up but the proportion of the above-mentioned assets in the total investment is more than 50%, or the proportion of the above-mentioned assets in the total investment is less than 50%, but has de facto actual control of construction and operation of the project.
The auditing organs shall conduct an investigation of the authenticity and legitimacy of the project funding obtained from the unit directly related to construction projects, such as, design, construction, survey, supervision, procurement, supply, tender agent, construction on consignment in the course of budget implementation and audit of the accounts of implementation of the construction project.
Article 20 The auditing of budget implementation and final account of construction projects conducted by the auditing organs shall include the following items:
(1) The source, management and use of funds;
(2) The performance of construction procedures;
(3) The implementation of budget and proposed budget;
(4) The final account for completed projects and transfer of assets;
(5) Project performance; and
(6) Other items stipulated by laws and regulations.
Article 21 Where the auditing organs determine the auditing of budget execution and final account of construction project according to law, account closing procedure shall be handled only after the auditing is conducted. Where the auditing organs find problems during auditing, the audited units shall correct it according to law.
Article 22 The auditing organs shall, according to law, conduct audit and supervision of financial revenue and expenditure of the following funds managed by the government and other units entrusted by the government:
(1) Social insurance, social relief, social welfare fund, as well as the special fund of the development of social security;
(2) Social donation in the forms of currency, securities, and material object obtained from home and abroad;
(3) Raised funds of social welfare;
(4) Housing accumulation funds, funds for low-cost housing, and special maintenance funds for residence; and
(5) Other relevant funds and financing.
The auditing organs, while auditing funds, shall extend the audit to financial revenue and expenditure of units directly related to funds and conduct investigation of related units and individuals.
Article 23 The auditing of financial revenue and expenditure of funds conducted by the auditing organs shall include the following items:
(1) The collection, expenses, arrangements and allocation of funds and financing;
(2) The use and performance of funds and financing;
(3) The management of funds and financing; and
(4) Other items stipulated by laws and regulations.
Article 24 The auditing organs shall, according to law, conduct audit and supervision of financial revenues and expenditures of the development, utilization and protection of resources, pollution control, ecological protection and other matters of resources and environment.
Article 25 The auditing of financial revenue and expenditure of matters of resources and environment conducted by the auditing organs shall include the following contents:
(1) The collection, distribution, use and management of funding related to resources and environment;
(2) The implementation of policy on resources and environment;
(3) The construction and performance of projects on resources and environment; and
(4) Other contents stipulated by laws and regulations.
Article 26 The auditing organs shall conduct audit and supervision of financial revenues and expenditures, repayment of borrowings and performance of loans and grants aided by international organizations and foreign governments in accordance with the generally accepted accounting and auditing standards at home and abroad.
Article 27 The auditing of financial revenue and expenditure of loans and grants from international organizations and foreign governments conducted by the auditing organs shall include the following contents:
(1) The preparation for financial reports and management of accounting data;
(2) Compliance with contractual agreements and source of funds, disbursement and accounting;
(3) The management, use, repayment of borrowings, and performance of funds (including domestic supporting funds); and
(4) Other contents stipulated by laws and regulations.
Article 28 The auditing organs shall, according to law, conduct audit and supervision of financial revenues and expenditures and implementation of financial responsibility of the principal person in charge of the local governmental organs and other audited objects during his tenure.
The auditing organs shall determine the economic responsibility performed by the specific duty, and make the report on auditing results through audit and investigation of fiscal and financial revenues and expenditures, and related economic activities of department and unit of the principal person in charge of the local governmental organs and other audited objects according to law while implementing the term economic responsibility audit.
The report on auditing results of term economic responsibility made by the auditing organs shall be regarded as an important basis of assessment, rewards and punishments, selection and promotion, appointment and removal of the person in charge.
Term economic responsibility auditing shall be implemented in accordance with national and provincial regulations.
Article 29 The auditing organs shall conduct audit and supervision of financial revenues and expenditures for the specific matters assigned by the people's government at the same level according to responsibilities stipulated by the people's government at the same level.
Article 30 The internal audit of units, which belong to the audited targets according to law, shall be under the guidance and supervision of the auditing organs.
The units belonging to the audited targets according to law shall establish a sound internal audit system in accordance with relevant state regulations, and establish an internal auditing organ or assign the internal audit staff according to the needs of the internal audit work, and participate in self-regulatory organization of the internal audit according to law. The auditing organs shall strengthen guidance and supervision of internal audit work through internal audit self-regulatory organization.
Article 31 The auditing organs have the right to verify auditing reports issued by public auditing institutions while conducting audit or special audit investigation according to law.
Where social audit institutions are found to violate laws, regulations or practice guidelines while the auditing organs examine auditing reports issued by the social audit institutions, the social audit institutions shall be transferred to the competent authority and be held accountable according to law.
Chapter III Authority and Limits of the Auditing Organs
Article 32 The auditing organs shall have the right to require the audited units to provide the following information in accordance with the time limit and requirements prescribed by the auditing organs; the audited units shall not refuse, delay,, nor give false information:
(1) The budget or plan for financial revenue and expenditure, budget implementation, final accounts, report on financial accounting, accounting books and accounting vouchers;
(2) The establishment of capital account, the contract, documents and meeting records related to auditing matters;
(3) Information on internal audit and the auditing report issued by the social audit agency;
(4) Electronic data and computer technology documents reflecting the revenue and expenditure, financial balance of payments and related business information; and
(5) Other information related to auditing matters.
The principal person in charge of the audited units shall make a written commitment of authenticity and integrity of information provided by the unit.
Article 33 The auditing organs shall have the right to inspect and test the electronic data information system of management of fiscal revenues and expenditures, financial revenues and expenditures, and related business information of the audited unit, and to require the audited unit to provide technical documentation of computer and other necessary assistance.
The electronic data information system of management of fiscal revenues and expenditures, financial revenues and expenditures, and related business information of the audited unit shall have data interface complying with national standards or industry standard. Where there is no above-mentioned data interface, the audited unit shall convert data required by the auditing organs into a readable format.
Article 34 The auditing organs can take such auditing methods as on-site audit, documentary audit, tracing audit and networking audit, and the audited units shall cooperate with them.
Article 35 For the violation of the audited units of the national and provincial provisions of fiscal and financial revenue and expenditure, where the auditing organs consider the relevant competent departments and units shall take responsibility, the auditing organs shall recommend relevant competent authorities and units to rectify. Where the relevant competent authorities and units do not correct the actions, the auditing organs shall refer to authoritative organs for handling according to law.
Article 36 The auditing organs shall establish a sound announcement system of audit results in accordance with national and provincial provisions, and publicize the audit findings in the form of special, categorized or comprehensive announcement in a timely manner.
Chapter IV Auditing Procedure
Article 37 The auditing organs shall determine the focus of the annual audit work and prepare the annual auditing project plan in accordance with laws, regulations and other relevant provisions, and the requirements of the people's government at the same level and the auditing organs at higher levels.
Where the auditing organs determine the list of enterprises and local financial institutions whose state-owned capital accounts for a controlling or dominant position to be audited in the annual plan for audit project, the auditing organs shall inform in writing, within seven working days starting from the date of confirmation, the enterprises and local financial institutions included in the annual audit project plan.
Article 38 Where the auditing organs handle the audit matters entrusted by the people's government at the same level, the auditing organs shall handle in accordance with the written notice and submit a special report.
Article 39 The auditing organs shall conduct the auditing and supervision in accordance with laws, regulations and procedures stipulated by the National Audit Office and follow appropriate steps and methods.
A simple method of operation can be implemented if the auditing organs audit and supervise the following departments and units:
(1) departments with no subordinate units or few subordinate units, and with simple financial revenue and expenditure and smaller size;
(2) enterprises and institutional organizations with small assets and liabilities and normal production activities, which have been audited and supervised in the year.
(3) departments and units with a sound system, strict internal management and standardized economic activities, which strictly abide by and implement the financial system and policy indicated by audit findings in the past years; or
(4) other departments and units which can be audited in a simple method of operation.
The specific method of simple operation shall be formulated separately by the provincial auditing organs.
Article 40 At the approval of the people's government at the same level, the auditing organs can directly perform the audit with the audit notice while handling the following urgent matters:
(1) important and emergent audit matters with a deadline requirement or requested to assist in investigation by the people's government at the same level, or the matters uncovered by visits and letters and reports;
(2) there is evidence or indication which suggests that the audited units and personnel may transfer, conceal, falsify or destroy information relevant to the fiscal revenue and expenditure and financial revenue and expenditure, or transfer and conceal the relevant assets or provide perjury by collusion with others; or
(3) other urgent matters.
Article 41 The audit may be terminated and relevant units shall be informed in written form after being approved by the person in charge of the auditing organs if one of the following situations occurs:
(1) the audited units have had a complete restructuring, and are no longer the target of audit and supervision;
(2) the audited units are bankrupt, merged or canceled;
(3) the audited units do not meet the audit conditions because of serious deficiencies in relevant information, or
(4) other situations of termination of the audit.
Article 42 The auditing organs shall carry out the dissemination and guidance of laws of finance and economics, listen fully to the views of the audited units, and conduct the analysis and research on problems identified in the course of audit, and supervise and urge the audited units to rectify. If necessary, the comprehensive audit report shall be submitted to the government, and suggestions on the correction and prevention of common problems shall be put forward.
Article 43 The audited units shall carry out the audit decision in accordance with the time limit and requirements prescribed by the auditing organs.
Where the relevant departments and units are needed to assist while a audit decision is being carried out, the relevant departments and units shall provide assistance and shall reply to the implementation of assistance to the auditing organs in written form within 30 working days after receiving the document for the assisting of the implementation of the audit.
Article 44 Where the auditing organs find matters which shall be handled and punished by relevant departments and units in the course of audit and supervision, they shall issue the handling document of audit transfer so as to transfer the matter to relevant departments for handling.
The departments and units accepting the audit transfer shall inform the auditing organs of the solution of the matter in written form within 60 working days after receiving the handling document of audit transfer.
Article 45 The auditing organs shall supervise and inspect the implementation of the audit decision on, the implementation situation of transfer and handling, and the implementation of rectification of audit reports and the special audit investigation report.
Chapter V Legal Liabilities
Article 46 Where the audited units refuse to provide or delay providing written information and electronic data related to audit matters, or the written information and electronic data provided by the audited units are untrue and incomplete, or the audited units refuse and hinder inspections, they shall be ordered by the auditing organs to correct, and may be criticized by circular or given a warning. Where the audited units refuse to correct, a fine of ten thousand to fifty thousand yuan shall be imposed on the audited units, and a fine of not less than 10,000 but not more than 50,000 RMB yuan shall be imposed on the principal person in charge and other directly responsible personnel. Where the auditing organs consider that punishment shall be imposed, they shall propose suggestions of punishment to the relevant departments and units. If a crime is constituted, the criminal liabilities therein shall be investigated into according to law.
Article 47 Where the information system of electronic data of the financial revenue and expenditure and related business information of the audited units is found by the auditing organs to fail to meet national standards or industry standards and is not converted into the format required by the auditing organs, the audited units shall be ordered by the auditing organs to make corrections or replacement within a time limit. Where the audited units refuse to correct or replace within the prescribed period, the auditing organs shall issue the notice of criticism in circular and advise it to be dealt with by relevant competent authorities.
Article 48 Where the investigated units and individuals do not cooperate with the investigation conducted by the auditing organs, the auditing organs shall order the investigated units and individuals to rectify. Wherein the investigated units refuse to rectify, the auditing organs shall issue the notice of criticism in circular and transfer them to the relevant departments for handling. Where the auditing organs consider that punishment shall be imposed, they shall propose suggestions of punishment to the relevant departments and units. If a crime is constituted, the criminal liabilities therein shall be investigated into according to law.
Article 49 Where the audited units do not carry out the decision on the audit, the auditing organs shall order them to make correction within a time limit. Where the audited units do not rectify beyond the time limit, the auditing organs shall take the following measures:
(1) Notifying relevant competent authorities of subtracting an equal amount of funding which shall be paid according to law;
(2) Applying to the People's Court for compulsory enforcement; or
(3) Recommending relevant departments and units punish the principal person directly in charge and other directly responsible personnel;
Article 50 Where one of the following situations occurs while the auditing organs implement the audit processing and administrative penalties, they shall be ordered to make correction by the people's government at the same level or the auditing organs at higher levels, and the principal person directly in charge and other directly responsible personnel shall be punished:
(1) The implementation of the audit processing and administrative punishment lack support from laws, statutes and regulations stipulated by the State;
(2) The implementation of the audit processing and administrative punishment violates the laws, regulations and procedures stipulated by the State;
(3) The implementation of administrative punishments violates the provisions of laws, regulations or the State in terms of the types and scope of penalties;
(4) Failure to transfer the audited units, which shall be transferred to the relevant competent authority and units for handling; or
(5) Other acts in violation of the laws, regulations or the relevant provisions of the State.
Article 51 Where the auditing officers abuse power, practice favoritism or dereliction of duty, or divulges state secrets and commercial secrets, punishment shall be imposed. If a crime is constituted, the criminal liabilities therein shall be investigated into according to law.
Chapter VI Supplementary Provisions
Article 52 The Regulations shall enter into effect as of May 1, 2011.