In accordance with the stipulations of the Audit Law of the People’s Republic of China, the Regulations for the Implementation of the Audit Law of the People's Republic of China and other relevant regulations, audit institutions are entitled to enjoy the following powers in the course of auditing supervision:

 

1  Power to require the provision of information—audit institutions shall have the power to require auditees to provide, as specified by the audit institutions, their budgets or plans for financial revenues and expenditures, statements about budget implementation, final accounts and financial statements, electronic data for government or financial revenues and expenditures stored and processed by computers and the necessary computer technology documents, information about their accounts in monetary institutions, audit reports produced by public audit firms and other information relating to their government or financial revenues and expenditures.   

 

2  Power to conduct audit review—audit institutions shall have the power to examine the auditees’ accounting documents, account books, financial statements, the computer system used for the management of electronic data for government and financial revenues and expenditures, and other information and assets relating to the said revenues and expenditures.

 

3  Power to investigate and obtain evidence—audit institutions shall have the power to carry out investigation among units or individuals concerned into issues relating to audit matters and obtain relevant testimonial materials. An audit institution shall, with approval of the leading person of the audit institution of the people’s government at or above the county level, have the power to inquire about the accounts of an auditee in monetary institutions. Where an audit institution has evidence to prove that an auditee deposits public funds in the name of an individual, it shall, with approval of the principal leading person of the audit institution of the people’s government at or above the county level, have the power to inquire about the savings of the auditee deposited in monetary institutions in the name of an individual.

 

4  Power to adopt mandatory measures—the audit institution shall have the power to stop the ongoing acts committed by an auditee in violation of the regulations of the State governing government and financial revenues and expenditures and notify the department of finance and the relevant department in charge to suspend allocation of the funds or to suspend the use of the funds already allocated; if an auditee transfers, conceals, falsifies or destroys its accounting documents, account books, financial statements or other information relating to government or financial revenues and expenditures, or transfers or conceals the assets in its possession that are obtained in violation of State regulations, an audit institution shall, with approval of the leading person of the audit institution of the people’s government at or above the county level, have the power to seal up the relevant materials and the assets obtained in violation of State regulations.

 

5  Power to request assistance—the audit institution may request the departments in charge of public security, supervision, finance, taxation, customs, pricing, administration of industry and commerce, etc. for assistance.

 

6  Power to refer to the competent authorities—if the audit institution considers that the persons directly in charge and the other persons directly responsible for the violation of the regulations of the State governing government and financial revenues and expenditures, should be given administrative sanctions or disciplinary sanctions, it shall have the power to refer to judicial organs or administrative inspection organs for further disposal; if such violation constitutes a crime, it shall have the power to refer to judicial organs for the investigation of criminal responsibility; if the audit institution considers that the regulations of the department in charge at a higher level governing government and financial revenues and expenditures implemented by an auditee contravene laws or administrative regulations, it shall suggest that the department in charge revise its regulations; audit institutions shall have the power to make recommendations to the legislative, executive or other competent authorities for amending relevant laws, regulations, policies, measures, or intensifying and improving macro adjustment and control.

 

7  Power to deal with and punish—audit institutions shall have the power to deal with or punish, in accordance with law, the acts of auditees in violation of State regulations governing government and financial revenues and expenditures.