21 Regulations of Shenzhen Special Economic Zone on Auditing Supervision[深圳经济特区审计监督条例（2001）]

Archived（May 28, 2018）

(Adopted at the Fifth Meeting of the Standing Committee of the Third Shenzhen Municipal People’s Congress on February 23, 2001.)

Chapter I General Provisions

Article 1 In order to strengthen auditing supervision, maintain financial and economic order, protect the use, security and benefits of public assets, and promote the building-up of an honest and clean government, these regulations are hereby formulated according to the Law of the People's Republic of China on Auditing, and other relevant laws and administrative regulations, combining specific conditions of Shenzhen Special Economic Zone.

Article 2 Auditing authorities of the municipality and all districts shall exercise the function of supervision over auditing according to law.

Auditing departments may set up governmental investment Auditing authorities and other special Auditing authorities and assign Auditing authorities to the relevant departments or town or subdistrict offices.

Article 3 Auditing authorities shall implement the supervision over auditing on the following matters:

(1) Financial income and expense of the people's governments at various levels and their departments and relevant units;

(2) Financial income and expense of government agencies, political and party organizations, and social organizations that have direct relations of budgetary allocation or fund allocation with financial departments of the people's governments at the same levels;

(3) Financial income and expense of state-owned financial organizations, enterprises, and institutions;

(4) Financial income and expense of collectivity enterprises whose assets concern the social public benefits;

(5) Financial income and expense of social commonweal and public assets;

(6) Financial income and expense that shall be subject to the auditing supervision as provided by the people's governments at the same levels; and

(7) Other financial and financing income and expense that shall be subject to the auditing supervision according to law.

Article 4 Auditing authorities shall exercise the auditing supervision power independently, and shall not be intervened by other administrative authorities, social authorities, and individuals.

The audited units, relevant units, and individuals must execute the audit decision made by the Auditing authorities.

Article 5 Auditing authorities of the municipality and all districts shall take charge of the auditing work within their respective administration areas, under the guidance of the mayor, district heads and leaders at the next higher auditing authorities.

Auditing authorities of the municipality and all districts shall answer for the people's governments at the same levels and the next higher auditing authorities and report the work to them. The auditing business mainly depends on the leading of the next higher auditing authorities.

Article 6 The outlay needed by auditing authorities of the municipality and all districts for exercising duties shall be listed in the budgets at the same levels separately, and shall be guaranteed by the people's governments at the same levels.

Article 7 Auditing authorities may engage personnel with professional knowledge related to the auditing proceedings to take part in the auditing work.

Article 8 Auditing authorities shall determine the auditing jurisdiction range according to the financial and financing affiliation of audited units or the relation of assets supervision and administration. If the auditing jurisdiction range cannot be determined according to the financial and financing affiliation of audited units or the relation of assets supervision and administration, the auditing shall be governed by auditing authorities in the places of registration of audited units or in the localities of main assets.

If there are disputes between auditing authorities on the auditing jurisdiction range, the range shall be determined by their common next higher auditing organization.

Chapter II Financing Auditing and Supervision

Article 9 Auditing authorities shall supervise the auditing of all departments at the same levels (including units directly under them) and the next lower people's government on the enforcement of budget and final accounts, and the use and administration of funds beyond the budget.

Article 10 Auditing authorities shall audit the information on the budgetary enforcement and other financial income and expense at the same levels upon the annual closing of every budget, and shall raise the auditing result reports to the people's governments at the same levels and the next higher levels.

Article 11 Auditing authorities shall make the auditing evaluation on the budgetary enforcement at the same levels, raise handling opinions and improving proposal, and supervise and urge financial and taxation departments and other relevant departments to make corrections for problems existing in the course of the budgetary enforcement.

Article 12 Auditing authorities shall bring forward working reports on auditing of financial income and expense of the last fiscal year, and correction on significant problems raised by the auditing reports of the last fiscal year to the standing committees of people's congresses at the same levels according to the arrangement of the standing committees of the people's congresses at the same levels, under the entrustment of the people's governments at the same levels.

Article 13 Auditing authorities shall strengthen the auditing on performance of all departments at the same levels.

The auditing on performance as referred herein shall mean the special audit acts as following: Auditing authorities examine the economic, efficiency, and effect degree reached by the use of financial funds in the course of exercising duties, make analysis and evaluation, and raise opinions on improvement based on the auditing on the truthfulness and validity of financial income and expense and corresponding economic activities of all departments of the people's governments.

Article 14 When carrying out the auditing on performance, Auditing authorities shall make quantitative and qualitative analysis and comparison by means of horizontal and vertical methods and make auditing judgment based on the efficiency, effect, potency, environment, and cost.

Article 15 Auditing authorities shall bring forward the performance auditing reports to the people's governments at the same levels and the next higher auditing authorities in the forth quarter of each year, and shall report the performance auditing work to the standing committees of people's congresses at the same levels under the entrustment of the people's governments at the same levels.

Article 16 The relevant departments of people's governments shall compile and determine the organizational setup and personnel arrangement according to the review opinions of the standing committees of people's congresses at the same levels on the performance auditing reports.

Chapter III Auditing Supervision over State-owned Financial Institute, Enterprise and Government-sponsored Organization

Article 17 Auditing authorities shall supervise the auditing on assets, liabilities, profits, and losses of the following state-owned financial organizations:

(1) State-owned commercial banks;

(2) State-owned non-banking financial organizations; and

(3) Banks and non-banking financial organizations whose state-owned assets occupy the holding or leading position.

When auditing the aforesaid financial organizations, auditing authorities shall evaluate the internal management and control system of financial organizations.

Article 18 Auditing authorities shall supervise the auditing on assets, liabilities, profits, and losses of the following enterprises:

(1) State-owned enterprises;

(2) Enterprises whose state-owned assets occupy the holding or leading position; and

(3) Collectivity enterprises whose assets concern the social public benefits.

Article 19 Auditing authorities shall supervise the auditing on enterprises and organizations whose state-owned assets occupy the holding or leading position and that were established out of the territory of this country.

Article 20 Auditing authorities shall supervise the auditing on the operation, profits, and losses of state-owned assets of financial organizations and enterprises whose state-owned assets do not occupy the holding or leading position.

Article 21 The main contents of the supervision of auditing authorities over the auditing of financial income and expense of state-owned financial organizations and enterprises shall be as follows:

(1) Assets, liabilities, owner's benefits, profits, and losses;

(2) Income, cost, profit and its distribution and use;

(3) Information on state-owned assets;

(4) External investment;

(5) Appreciation and inflation certified of assets;

(6) Formulating and enforcement of internal control system;

(7) Payment of taxes and fees according to law; and

(8) Other proceedings as stipulated by laws and regulations.

Article 22 The main contents of supervision of auditing authorities over the auditing on financial income and expense of institutions that have direct relations of budgetary payment, and allocation with the financial departments at the same levels are as follows:

(1) Use of funds;

(2) Information on institutional income, production and operation income;

(3) Information on income and expense of funds beyond the budget;

(4) The use and management of balance of income and expense of budgetary outlay and special funds; and

(5) Other proceedings as provided by laws and regulations.

Article 23 Annual operation reports of state-owned assets submitted by the state-owned assets operation authorities of the municipality and all districts to the state-owned assets administration authorities shall be audited by auditing authorities at the same levels.

Chapter IV Auditing Supervision over Investment Projects

Article 24 Auditing authorities shall supervise the auditing of the budgetary enforcement and final accounts of the infrastructure construction projects and technological reform projects (hereinafter referred to as the "investment projects") under the following assets investment or financing:

(1) Financial funds;

(2) Social commonweal assets;

(3) Capital and funds that are administered by the government agencies and by social organizations under the entrustment of the people's governments;

(4) State-owned assets administered and used by enterprises and institutions;

(5) Self-raising funds or bank loans by state-owned enterprises and institutions; and

(6) Other state-owned assets.

Article 25 The main contents of the auditing supervision of auditing authorities over the investment projects shall be as follows:

(1) Information on invitation to bid and bidding;

(2) Information on the resource, management, and use of funds;

(3) Information on the budgetary enforcement;

(4) Information on the completion final accounts and assets transfer;

(5) Information on investment benefits; and

(6) Other proceedings as provided by laws and regulations.

Article 26 Financial income and expense of units of construction, design, supervision, purchase, and so on directly related to investment projects shall be subject to the auditing supervision of auditing authorities.

Article 27 Auditing opinion statements provided and auditing decision made by auditing organization on the completion final accounts of investment projects shall be as the legal basis of the financial settlement and transfer of state-owned assets upon the completion of investment projects, and shall have binding force to building units, design units, and construction units.

Article 28 Auditing authorities may implement the whole process of auditing all key investment projects at the same levels if necessary.

Chapter V Auditing Supervision over Commonweal Assets

Article 29 Auditing authorities shall supervise the auditing on the financial income and expense of the following social security funds that are administered by government agencies or social organizations or other organizations under the entrustment of the people's government:

(1) Social insurance funds of endowment, unemployment, medical, employment injury, and so on;

(2) Social salvation funds such as disaster-relief funds, salvation funds, and poverty support funds; and

(3) Social welfare funds.

Auditing authorities shall establish the regular auditing system for social security funds.

The auditing results of auditing authorities on social security funds shall be notified to the competent or entrusting departments and announced regularly.

Article 30 Financial income and expense of environmental protection funds, social donation funds, and other social funds and capital for public benefit that are administered by government agencies or social organizations or other organizations under the entrustment of the people's government shall be subject to the auditing supervision of the auditing authorities.

When auditing the social funds and capital for public benefit, auditing authorities shall submit the comprehensive auditing reports to the people's governments at the same levels. The auditing results on social donation funds shall be announced to the public.

Article 31 Auditing authorities shall implement the auditing supervision over the financial income and expense of aids, loans, and donation projects from international organizations and foreign governments according to law.

When implementing the auditing supervision as listed in the preceding paragraph, auditing authorities shall abide by the generally accepted domestic and international accounting and auditing criteria, and shall audit the financial income and expense and benefits in the course of raising, use, administration, and repayment of domestic auxiliary funds.

Chapter VI Auditing Supervision over Economic Responsibility during Tenure

Article 32 Main principals of social organizations and institutions that have direct budgetary payment or allocation relations with financial departments at the same levels and government agencies (hereinafter referred to as the "main principals") shall be subject to economic responsibility auditing during the tenure of their office if they no longer hold the original positions due to dismissal, resignation, retirement, and so on.

The economic responsibility auditing during the tenure of the office of the main principals shall be implemented by Auditing authorities upon the application of departments that administer these main principals.

Article 33 Auditing authorities shall implement the economic responsibility auditing during the tenure of the main principals' office based on the truthfulness, validity, and benefit of financial and financing income and expense of departments or units of the main principals, so as to distinguish charging responsibilities and direct responsibilities borne by main principals in economic activities of their departments or units, and make objective evaluation and submit the auditing result reports.

Article 34 Auditing result reports provided by auditing authorities on the incumbency economic responsibility auditing shall be as the legal basis of examining, appointing, dismissing, awarding, or punishing main principals.

Article 35 The incumbency economic responsibility auditing on legal representatives of state-owned enterprises and government investment projects shall be handled according to the relevant laws and regulations.

Chapter VII Supervision over Internal and Social Auditing

Article 36 All departments of the people's governments and state-owned financial organizations and institutions shall establish and strengthen the internal auditing system.

Auditing authorities shall guide and supervise the operation of the internal auditing.

Article 37 The internal auditing authorities and internal auditing personnel shall exercise the internal auditing authorities independently according to law and shall be protected by laws.

Article 38 Auditing authorities shall supervise the auditing quality of social auditing authorities according to the relevant laws and administrative regulations.

Auditing authorities shall supervise and examine whether certified documents provided by social auditing authorities for the assets evaluation, capital assessment, certificate assessment, budget and final accounts of projects, tax agency, accounting, auditing, and so on are true and valid.

Article 39 When, in the course of auditing, finding that certified documents provided by the social Auditing authorities are not true or illegal, auditing authorities shall investigate and verify them according to the relevant laws and regulations, and handle them appropriately.

Chapter VIII Power of Auditing Authority

Article 40 When auditing authorities implement the auditing supervision, the audited units shall provide the following materials, and information according to the time limit and requirements as provided by the auditing authorities:

(1) Information on accounts set up by audited units in banks and non-banking financial organizations;

(2) The financial statements of the financial or financing income and expense;

(3) Auditing reports issued by the internal auditing authorities and certified documents provided by the social Auditing authorities;

(4) Computer application system materials related to the financial or financing income and expense;

(5) Laws and regulations related to the auditing proceedings and the relevant materials; and

(6) Other materials related to the financial or financing income and expense.

Article 41 When implementing the auditing, auditing authorities shall have the right to examine the accounting vouchers, accounting books, accounting statements, and other materials and assets related to the financial or financing income and expense of the audited units, and the audited units shall not refuse.

Article 42 When implementing the auditing, auditing authorities shall have the right to investigate the relevant issues related to the auditing proceedings. The relevant units and individuals shall support and assist auditing authorities, reflect information according to facts, and provide the relevant certified documents.

When inquiring about deposits of the audited units in financial organizations, auditing authorities shall hold the inquiry notice signed by main principals of auditing authorities. The relevant financial organizations shall assist the enforcement.

Article 43 Auditing authorities shall have the right to adopt measures to obtain the evidence if they consider that the audited units possibly transfer, conceal, alter, or destroy accounting vouchers, accounting books, accounting statements and other materials related to other financial or financing income and expense. If necessary, they shall have the right to temporarily seal up the accounting books and materials related to the financial or financing income and expense in violation of the relevant provisions of this country of audited units upon approval of principals of auditing authorities.

If discovering that audited units transfer or conceal assets obtained in violation of the relevant provisions of this country or are processing acts of financial or financing income and expense in violation of the relevant provisions of this country, Auditing authorities shall have the right to deter them.

Article 44 Auditing units shall have the right to raise suggestions on issues related to the financial or financing income and expense. The relevant departments and units shall handle them in time according to law, and shall notify the handling results to the auditing authorities in writing.

If auditing authorities find that audited units or the relevant responsible personnel are suspected of being involved in crimes in the course of auditing, they shall transfer them to the judicial authorities in time. Judicial authorities shall handle them in time according to law, and shall notify the handling results to the auditing authorities in writing.

Article 45 Auditing authorities shall have the right to implement special auditing investigation on specific proceedings related to the finance or financing income and expense, and the audited units and departments shall not refuse.

Article 46 Auditing authorities shall regularly examine the enforcement and handling of the auditing opinions and decision. The examination information shall be reported to the people's governments at the same levels and the next higher auditing authorities, and shall be subject to the supervision of the standing committees of people's congresses at the same levels.

Article 47 After the ending of auditing, auditing authorities shall report the auditing results to the people's governments or announce them to the public.

Chapter IX Legal Responsibilities

Article 48 In the case that the people's governments at the same levels and the lower levels with financial income and expense acts in violation of budget or the relevant provisions of this country, auditing authorities shall handle the illegally obtained assets according to law based on different circumstances:

(1) Ordering them to turn in or pay financial income that shall be turned in or paid within a specified time limit;

(2) Ordering them to return the infringed state-owned assets within a specified time limit;

(3) Ordering them to return the illegal gains within a specified time limit;

(4) Ordering them to offset or adjust the relevant accounts; or

(5) Adopting other correction measures.

Article 49 If the audited units have committed acts of financial income and expense in violation of the relevant provisions of this country, auditing authorities shall dispose of their illegally obtained assets and may impose warnings, circular criticism, confiscation of illegal gains, or fines to audited units according to Article 53 of the Implementing Regulations of the Law of the People's Republic of China on Auditing. They may raise proposal on imposing administrative sanctions or disciplinary sanctions on the relevant responsible persons.

Article 50 Audited units that refuse to provide materials related to the auditing proceedings or delay the providing of such materials, or refuse or hinder the examination shall be prosecuted for liabilities by auditing authorities according to Article 49 of the Implementing Regulations of the Law of the People's Republic of China on Auditing.

Article 51 In the case that audited units that transfer, conceal, alter, or destroy accounting vouchers, accounting books, accounting statements, and other materials related to the financial or financing income and expense, or transfer or conceal illegally obtained assets shall be handled by auditing authorities according to Article 50 and Article 51 of the Implementing Regulations of the Law of the People's Republic of China on Auditing.

Article 52 Any unit or individual who retaliates or frames auditing personnel shall be handled by the relevant department; if his acts constitute a crime, he shall be prosecuted for criminal liability according to law.

Article 53 Auditing personnel who abuse their authorities, practice favoritism, neglect their duties, or accept bribes shall be prosecuted for their criminal liabilities if they commit a crime or crimes, or shall be subject to administrative sanctions according to law if they do not commit a crime.

Money and articles obtained by accounting personnel illegally shall be captured, confiscated, or returned upon order according to law.

Article 54 If audited units do not comply with specific administrative acts of the auditing authorities, they may apply for auditing reviews to the next higher Auditing authorities or the people's governments at the same levels within 60 days upon the date of knowing the specific administrative acts. If they do not comply with the auditing review decision, they may institute proceedings to the people's courts within 15 days upon the receipt of the auditing review decision.

Chapter X Supplementary Provisions

Article 55 Duties, power, procedures, legal liability, and so on that are not stipulated by these regulations shall be exercised according to the Law of the People's Republic of China on Auditing and other relevant laws and regulations.

Article 56 The people's government of the municipality may formulate the implementing rules according to these regulations.

Article 57 These regulations shall take effect as of June 1, 2001.