Revision to improve audit reports

Inclusion of State-owned resources to increase depth, breadth of supervision

Audits of government bodies are required to include content involving State-owned resources and assets as well as major construction projects related to national and public interests, a newly amended law said.

Whether significant socioeconomic policies and measures are implemented should also be included in the reports in line with the revised Audit Law, which was adopted by the National People”s Congress Standing Committee, China’s top legislature, on Saturday. The revised law will take effect on Jan 1.

Huang Wei, an official from the NPC Standing Committee’s Legislative Affairs Commission, viewed the amendment as a key change that “is meant to expand the scope of audit supervision and promote full coverage of audits”.

In other words, “the revisions aim to eliminate blind areas in audits, hoping to improve the depth and breadth of audit supervision,” she added.

The law also specifies who is responsible for rectifying problems in audited departments and for supervising the departments, relevant authorities and audit institutions.

Audit results and whether the problems are corrected should be used as key references for evaluating, appointing, dismissing or rewarding officials as well as for formulating policies or improving work systems.

“In this way, problems discovered in audits can be rectified more efficiently, and the effectiveness of supervision will also be intensified,” Huang said.

Moreover, the revised law optimizes the way audits are carried out and further regulates the behavior of auditors and supervisors.

For example, it highlights the importance of protecting the legitimate rights and interests of audited persons or departments and makes it incumbent on auditors to offer them privacy protection.

It also requires auditors and audited departments to report risks and hidden dangers discovered in their socioeconomic activities to governments or relevant authorities in a timely manner, “which, I believe, will contribute a lot to ensuring the sound development of the national economy and society”, Huang added.

Furthermore, the law improves audit efficiency by streamlining work flow and stipulates that the necessary costs for audit affairs must be guaranteed and listed in the budget, according to Zang Tiewei, spokesman of the commission.

The Audit Law was first promulgated in 1994 and played a major role in safeguarding the country’s economic security and advancing the development of an ethical government. Before Saturday’s revision, it was last amended in 2006.