Adopted at the Ninth Meeting of the Standing Committee of the Eighth National People's Congress on August 31, 1994, and amended in accordance with the Decision on Amending the Audit Law of the People's Republic of China at the 20th meeting of the Standing Committee of the 10th National People's Congress of the People'e Republic of China on February 28, 2006

Chapter I General Provisions

Article 1 In order to strengthen the audit supervision of the State, maintain the fiscal and economic order of the State, enhance the efficiency in using fiscal capital, promote the construction of a clean government and ensure the sound development of national economy and the society, this Law is formulated in the light of the Constitution.

Article 2 The State shall carry out an audit supervision system. Auditing organs shall be set up by the State Council and the local people's governments at or above the county level.

The government revenues and expenditures of all the departments of the State Council, of the local people's governments at all levels and their departments, the financial revenues and expenditures of State-owned financial institutions, enterprises and public institutions, as well as other government revenues and expenditures and financial revenues and expenditures that should be audited in the light of this Law shall be taken the audit supervision in the light of the provisions prescribed in this Law.

Auditing organs shall implement audit supervision over the authenticity, legality and effectiveness of the government revenues and expenditures or financial revenues and expenditures specified in the preceding Paragraph.

Article 3 Auditing organs shall implement audit supervision in the light of the functions and procedures prescribed in the law.

An auditing organ shall make audit evaluation in accordance with the laws and regulations on government revenues and expenditures and financial revenues and expenditures as well as other relative provisions of the State, and shall make an audit decision under its statutory authorities.

Article 4 The State Council and the local people's government at or above the county level shall annually put forward to the standing committee of the people's congress at the same level an audit work report of the auditing organ on budget implementation and other government revenues and expenditures. An audit work report shall put stress on the audit of budget implementation. When necessary, the standing committee of the people's congress may make a resolution on the audit work report.

The State Council and the local people's government at or above the county level shall hand in a report to the standing committee of the people's congress at the same level about the correction of the problems found out in the audit work report and the handling results.