On May 6, 2021, the Audit Law of the People's Republic of China (Draft for Amendments) has been adopted at the Executive Meeting of the State Council and will be submitted to the Executive Meeting of the National People's Congress for deliberation.
With the basic system of audit unchanged, the Draft enlarges the scope of audit within the Constitution and legal framework, and adds provisions on auditing supervision of major public projects, state-owned resources, state-owned assets, public funds, and local banks other than government-invested construction projects. The draft for amendments calls for strengthening the methods of audit supervision to enhance its independence and credibility. Audited entities are required to rectify the problems found in the audit within the specified time limit. Audit authorities shall follow up and inspect the rectification. Whoever refuses the rectification or commits a fraud in rectification should be held liable in accordance with laws.