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	AUDITING PROCEDURES FOR CHINESE-FOREIGN EQUITY AND CONTRACTUAL JOINT VENTURES

	(promulgated by National Audit office of the People's Republic of China on January 12, 1993)


SUBJECT : AUDIT; CHINESE-FOREIGN EQUITY AND CONTRACTUAL JOINT VENTURES
ISSUING DEPARTMENT : NATIONAL AUDIT OFFICE OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 01/12/1993
IMPLEMENT DATE : 01/12/1993
LENGTH : 585 words
TEXT :

Article 1. These Procedures are formulated according to the "Auditing Regulations of the People's Republic of China" to safeguard the value and accretion of State assets, enforce the State's financial and economic laws and regulations, strengthen audit supervision over Chinese-foreign joint equity and contractual ventures and promote their sound development.

Article 2. The Chinese-foreign joint equity and contractual ventures mentioned in these Procedures are businesses established according to PRC's "Chinese-Foreign Joint Equity Ventures Law," "Chinese-Foreign Joint Contractual Ventures Law," and other relevant laws and regulations.

Any joint equity ventures, joint contractual ventures and their branches that have State-owned assets shall be subject to examination by auditing offices.

Article 3. According to PRC's laws and regulations, the auditing offices shall exercise independent audit supervision over such joint equity and contractual ventures without interference from any other administrative offices, mass organizations, or individuals.

The auditing offices carry out auditing according to law to safeguard the legal rights and interests of Chinese and foreign investors.

Article 4. The auditing offices shall exercise audit supervision over the maintenance and accretion of the property value, assets and liabilities, gains and losses, and other related economic activities of joint equity ventures where State assets have a holding status.

When they deem it necessary, the auditing offices can exercise audit supervision over joint equity ventures with equity participation of State assets and joint contractual ventures having State assets.

Article 5. In the course of auditing the accounts of joint equity and contractual ventures, if the auditing offices discover that the auditor's report and acceptance certificate provided by the auditing service or accounting firm are false and unlawful, they shall notify the department concerned for correction or dealing with the matter.

Article 6. Before they start auditing, the auditing offices should notify the related joint equity ventures or joint contractual ventures, which should accept the auditing and provide the necessary work conditions.

In the course of auditing, the auditing offices have the right to examine the vouchers, account books, data, and other relevant documents of the joint ventures, and to make investigations in related departments or among related personnel for relevant material and documentary evidence. The related departments or personnel should provide the relevant material and documentary evidence. The documentary evidence should be under the hand and seal of the person who provides it.

The auditing officers shall not use the relevant material and documentary evidence they have obtained for purposes that are unrelevant with the auditing.

Article 7. After auditing, the auditing officers shall write a report, and after soliciting the opinions of the joint ventures to be audited, submit the report to the auditing office. After examining and checking the report, the auditing office shall reach an audit conclusion and decision and notify the joint ventures.

Article 8. Should violation of financial and economic regulations by joint ventures be discovered, the auditing offices shall notify, besides the related joint ventures, related department for handling the matter according to law. If the related department puts off the matter without reason or deals with it improperly, the auditing office, after ascertaining the reason, has the right to report to the People's government at the same level.

Article 9. Audit supervision over joint euqity and contractual ventures established in China by Hongkong, Macao or Taiwan companies, businesses, other economic organizations, or individuals shall be exercised with reference to these Procedures.

Article 10. The Auditing Administration shall be responsible for interpreting these Procedures.

Article 11. These Procedures shall come into force on January 12, 1993.