Six focuses set for auditing this year

The auditing departments will focus their work on six aspects in 2005 to continue investigations into major irregularities and economic cases.

Audit significant investment projects

The purpose of initially selecting high-grade roads with relatively large investment as the objects of the audit is to uncover the irregularities in the construction, examine irregular land requisition, project fund in arrears and the withdrawn compensation to farmers for their land.

Audit the fulfillment of government budget

Continue the shift from the auditing both income and expenditure to auditing mainly on expenditure. The National Audit Office requires the auditing departments at all levels attach high importance to auditing governments. In particular, special audit should be conducted in the departments that hold large amount of funds, have the right to allocate the budgetary funds and have more subordinates.

Audit financial institutions

Auditing departments will pay special attention to the possible risks in the financial operation to uncover the problems and loopholes in the financial institutions. Apart from auditing the financial income and expense of China Banking Regulatory Commission (CBRC), the National Audit Office will organize auditing the asset-liability losses and gains of the Agricultural Bank of China.

Audit special funds

The national Audit Office plans to conduct audit or auditing investigation in funds for the environment protection of the Qinghai-Tibet railway, for the sanitation in rural areas and for urban unemployment insurance as well as urban housing provident fund and fund for foreign aid projects. Various localities will also concentrate on the protruding problems affecting the interests of the masses and conduct targeted audit and investigation.

Audit state-owned enterprises

11 central backbone enterprises are supposed to be subject to audit. With the entrust of the Organization Department of the Communist Party of China (CPC) Central Committee, the National Audit Office will audit the economic liability of the leaders of the 11 backbone enterprises administered by the CPC central committee and the financial income and expense of their enterprises.

Audit economic liability

From 2005, the Party and government leaders will be included in the audit on their economic liability. At the same time, experiment audit will be continued on provincial and ministerial leaders.

Background: China's auditing in 2004

As learned from the national audit work conference, China made marked achievement in its audit last year. From January to November 2004, 95, 000 units were audited. RMB20.8 billion yuan could be added to the fiscal revenue and RMB880 million yuan cut from the expenditure after the irregularities handled. 1,165 clues concerning irregularities were reported to procuratorate and judicial departments.

Auditor-General Li Jinhua said, compared to previous years, China did a much better job in dealing with the problems disclosed in auditing the fulfillment of the central budget and other financial incomes and expenses. Till the end of last October, RMB20.8 billion yuan of the problematic capital has been turned over and RMB23.9 billion idle capital appropriated. The rate of turnover and appropriation is 73 percent and 98 percent respectively. The appropriation rate is 21 percentage points higher than the previous year. 222 cases, 139 more than in the previous year, were delivered to procuratorate and supervision departments and 754 persons (times), 209 more than the previous year, received punishment for violating the Party or government disciplines, or delivered to the judicial departments.

In 2004, the National Audit Office further tightened auditing the central departments, especially those with the right to distribute budgetary funds. Irregularities such as false report of fiscal funds, embezzlement of special funds and untrue final accounts were uncovered.

By People's Daily Online