China revises law to stengthen audits of electronic accounts

Chinese auditors are entitled to request organizations to provide electronic accounts and to ensure the integrity and authenticity of the e-accounting materials, according to a law draft.

The draft amendment to the Audit Law was tabled to the 20th session of the Standing Committee of the 10th National People's Congress, China's top legislature, for the second review on Saturday.

He Yongjian, an official with the Commission of Legislative Affairs of the NPC Standing Committee, said paper-based accounting books were out-of-date and should be replaced by e-accounting documents, given the rapid development of information technology.

In a bid to effectively supervise audited organizations and prevent the concealing of important financial information, the Audit Law has been revised so auditors can ask for computer-processed information, such as income and expenditure accounts, said He.

The provision, saying that the audited organizations must ensure the authenticity and integrity of the e-accounts they offer, was also added into the draft amendment to the Audit Law.

Source: Xinhua