ABSTRACT
The statutory requirements on auditing, the system of state audit supervision, the structure of state audit organs, the responsibilities and rights of auditors, and the standardized procedures of governmental audits are delineated in this chapter. Auditing in China is under rigid governmental control irrespective of governmental audits or public accounting practices. The Chinese system of state audit supervision comprises three elements: governmental auditing, institutional internal auditing and non-governmental auditing. Auditing in China is subject to strict governmental regulation or administration. The Auditing Law states that the National Auditing Administration is the supreme authority in charge of audit supervision nationwide. Auditing legislation and regulations did not exist in China until the system of state audit supervision was rebuilt in the mid 1980s. The auditing standards or practical guidelines formulated by professional bodies are a part of the auditing regulations in China.
