China Revises Audit Law Regulations to Expand Oversight and Curb Interference

Chinese Premier Li Qiang has signed State Council Decree No. 847, promulgating the newly revised Implementing Regulations of the Audit Law, scheduled to take effect on December 1, 2026. Comprising 64 articles across seven chapters, the updated rules formally enshrine the leadership of the Chinese Communist Party over government auditing, broaden scrutiny over state-owned resources and major public works, establish a mandatory registry to report political interference, and clarify legal liabilities for entities that fail to rectify audit findings.

The revision provides a strengthened administrative foundation for China's national auditing system. By introducing clear liabilities for inadequate rectification, institutionalizing anti-interference reporting, and integrating state asset management into regular oversight, the regulations increase the coercive force and authority of auditors, aiming to curb fiscal waste and corruption in the management of public funds.

Chinese Premier Li Qiang has signed State Council Decree No. 847 to promulgate the revised Implementing Regulations of the Audit Law, according to official notices published by Xinhua and government portals. The revised administrative regulations, approved during a State Council executive meeting on August 31, 2026, and signed on September 19, 2026, are scheduled to enter into force on December 1, 2026. The revised framework consists of 64 articles organized into seven chapters, marking the second major overhaul of the decree since its initial release in 1997 and a previous revision in 2010. The amendments systematically refine the operational scope of national audit institutions while elevating political and procedural requirements across the audit lifecycle. Under the new provisions, auditing work is explicitly required to uphold the leadership of the Chinese Communist Party and align closely with central leadership policies and strategic deployments. The National Audit Office continues to operate under the direction of the Premier, while local audit offices remain subject to dual leadership under regional administrative chiefs and superior audit authorities. A key focus of the revision is broadening the purview of audit supervision. The regulations refine the scope of fiscal revenue and expenditure reviews, stipulating that audit findings regarding draft final fiscal accounts as well as the management and utilization of state-owned assets and resources must be incorporated into formal audit result reports. In addition, the rules define the scope of major public engineering projects affecting national and public interests, while formally bringing state-owned resource management under special audit investigations. To safeguard institutional independence, the regulations mandate a formal registration and reporting mechanism for any attempts to inquire into, tamper with, or interfere in ongoing audit matters. The updated procedural rules also standardize measures for auditing agencies to examine bank deposits associated with units or individuals under investigation and reinforce obligations for relevant government organs to assist in audits. Finally, the decree tightens accountability for resolving audit-uncovered issues. Audited institutions are explicitly designated as holding the primary operational responsibility for rectifying non-compliance, with expanded legal liabilities for units that fail to address identified infractions. Audit offices are tasked with categorizing findings, issuing tailored rectification directives, and conducting follow-up verifications to ensure corrective actions are fully realized.