( Amended and Promulgated
by the President of the Republic of China on November
11, 1998 )
Chapter I
Article 1 | Article 2
| Article 3 | Article
4 | Article 5 | Article
6 | Article 7 | Article
8 |
Article 9 | Article 10
| Article 11 | Article
12 | Article 13 | Article
14 | Article 15 |
Article 16 | Article
17 | Article 18 | Article
19 | Article 20 | Article
21 | Article 22 |
Article 23 | Article
24 | Article 25 | Article
26 | Article 27 | Article
28 | Article 29 |
Article 30 | Article
31 | Article 32 | Article
33 | Article 34 |
Chapter II
Article 35 | Article
36 | Article 37 | Article
38 | Article 39 | Article
40 | Article 41 |
Article 42 | Article
43 | Article 44 | Article
45 | Article 46 |
Chapter III
Article 47 | Article
48 | Article 49 | Article
50 | Article 51 | Article
52 | Article 53 |
Article 47 | Article
48 | Article 49 | Article
50 | Article 51 | Article
52 | Article 53 |
Article 54 |
Chapter IV
Article 55 | Article
56 | Article 57 | Article
58 | Article 59 | Article
60 | Article 61 |
Chapter V
Article 62 | Article
63 | Article 64 | Article
65 | Article 66 | Article
67 | Article 68 |
Article 69 | Article
70 |
Chapter VI
Article 71 | Article
72 | Article 73 | Article
74 | Article 75 | Article
76 | Article 77 |
Article 78 |
Chapter VII
Article 79 | Article
80 | Article 81 | Article
82 |
Chapter I General Rules
Article 1.
The audit of the financial affairs of the governments
shall be conducted in accordance with the provisions
of this Law.
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Article 2
Duties and functions of audit are enumerated as follows::
- To supervise the implementation of budget;
- To certify receipt and payment orders;
- To examine financial activities; to certify annual
financial reports;
- To inspect irregularities and dereliction of duties
concerning of the financial activities;
- To evaluate the performance of financial activities;
- To judge financial responsibilities;
- To perform other audit works stipulated by other
laws.
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Article 3
Audit duties and functions shall be conducted by the
audit agencies.
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Article 4
Central government agencies and their subordinate institutes'
financial activities shall be audited by National Audit
Office. For those agencies based in provincial or local
areas, may be audited by the designated audit bureaus
(offices) nearby.
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Article 5
Provincial (municipal) governments and their subordinate
agencies shall be audited by in charged provincial (municipal)
audit bureaus. Audit offices may be set up in counties
and cities to audit the financial affairs of these local
governments and their subordinate agencies.
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Article 6
Special public service agencies, government enterprises
and institutions shall be audited by the audit bureaus
(offices) having jurisdiction.
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Article 7
Whenever there is no related audit bureau (office)
on place, government agencies' financial activities
should be audited by the audit agency governing them,
or by an audit bureau (office) in the vicinity so delegated.
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Article 8
In order to facilitate auditing work, an auditing agency
may delegate another auditing agency to carry out certain
audit and the latter shall inform the former concerning
the decisions and opinions about the audit.
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Article 9
When an audit involves special technique, or requires
surveillance or testing, other organizations or specialists
may be consulted or requested by audit agencies to perform
certain assignments. However, the final decision rests
with the auditing agency in question.
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Article 10
Auditors shall carry out their audit functions in
accordance with the law without interference.
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Article 11
The important audit cases in the National Audit Office
should be referred to the Council of Auditors for decision;
similar cases in an audit bureau (office) shall be referred
to the Auditors’ Meeting for decision. The bylaws of
the Meetings shall be prescribed by National Audit Office.
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Article 12
The auditing agencies shall regularly or irregularly
dispatch personnel to various agencies to conduct on-the-spot
audit; whereas this type of audit has not been conducted,
the agencies concerned shall be asked to submit their
financial reports for audit. In the latter case, personnel
may be dispatched to carry out spot audit.
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Article 13
Audit agencies may inspect, at any time, the receipts,
disbursements and properties of the various government
agencies.
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Article 14
In performing the auditing function, the auditors may
inspect the books, vouchers, other documents, cash balance,
and properties of various agencies under audit. The
officers in charge of those agencies under audit shall
not conceal, or refuse to produce what is to be audited.
Upon questioning or requesting for information by the
auditor, the officers in charge shall give detailed
and accurate answers or furnish the needed information.
In case the responsible officers do not comply with
the foregoing provision, the auditors shall report the
fact to the competent auditing agencies so that they
request the directors of the said government agencies
to effect punishment thereupon, or to appeal to the
Control Yuan for action.
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Article 15
In performing the auditing function, the auditing
agencies may dispatch officers armed with Inspection
Certificates issued by the National Audit Office to
make inquiries at any public or private organizations
and individuals, or to inspect the books, vouchers,
and other documents of these organizations. The various
responsible persons concerned shall not conceal the
above or refuse cooperation. Upon questioning, they
shall furnish detailed and truthful answers. When it
is deemed necessary in connection with the performance
of the auditing function, judicial or military police
authorities may be asked to render appropriate assistance.
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Article 16
The auditing agency or auditor, in performing
the auditing function as mentioned in the above two
articles, may take notes about the inquiries and ask
the persons questioned to sign or stamp their personal
chops on the notes. When it is deemed necessary, the
auditing agency or auditor may seal off the various
relevant books, vouchers, and other documents for the
time being, and may take into custody the whole or a
part thereof.
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Article 17
When an auditor discovers evidence of irregularities
or dereliction of duty committed by individuals of an
organization, he shall have the case reported to the
auditing agency concerned. The latter shall notify the
organization in question to take necessary action, and
shall report to the Control Yuan to take action according
to the law. Cases involving criminal offenses shall
be referred to the court for action and shall also be
reported to the Control Yuan.
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Article 18
When auditor considers that urgent action should be
taken with respect to his discovery of irregularities
or mal-practices, as mentioned in above articles, he
shall promptly report the case to the auditing agency
concerned. The latter shall notify the officer in charge
of the agency in question to take immediate action.
The officer in charge of the agency in question shall
be held jointly responsible if he does not take immediate
action upon notice of the above.
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Article 19
Where the person suspected of committing an act referred
to in the second paragraph of Article 14, Article 17,
18 and 78 is the officer in charge of an agency, the
auditing agency shall notify his higher agency to take
necessary action.
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Article 20
Where the agency has deferred or taken improper action
toward the case which was referred to it for action
by an auditing agency, the auditing agency shall inquire
the agency in question and the latter shall respond
with responsible answer. Where the auditing agency does
not get responsible answer from the agency in question,
or considers the answer unsatisfactory, the National
Audit Office may refer the case to the Control Yuan
for action.
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Article 21
An auditing agency or auditor shall, in pre-audit,
refuse to sign any disbursements that violate budgetary
or other law or statute; and shall, in post-audit, disallow
and require a refund of such disbursements.
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Article 22
Audit agency shall issue the notice of approval of
audit, or the notice of audit, to the respective agencies
audited concerning the result of the audit.
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Article 23
Upon receipt of the notice of the result of audit,
the agency concerned shall submit a statement of explanation,
within thirty days, for the decision of the auditing
agency, except for cases concerning the audit of annual
reports where the Law of Final Report shall apply. The
auditing agency may make the decision without consulting
the agency in question after the above-mentioned time
limit.
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Article 24
Whenever the agency disagrees with audit agency's
decision up by the preceded article, the agency under
audit may ask for reconsideration within thirty days
after receipt of the decision notice, except for cases
concerning the audit of annual reports which shall be
governed by the Law of Final Report. The auditing agency
will not reconsider the case after the expiration of
the prescribed period. Request for reconsideration may
be filed once only.
Article 25
Where an agency, due to special reasons, is not able
to ask for reconsideration on the audit agency's decisions
or to reply to the auditing notice within a prescribed
time, the agency may submit a request for extension
within above time limit, by offering a statement of
the reasons. The auditing agency may grant an extension
but once only.
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Article 26
In the event of subsequent discovery of error, omission
or repetition relative to a closed case, the auditing
agency may re-examine this case provided that it is
within two years from the date of decision. In the event
of subsequent discovery of false evidence, re-examination
may be conducted provided that it is within ten years
from the date of decision.
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Article 27
In the event of subsequent discovery of error, omission
or repetition relative to a closed case, the auditing
agency may re-examine this case provided that it is
within two years from the date of decision. In the event
of subsequent discovery of false evidence, re-examination
may be conducted provided that it is within ten years
from the date of decision.
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Article 28
Where an auditing agency changes its decision as a
result of re-examination, the previously issued notice
of approval and verification becomes null and void,
and shall be cancelled within a prescribed period.
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Article 29
Where an auditing agency couldn't settle a case due
to missing of the personnel in charge, the audit agency
may ask its supervise agency to trace, publish the gist
of the case and inform the personnel agency to suspend
the employment of the person in question until case
resolved.
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Article 30
An auditing agency, while dispatching a staff member
to participate in the financial council of a government
agency, shall not be bound by the resolutions thereof,
in case the participant designated by the auditing agency
has expressed disagreement to the resolutions in question.
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Article 31
Government agencies' accounting systems and regulations
concerning internal audit shall be promulgated and enforced
only after due consultation with the respective competent
auditing agencies; the same procedure governs changes
in the above-mentioned matters. Where there are regulations
governing the operational inspection or performance
evaluation, the auditing agency shall be informed of
the same.
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Article 32
Where in examining and certifying disbursements, the
officers in charge, or their proxies and their chief
accountants have any doubts or disputes about the relevant
auditing law and regulations, they may request in writing
the competent auditing agencies for advice, and the
latter shall oblige with due interpretation. The above-mentioned
interpretation shall be publicly announced.
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Article 33
Where the government issues bonds or borrows, the
competent agency shall submit the statutory provisions
for bond issuance or the loan agreement to the competent
auditing agency for record. The auditing agency shall
be kept informed of any subsequent modifications therein.
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Article 34
Follow the close of a fiscal year, the government
shall prepare an annual report and submit it to the
auditing agency for audit. Upon the submission of the
Central Government annual report by the Executive Yuan,
the National Audit Office shall, within three months,
complete its audit and have its audit report submitted
to the Legislative Yuan. Where there are questions raised
or information requested in connection with the deliberation
of the above-mentioned audit report by the Legislative
Yuan and the Control Yuan or by their various committees,
the Auditor General shall make reply or furnish pertinent
information.
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Chapter II Audit of Public Affairs
Article 35
The approved appropriation budget of government agencies,
together with the administrative plans and on programs,
shall be submitted to the auditing agencies. This rule
also applies to any subsequent modifications thereof.
If an allotment budget is found to be not in conformity
with the legal budget or the relevant laws or regulations,
it shall be corrected accordingly.
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Article 36
Accounting reports of various government agencies
and funds shall be prepared in accordance with the Law
of Accounting, and the respective accounting systems,
and, together with original documents and vouchers,
shall be submitted to the auditing agency for audit.
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Article 37
The auditing agency shall have personnel stationed
at the Treasury and various disbursing agencies to carry
out the auditing function; where, for some reason, no
personnel are stationed, auditing officers may be dispatched
from time to time to conduct spot-audit.
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Article 38
The Treasury shall not effect a payment or make a
remittance unless the document and voucher have been
reviewed and authorized by auditing agency or the resident
auditing personnel. Where there is neither auditing
agency nor auditing personnel around will not be the
case.
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Article 39
The auditing agency or the resident auditing personnel
shall refuse to authorized the document and voucher,
which is against the Treasury’s appropriation, or the
Treasury check, where it is found that the payment in
question is not made in accordance with the budget or
with the relevant laws or regulations. Approval or refusal
of a payment as stated in the above paragraph shall
be done not later than three days after receipt of the
request for audit except in ca ses where an investigation
is deemed necessary or deferment is inevitable.
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Article 40
Where there is a calculation error or irregularity
uncovered by the personnel dispatched by an auditing
agency to a tax collecting agency to conduct the audit
of tax assessment and collection, the case may be referred
to the competent authority for appropriate action.
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Article 41
In assigning personnel to various government agencies
to conduct on-the-spot audit, the auditing agency may
decide the degree and scope of the audit, in the light
of the internal audit performance of the agencies concerned.
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Article 42
In conducting on-site audit of various government
agencies, the auditing officer may notify these agencies
to submit the relevant reports to him for audit. The
auditing officer may, at any time he choose, check their
records and verify with the related vouchers, case and
properties.
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Article 43
The auditing officer shall report the result of his
on-the-spot audit of the various government agencies
to the auditing agency for deliberation and decision.
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Article 44
In submitting the accounting reports for audit, the
government agencies may withhold relevant documents
and vouchers provided that the omission is warranted
by special situation and with prior consent of the auditing
agency.
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Article 45
After closing the fiscal year, government agencies
shall prepare annual reports, and have these reports
submitted to the auditing agency for audit. The auditing
agency shall, upon completion of the audit, issue a
certificate of approval to the agencies concerned.
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Article 46
Auditing agency shall issue a written notice to those
have not submitted their annual reports within the prescribed
time reminding them or prompt submission. In case no
annual report is submitted after the written notice
is served, Article 17 may be invoked to deal with the
case.
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Chapter III Audit of Public Enterprises
Article 47
Following public enterprises and institutions shall
be audited by an auditing agency:
- Sole government ownership;
- Joint government and private ownership with the
government holding over 50 percent of the stock;
- Reinvestment by the enterprises described in 1 ,
and 2 which accounts for over 50 percent of the total
capital of the reinvested enterprise.
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Article 48
The general auditing principle applicable to business
enterprises shall be applied in the audit of the financial
affairs of government enterprises and institutions,
in addition to the application of the provisions of
this Law and other relevant laws and regulations.
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Article 49
The business or operational plan, projects to be implemented
by stages, cash flow estimate, and monthly accounting
report of various government enterprises and institutions
shall be submitted to the auditing agency.
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Article 50
Government enterprises and institutions shall prepare
the semi-annual and the annual reports and have these
reports submitted to the auditing agency for audit.
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Article 51
Earnings or loss of a government enterprise or institution
shall be certified by the audit agency in charge.
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Article 52
The appropriation of earnings or loss of a government
enterprise or institution shall be processed in accordance
with the legal procedures. The auditing agency shall
effect necessary corrections for non-compliance with
the law on this matter.
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Article 53
Where a government enterprise or institution has undertaken
reappraisal of its fixed assets in accordance with law
or regulation, the records concerning the reappraisal
shall be submitted to the in charge auditing agency
for verification.
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Article 54
Articles 41 to 43, Article 45 and Article 46 shall
be applied mutatis mutandis to the audit of government
enterprises and institutions.
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Chapter IV Audit of Public Properties
Article 55
The auditing agency may in investigate the administration,
uses and other matters concerning cash, negotiable instruments,
securities and all other properties of various government
agencies; the auditing agency may make its opinion known
to the agency concerned about any improper handling
of the above matters.
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Article 56
Government agencies shall prepare a property accounting
reports under the Law of Accounting and other regulations.
These reports must be submitted to the audit agency
within the prescribed time on matters concerning the
increase or decrease, custody, transfer, and disposal
of the real estate, supplies or other properties under
their administration. The audit agency may assign personnel
to look into these areas.
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Article 57
Where government agencies desire to abandon properties
under their administration which have been worn out
after the prescribed period of use, and where these
properties are of certain prescribed original value,
the case shall be reported to the auditing agency for
inspection. The abandoned properties, which can not
be utilized in other ways and its original value exceed
the prescribed amount, and the destruction of outdated
accounting documents, vouchers, registers and reports
after legal reservation period, shall be destroyed with
the concurrence of the competent auditing agency.
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Article 58
Where there is disappearance, destruction, or loss
due to other causes, in cash, negotiable instruments,
securities, properties and other assets in the possession
of the various government agencies, the case shall be
reported, together with the related evidences, to the
auditing agency for inspection.
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Article 59
The audit agency has the right to inspect and examine
the planning, designing, bidding, implementing, accepting
and other related procedures of procurement of government
agencies. When any illegal procedures or not consist
with the contract, regulations or unreasonable situations
are founded, the audit agency should notice the auditee
to have a proper action. Government agencies should
provide any related information for the audit.
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Article 60
Where the negotiation over prices in connection with
construction work or procurement by various agencies
follows certain special condition as to warrant the
basis of actual cost plus profit, the term shall be
specified in the contract. The auditing agency may dispatch
personnel to the contracting party to audit its accounts
relative to the actual cost, and inform the agency concerned
of the result of the audit.
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Article 61
On the occasion of drawing lots for repayment of bond
principal or destruction of redeemed bonds, the bond
administrative agency shall notify the auditing agency.
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Chapter V Evaluation of the Efficiency of Financial
Administration
Article 62
The head agencies of different department shall inform
the auditing agency periodically, of their evaluation
of the agencies under their supervision, about the latter’s
in progress in carrying out on-going programs and actual
status of receipts and disbursements against the respective
expenditures, on a monthly or other periodic basis.
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Article 63
In the submission of accounting statements and annual
reports by various government agencies to the auditing
agency, the performance report which describes the program
implementation and budget execution shall be appended.
Where there is available information on measurable job
units, the cost analysis report should be appended and
interpreted.
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Article 64
In submission of semi-annual and annual reports by
government enterprises and institutions, business operation
reports shall be appended thereto. Where cost accounting
has been in use, the cost analysis report, together
with an accompanying interpretation, shall also be appended.
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Article 65
In the audit of general fund agencies, the auditing
agency shall pay attention to the following:
- The standing procedure of operation for administration,
finance, accounting and general services and the relevant
laws and regulations;
- The progress of on-going programs, receipt and disbursement
budgets, and the execution and performance thereof;
- The efficiency of the financial operations and sampling
check of cash and properties;
- The verification of the responsibilities relative
to receivables, payables and other assets and debts;
- Improvements should be made in the above matters.
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Article 66
To concerning the audit of government enterprises
and institutions, audit agency shall pay attention to
the following, in addition to those enumerated in the
foregoing Article:
- Accuracy in the calculation of assets, liabilities
and income or loss;
- Sources and uses of capital;
- Efficiency in the implementation of major projects;
- Causes of fluctuation in costs, expenses and business
revenues and outlays;
- Trend of business prospects;
- The conditions of finance and the performance of
business.
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Article 67
In auditing the annual reports of various government
agencies or funds, the auditing agency shall pay attention
to the following:
- Violation of law, dereliction of duty or other irregularities,
if any;
- Budgetary deficit or surplus;
- The ratio of that portion accomplished and that
yet to be accomplished aginst the administrative plan,
operational plan, or business plan;
- The degree of economic or uneconomic operation;
- The comparison of administrative efficiency, operational
efficiency, and business effeciency among similar
agencies or funds;
- Other matters related to the annual reports.
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Article 68
During the auditing of the general final report of
the Central Government, the auditing agency shall pay
attention to the following:
- Whether or not the revenue and expenditure of government
could coordinate with the budget; if not, what's the
reason?
- Whether or not the annual revenue could balance
with the annual expenditure; if not, what's the reason?
- Whether or not the revenue and expenditure are compatible
with the national economy and economic growth;
- Whether or not the revenues and expenditures dovetail
with the national policy and the administrative program
of the government;
- Recommendations for the improvement on revenues
and expenditures made by all interested parties.
The above points worthy of attention are applicable
in auditing the general final reports of local governments.
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Article 69
Where the auditing agency suspects that there is negligence
of duty or inefficiency while evaluating the performance
of various government agencies, it should report its
suspicion to the officer-in-charge of the respective
higher agencies and also to the Control Yuan. Where
the flaw is identifiable with defect in statutory or
regulatory provisions, or due to inadequate facilities,
recommendations for improvement shall be made for the
benefit of the agencies concerned.
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Article 70
Prior to the preparation of the annual budget estimates
by the government, the auditing agency shall provide
recommendations concerning the audit result of the budget
execution for preceding years.
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Chapter VI Decision on Financial Responsibility
Article 71
The public functionaries concerned shall not be relieved
from the responsibility of their financial acts until
a decision has been made by the auditing agency after
making due examination.
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Article 72
Where it has been found out by the auditing agency
that the occurrence of incidents as mentioned in Article
58 was due to the negligence of the persons in charge,
the head of the agency and their supervisor shall be
held responsible for indemnity payment.
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Article 73
For cases of missing, destruction or loss of valuable
items which were originally in the joint custody of
several persons and couldn't identify the responsible
person, these persons shall be held jointly responsible
for indemnity payment; intended persons are to be treated
same as persons of joint action.
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Article 74
Where there is no full compliance within time limit,
concerning the cash refund required by the auditing
agency, and the officer-in-charge of agency, or his
authorized personnel, and the chief accountant, have
approved the payments on purpose or malpractice, they
shall be held jointly responsible for indemnity payment.
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Article 75
Where it is discovered that the chief cashier and
the clerk cashier issued check or paid cash in an amount
exceeding the amount approved by the approving officer,
or erroneously paid to a wrong claimant, they shall
be held responsible for indemnity payment.
Where the officer-in-charge of accounting, and the
officer-in-charge of the agency or his proxy have countersigned
the check in question for which full compensation has
not yet recovered from the persons mentioned in the
first paragraph, they shall jointly be held responsible
for indemnity payment.
The above two paragraphs shall be applicable mutatis
mutandis to the Treasury checks issued by disbursing
agencies in the Treasury Area.
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Article 76
In the examination of the accounting records, reports,
if there is any difference with vouchers and cause the
losses of public funds, the officer-in-charge of agency
and chief accountant shall be held responsible for indemnity
payment.
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Article 77
In reconsidering or re-examining the cases of disallowance,
recovery or compensation, the auditing agency under
situations below may wholly or partially relieve the
indemnity payment required on the persons concerned,
or suggest corrective measures:
- Confirmed after inspection that the case was not
related to deliberation, major fault, or corruption;
- Substantiated things of financial value acquired
or calculable profits obtained resulting from disbursements.
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Article 78
With respect to cases of disallowance, refund or indemnity
payment as decided by the auditing agency, the officers-in-charge
of the responsible agencies shall be asked to effect
the payment within the prescribed period. The Treasury
and the relevant agency in charge of government enterprises
or institutions shall also be informed. The officer-in-charge
of the responsible agency shall be referred to the court
for compulsory action after expiration of the set time
limit. Upon payment, it shall be reported to the auditing
agency for examination.
Where there is non-compliance in above case and causing
a loss to the government funds, the officer-in-charge
shall be held responsible for indemnity payment, and
he shall be sued in a court by the Treasury and the
relevant agency in charge of government enterprise or
institutions. The case shall also be reported to the
auditing agency for examination.
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Chapter VII Attached Codes
Article 79
The auditing agency may conduct audit into he enterprises
jointly operated by the government and private interests
and those private organization that receive government
subsidies in a manner prescribed in this Law.
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Article 80
All of the auditing regulations, schedules and documentary
formats shall be under the National Audit Office's administration.
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Article 81
The rules governing application of this Law shall
be drafted by the National Audit Office Audit and submitted
to the Control Yuan for approval and promulgation.
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Article 82
This Law shall become effective from the date of promulgation
except the article 59 will become effective up to the
National Audit Office.
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Regulations
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