審計法施行細則

The Rules is prescribed pursuant to Article 81 of the Audit Act (referred to as “the Act” hereunder).

According to the Article 4 of the Act, the local Audit Divisions (Offices) shall only audit central government agencies and their subordinate institutes' financial activities designated by National Audit Office, and the audit results shall be reported to National Audit Office. According to the Article 7 of the Act, the Audit Divisions (Offices)delegated to audit financial activitiesshall be responsible for the audit results.

1According to the Article 8 or Article 9 of the Act, the auditing agency shall notify the scope of delegating affairs by writing to the delegated auditing agency, organization or specialist.

2The delegated audit agency shall be responsible for the audit decisions. In case of re-examination, the delegated audit agency shall conduct the re-examination affairs. The result of assignment delegated to other organization or specialist shall be decided by the original audit agency.

According to the Article 12 of the Act,the audit works including the on-site audit conducted by dispatched auditors or spot audit of submitted financial reports shall be regulated by the audit agency.

The auditorsconducting on-site audit or spot audit mentioned in above article may notice the inquiry, correction or supplement affairs by writing to each agency audited.

Auditors shall display dispatch documents when they go to agencies to perform audit works.

1The Inspection Certificatementioned inthe Article 15 of the Act shall be issued by the officer of the audit agency, and thestatement of the Inspection Certificate shall include reasons, place, date and the name and position of holder.

2Rules governing the use of the Inspection Certificate shall be stipulated by the National Audit Office.

If the audit agency needs assistance of other organizations when exercising inspection function, each organization has the obligation to assist.

1When sealing offobjects according to Article 16 of the Act,the auditor shall take notes about the kinds and numbers of objects sealed off and sign or stamp the auditor’s chop on the cover. The auditor also shall order the owners or related persons to sign or stamp their chops on the notes and cover.

2The owners or related persons shall be ordered to take care of the objects sealed off and must not open them without authorization.

When takingthe objects sealed off according to Article 16 of the Act, the auditor shall take notes about the kinds and numbers of objects taken and give receipts to the owners or related persons.

When auditor performsaudit function, the officer or higher agency of audited agency may be notified to dispatch staffs for observation. The audit result may be written on notes, and related persons and dispatched staffs shall sign or stamp their chops on the notes.

After completing auditing each audited agency, the auditor shall immediately submit detailed and accurate report to the competent auditing agency for approval. Unless special cases which have been approved, the deadline of submitting report shall not be longer than 20 days.

When issuing the notice according to the Act, the audit agency shall take a receipt to proof the date of service or deliver the notice by registered mail. If there are more than 2 agencies concerned in the same audit case, the notices shall be delivered respectively.

1Unless the audit notices relate to correction, disallowance, refund or indemnity payments shall be conducted according to the Article 23 to Article 25 of the Act, the auditedagency shall answer the audit agency within the prescribed period about how the audit notices are conducted.

2The audit agency shall issue a written notice to theaudited agency which does not submit their answer within the prescribed period.In case no answer is submitted after the written notice is served, Article 17 may be invoked to deal with the case.

The agency notified to take punishment actions shall conduct actions according to the notice and report the results to audit agency.

The case which the audit agency requests the officer of audited agency to take punishment actionsaccording to the Article 17 of the Act shall be duplicated to the Control Yuan. The case with significant importance shall be specially reported to the Control Yuan for action, and be notified to the audited agency after the Control Yuan has made decisions.

About the case referred to the court for actionaccording to the Article 17 of the Actor the financial litigation case has been audited, the judicial authority may inquire audit agencies or access to related files for understanding the details or collecting evidence. The auditors who have conducted such cases do not be called for examination unless involving private behavior.

The audit agency shall carefully re-audit the accounting report when the audited agency submits explanationsaboutdisallowance, reduction, refund or indemnity payments. The audit agency shall respectively approve or reject the explanations, and issue the notice after the decision of the case.

1If the audited agencies insist on disagreement to the audit agency’s decision of re-examinationaccording to Article 27 of the Act, they may requestto re-audit within 30 days after receiving notices, and the original audit agency shall submit the related documents and comments to higher audit agency to re-audit. If the original audit agency is National Audit Office, requestfor re-auditingis prohibited.

2Request for re-auditing may be filed once only.

3The date of decision prescribed in Article 27 of the Act is the promulgation oreffective date of general financial statement.

4The date of decision to be responsible for indemnity payment prescribed in Articles 72 to 76 of the Act is the date that the responsible agency’s officer receives the notice issued by the audit agency according to Article 78 of the Act.

The approval or rejection of request for reconsideration, re-examination and re-auditing, the decision without consulting in Article 23 of the Act, and therelieving of indemnity payment or corrective measuresin Article 77 of the Act shall be considered in the Council of Auditors or the Auditors’ Meeting for decision.

The public announcementissued by audit agencies according to the Article 29 and Article 32 of the Act shall be on the communiquesof governmental agencies or National Audit Office.

1The submitting period of the approved distribution budget, administrative plans andoperational plans of government agencies in the Article 35 of the Act is prescribed by competent auditing agencies. The audit agency shall issue a written notice to the audited agency which does not submit their documents mentioned above within the prescribed period. In case no document is submitted after the written notice is served, Article 17 of the Act may be invoked to deal with the case.

2The distribution budgetmentioned above shall match the implementation progress of plans. The auditing agency shall make detailed records for reviewing and authorizing the documents,vouchers and checks which Treasury use to effect a payment, and examininggovernment agencies’financial activities and financial statements.

Article 32 of Accounting Act shall be applied to the submitting periodof accounting reports of various government agencies and funds.

The accounting reports and annual financial statements of respective government agencies and funds shall be directly submitted to the competent auditing agencies. The auditing agency shalldirectly deliver the notice of audit,the notice of approval of audit and the certificate of approval to respectiveaudited agencies. In special case, the higher agency of audited agency may receive the documents instead with the concurrence of the competent auditing agency.

When agencies or funds delegate or subsidy other agencies, schools or groups to conduct expenses, they shall comply with the Article 36 of the Audit Act, and audit agencies may dispatch auditors to conduct on-site audit. If the original documents and vouchers are deposited in the delegated or subsided agencies, schools or groups, they shall notice to the competent audit agencies.

The Articles 36, 63 and 64 of the Act shall be applied to the submitting of respective agencies’ accounting reports, and the competent audit agency may notify the audited agency to submit other documents when necessary.

According to the Article 36 of the Audit Act, agencies or funds shall submit related information files, which are decided by the National Audit Office, to the competent audit agencies.

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The auditors dispatched by the auditing agency to a tax collecting agency to conduct the audit of tax assessment and collection shall spot-audit account books, reportsand vouchers. Where there is a calculation error or irregularity uncovered, the auditing agency shall notify the competent authority for appropriate action by writing. The case with significant importance may be conducted according to the Article 17 of the Act.

1The auditing agency shall carefully audit the business or operational plan and budget, projects to be implemented by stages and cash flow estimate submitted by government enterprises and institutionsaccording to the Article 49 of the Act. Where there is a mistakes or inappropriateness uncovered, government enterprises and institutions shall be notified to correct or re-preparation for auditing monthly accounting report, calculation sheet and annual financial statement.

2The submitting period of the plan, budget, projects to be implemented by stages and cash flow estimate mentioned above is prescribed by competent auditing agency.The auditing agency shall issue a written notice to the government enterprise or institution which does not submit their documents mentioned above within the prescribed period. In case no document is submitted after the written notice is served, Article 17 of the Act may be invoked to deal with the case.

1While auditing monthly accounting report and calculation sheet submitted by government enterprises and institutions according to the Articles 49 and 50 of the Act, the audit agency shallbe careful of the following matters:

21.To auditthe implementation of revenues, outlays,earnings and losses of business budget. The reason shall be investigated if there are significant differences between actual figures and budget.

32.To evaluate the movement of actual quantity of main production, unit cost and unit price. The reason shall be investigated if there aresignificant differences between actual figures and budget or inconsistency between production and sales.

43.To analyze the structure of assets, liabilities, owner's equity and important financial ratio. The reason shall be investigated if there areunusual events or apparently recession trends.

54.To examine the calculation of revenue and expenditure. The inquiry or correction shall be made immediatelyif there are omissionsor errors.

65.The review of improvement shall be notified while there is a significant change in budget execution.The audit agency shall dispatch auditors to investigateindepth and conduct according to law ifirregularities or significant special problems are uncovered.

1While dispatching auditors to respective government-owned enterprisesto conduct on-the-spot audit or inspectthe receipts, disbursements and properties according to the Articles 12 and 13 of the Act, the audit agencies not only shall follow the Articles 65, 66 and 67 of the Act but also be careful of the following matters:

21.To verify the correctness of materials submitted by government-owned enterprises and the effectiveness of improvement related the notice of audit.

32.To evaluate the effectiveness of production (operation) plan, and to notice the utilization of coordination of production and marketing, equipment and personnel.

43.To audit each content of revenue and expenditure of business (enterprise), to notice the disbursements that violate budgetary or related laws or statutes, and to analyze the differences betweenbudgets and actual figures.

54.While auditing the cost of products, the audit agencies shall notice the calculation of cost of each product, the analysis of unit cost, andthe comparison between cost and price.

65.While auditingthe implementation of capital expenditure budget, the audit agency shall be careful of the following matters:

7(1) The plans and legal budgets.

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The legal procedure mentioned in the Article 52 of the Act is the procedure of distribution of surplus and replenishment of lossaccording to legal budget and Budget Act.

The related material of reappraisal of fixed assets submitted by respective agencies according to the Article 53 of the Actshall not be accounted before examinedby the audit agency for reference.Even in special case that the audit agency approves to be accounted and depreciated in advance, it shall be adjusted after the audit agency’s examination.

While auditing matters listed in the Articles 55 and 56 of the Act, the audit agency’s auditors may make and sign inventory records with the audited agency’spersonnel for on-siteinventory of property evidence and reserves. The auditors may execute the mission according to the Articles 9 and 10 of this Rule when necessary.

1In the Article 57 of the Act, the prescribed period of use shall be regulated by the Table of Service Life of Fixed Assets; the certain prescribed value shall be regulated by the Executive Yuan and approved by the National Audit Office. If the property under the prescribed period of use will be abandoned,the administrative agency shall submit the case to the responsible agency for approval and transmit it to the competentaudit agency for inspection.

2Before submitting inventoriesto the competent audit agency for approval, the administrative agencies shall not destroy the abandoned properties, which cannot be utilized anymore and its original value exceed the certain prescribed value, and the accounting documents, vouchers, registers and reports after legal reservation period.

1The other assets mentioned in the Article 58 of the Act means the creditor's claim or other property rights of government or agencies. When there is loss mentioned in the Article 58 of the Act, the agency shall immediately submit related documents to the competent audit agency for inspection. The case with significant importance shall be submitted to the responsible agency for approval and transmitting to the audit agency. The audit agency may dispatch auditors to monitor if necessary.

2The related documents mentioned above are testimonials,appraisal reports, witness transcripts, scene photos, other appropriateevidences, and responsible explanationsfrom judicial, police, gendarme, notary, examination,commerce etc. institutions or organizations.

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1While inspecting the planning, designing, bidding, implementing, accepting and other related procedures of procurement of government agencies according to the paragraph 1 of Article 59 of the Act, the audit agency may inspect the whole procurement case or parts of each operation stage.

2While conducting inspection, the audit agency shall be careful of the following matters:

31.Whether the procurement is conducted in accordance with the budget procedures.

42.Whether the procurement is conducted in accordance withlegal procedures, contracts and regulations.

53.Performance of procurement implementation.

64.The establishment of procurement system, regulations and related internal audit rules.

75.The effectiveness of the implementation of internal control.

86.The monitoring and evaluation results of the responsible and related agencies of government procurement.

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The audit agency may inform the audited agency to provide related materials about the implementation of procurements and monitoringresults of related agencies. In case of question, the audited agency shall give detailed and accurate answers.

The related materials, such as the reports of large procurements’ service conditions and efficiency analyses submitted to the responsible agency of government procurement, the examination conducted by the responsible agency, and the efficiency evaluations of important procurements, shall be submitted copies to the competent audit agency.

If the audited agency does not submit materials or furnish detailed and accurate answers according to the former two articles, the audit agency shall conduct the case according to the paragraph 2 of Article 14 of the Act.

When the audit agency discovers any illegal procedures, inconsistency with the contract or regulations, or inappropriateness in inspectingprocurement of government agencies, it may conduct the caseaccording to the procedures regulated in Articles 22 to25 of the Act and the Articles 14 and 15 of this Rule.

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On the occasion of drawing lots for repayment of bond principal or destruction of redeemed bonds, the bond administrative agency shall inventory these bonds to notify the audit agency. The audit agency may dispatch auditors to monitor if necessary.

The head agencies of different departments shall inform the audit agencies according to the Article 62 of the Act about their monthly or periodically evaluations of the progress of on-going plans and the implementation of receipt and disbursement budgets.

The performance reportsor cost analysis reports submitted by government agencies mentioned in the Article 63 of the Act are the progress of each plan, the implementation process of budgets, the performance of work results, or the cost analysis reports of work plans with measurable units listed in the budgets.

The business operation reports or cost analysis reports submitted by government enterprises and institutions mentioned in the Article 64 of the Act are achievements of each plan of operation or business, implementations ofbudgets, and analysis of finance. When cost accounting principles are applied to the report of causes of earnings, losses, surplus and deficit, the earnings and losses of unit cost of each product shall be analyzed and listed to be appended for submission.

While auditing government agencies, government enterprises and institutions, the audit agency not only shall notice the regulations in the Articles 65, 66 and 67, but also shall periodicallydispatch auditors to examine the internal audit and actual work records that respective agencies conduct according to Accounting Act.

Articles 48 to 53 of the Act may be applied to the audit affairs conducted by audit agency to the budget of other special fund of subordinate department, except for enterprise fund.

The procedures prescribed in Articles 23 to 27 of the Act and Article 19 and Article 20 of this Rules may be applied to the audit agency’s decision about the responsibility for indemnity payment regulated in Articles 72 to 76 of the Act.

1After receiving the notice issued by the audit agency according to Article 78 of the Act, the officer or the higher agency of the audited agency shall effect the payment within the prescribed period and report the result to the audit agency.

2The prescribed period mentioned above is decided by the audit agency.

Excluding the scope regulated in Paragraph 2 and Paragraph 3 of Article 47 of the Act, the audit agency may prescribe special audit regulationin a manner prescribed in the Act to regulate the auditing affairs conducted into the enterprises jointly operated by the government and private interests and those private organization that receive government subsidies.

If there are some incomplete matters, the National Audit Office may petition the Control Yuan to amend the Rules.

The Rules shall become effective after the approval of the Control Yuan.