Following public enterprises and institutions shall be audited by an auditing agency:
1.Sole government ownership;
2.Joint government and private ownership with the government holding over 50 percent of the stock;
3.Reinvestment by the enterprises described in 1, and 2 which accounts for over 50 percent of the total capital of the reinvested enterprise.

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.

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.

Government enterprises and institutions shall prepare the semi-annual and the annual reports and have these reports submitted to the auditing agency for audit.

Earnings or loss of a government enterprise or institution shall be certified by the audit agency in charge.

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.

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.

Articles 41 to 43, Article 45 and Article 46 shall be applied to the audit of government enterprises and institutions.