Cap. 122 - Audit Ordinance

To provide for matters relating to the office of the Director of Audit (including the appointment of the Director in accordance with the Basic Law, the tenure of office of the Director, and the duties and powers of the Director) and for the auditing of and reporting on the public accounts and the accounts of specified persons, bodies corporate and other bodies and for matters incidental thereto or connected therewith. (Amended 31 of 2025 s. 39) [10 December 1971] L.N. 166 of 1971(Format changes—E.R. 6 of 2019) 1. Short title This Ordinance may be cited as the Audit Ordinance. 2. Interpretation In this Ordinance, unless the context otherwise requires— accounting officer (會計人員) means— (a) any public officer who is entrusted with—(i) the collection, receipt, custody, issue or payment of public moneys;(ii) the receipt, custody, issue, sale, transfer or disposal of, or the accounting for, any stamps, securities, stores or any other Government property; or(iii) any monetary or financial responsibilities connected with or arising from his official duties; and (b) the head of the department in which any such public officer is employed; (Amended 31 of 2025 s. 41) Director (署長) means the Director of Audit appointed in accordance with the Basic Law; (Amended 19 of 1993 s. 2; 31 of 2025 s. 41)government regulations (政府規例) means the administrative rules known as the Government Regulations and any other administrative rules or instruments regulating the public service; (Added 31 of 2025 s. 41)President (主席) means the President of the Legislative Council; (Added 19 of 1993 s. 2) public moneys (公帑) means— (a) the general revenue; (Replaced 3 of 1983 s. 43) (b) any moneys (other than moneys in the accounts or constituting the funds specified in column 2 of Schedule 1) which are accounted for, in whole or in part, in the books or records of account of the Director of Accounting Services; and (Replaced 32 of 2000 s. 16) (c) any other moneys which the Chief Executive may declare in writing to be public moneys for the purposes of this Ordinance; (Amended 31 of 2025 s. 41) Public Service (Administration) Order (《公務人員(管理)命令》) means— (a) the Public Service (Administration) Order 1997 (Executive Order No. 1 of 1997); (b) the Public Service (Disciplinary) Regulation made under section 21 of that Order (and together with that Order published in S.S. No. 5 to Gazette No. 2/1997); and (c) any other regulation made or any direction given under that Order, as amended from time to time. (Added 31 of 2025 s. 41) 3. Appointment of Director in accordance with Basic Law The Director is to be appointed in accordance with the Basic Law.(Replaced 31 of 2025 s. 42) 3A. Director not to hold other office of emolument under Government while holding office of Director The Director must not, whilst holding the office of Director, hold any other office of emolument under the Government.(Added 31 of 2025 s. 43) 4. Tenure of office of Director (1) A person holding the office of Director— (Amended 31 of 2025 s. 44)(a) shall hold that office during good behaviour; and(b) may only be removed from that office in accordance with the Basic Law. (Replaced 31 of 2025 s. 44)(2) Where a person is removed from the office of Director in accordance with the Basic Law, a full statement of the circumstances shall be made at the first opportunity to the Legislative Council. (Amended 31 of 2025 s. 44) 4A. Salary of Director (1) The Director is entitled to a salary at—(a) the rate specified and last increased under the former section 4A(1) immediately before the commencement date; or(b) if the rate is subsequently increased under subsection (2)—the rate so increased. (Replaced 31 of 2025 s. 45)(2) The Chief Executive may, from time to time, by order published in the Gazette, increase the rate of salary of the Director with effect from the date specified in the order. (Replaced 31 of 2025 s. 45)(3) The salary payable to the Director by virtue of this section shall be charged on and paid out of the general revenue.(4) In subsection (1)—*commencement date (生效日期) means the date on which section 45 of the Statute Law (Miscellaneous Provisions) Ordinance (31 of 2025) comes into operation;former section 4A(1) (原有第4A(1)條) means section 4A(1) as in force immediately before the commencement date. (Added 31 of 2025 s. 45)(Added 35 of 1979 s. 2) Editorial Note:* Commencement date: 24 August 2025. 5. Director’s employment as public officer The Director is to be employed subject to the Public Service (Administration) Order, the government regulations, and such Ordinances as apply generally to public officers.(Replaced 31 of 2025 s. 46) 6. Nomination and reporting for filling of vacancy in office of Director When a vacancy occurs in the office of Director for any reason, the Chief Executive must, in accordance with the Basic Law, nominate and report to the Central People’s Government for appointment of another person to hold that office.(Replaced 31 of 2025 s. 46) 7. Acting appointment to office of Director If, in the opinion of the Chief Executive, the Director is unable to exercise his powers or perform the duties of this office during any period for any reason, the Chief Executive shall appoint another person to act as the Director during that period.(Amended 31 of 2025 s. 47) 8. Duties of the Director (1) The Director shall—(a) examine, inquire into and audit the accounts of all accounting officers in respect of public moneys, stamps, securities, stores and any other Government property; and(b) examine, inquire into and audit the accounts, statements and records kept in respect of the accounts or funds specified in column 2 of Schedule 1 by the public officers specified opposite such accounts or funds. (Replaced 32 of 2000 s. 17)(2) The Director shall satisfy himself that—(a) adequate directions and instructions have been given to ensure the due collection of public moneys or moneys in the accounts or constituting the funds specified in column 2 of Schedule 1 and that the Ordinances relating thereto and such directions and instructions have been duly observed by the public officers concerned therewith; (Amended 32 of 2000 s. 17)(b) all issues and payments of public moneys or moneys in the accounts or constituting the funds specified in column 2 of Schedule 1 were made in accordance with proper authority; (Amended 32 of 2000 s. 17)(c) all payments were properly chargeable and are supported by sufficient vouchers or proof of payment or otherwise properly accounted for;(d) the rules and procedures applied to the issue and payment of public moneys or moneys in the accounts or constituting the funds specified in column 2 of Schedule 1 are sufficient to secure an effective control over expenditure and that such rules and procedures have been duly observed by the public officers concerned therewith; (Amended 32 of 2000 s. 17)(e) any public moneys appropriated by the Legislative Council for a specified purpose and expended by a public officer have been expended in the due application of that purpose and in accordance with the authority under which the appropriation was made; and(f) adequate rules and procedures have been made to ensure the proper receipt, custody, issue, sale, transfer and disposal of, or the accounting for, any stamps, securities, stores and other Government property and that such rules and procedures have been duly observed by the public officers concerned therewith.(3) The Director shall not be required to undertake any duty which is, in his opinion, incompatible with the duties imposed on him by this or any other Ordinance. 9. Powers of the Director (1) In the performance of his duties and the exercise of his powers under this Ordinance the Director may—(a) authorize in writing any public officer on his behalf to conduct any inquiry, examination or audit and require such public officer to report thereon to him:Provided that any such authority shall be subject to the concurrence of the head of the department in which the public officer is employed; (Amended 31 of 2025 s. 49)(b) require any public officer to give such explanation, or to furnish such information, as the Director may think fit in order to enable the Director to discharge his duties;(c) without payment of any fee, cause search to be made in, and extracts to be taken from, any book, document or record in any Government department; (Amended 31 of 2025 s. 49)(d) require any person whom he thinks fit to explain any matter relating to—(i) the receipt, expenditure or custody of public moneys or moneys in the accounts or constituting the funds specified in column 2 of Schedule 1; (Amended 32 of 2000 s. 18)(ii) the receipt, custody, issue, sale, transfer or disposal of, or the accounting for, any stamps, securities, stores or other Government property; or(iii) anything else which is, in the opinion of the Director, necessary for him to know for the due performance of his duties and the exercise of his powers under this Ordinance; and(e) report to the Secretary for Justice any matter which he thinks fit. (Amended L.N. 362 of 1997)(2) In the performance of his duties and the exercise of his powers under this Ordinance, the Director and any public officer or other person authorized in writing by him shall have access to all records, books, vouchers, documents, cash, receipts, stamps, securities, stores and any other Government property in the possession of any public officer.(3) In the performance of his duties and the exercise of his powers under this Ordinance the Director shall not be subject to the direction or control of any other person or authority. 10. Appointment of staff of the Director (1) The Chief Executive may appoint other public officers to assist the Director in the performance of his duties and the exercise of his powers under this Ordinance. (Amended 31 of 2025 s. 50)(2) All members of the Director’s staff shall be employed subject to the Public Service (Administration) Order, the government regulations, and such Ordinances as apply generally to public officers. (Amended 31 of 2025 s. 50)(3) Subject to subsection (4), the Director may delegate any of his duties or powers under this Ordinance to any public officer. (Replaced 32 of 2000 s. 19)(4) The Director may delegate his duties or powers under this Ordinance in respect of the certifying and reporting of accounts, other than the certifying and reporting of the accounts which are required to be transmitted to the Director by the Director of Accounting Services in accordance with section 11, to any public officer who is a member of his staff appointed to or acting in the rank and office not below that of a Principal Auditor and specified in Schedule 2 provided that any public officer so delegated shall, when signing an opinion or report, indicate beneath his signature the office he holds and the fact that he is signing on behalf of the Director. (Added 32 of 2000 s. 19) 11. Submission of annual accounts by the Director of Accounting Services to the Director (1) The Director of Accounting Services shall, within the period of 5 months, or such longer period as the Chief Executive may determine, after the close of each financial year, transmit to the Director— (Amended 31 of 2025 s. 51)(a) a statement of the assets and liabilities of the Government;(b) an annual statement of the receipts and payments by the Government; (Amended 17 of 1985 s. 2)(c) a statement of the assets and liabilities of each fund, other than the Lotteries Fund, established in accordance with section 29 of the Public Finance Ordinance (Cap. 2); (Replaced 45 of 1988 s. 2)(d) a statement of the receipts and payments by each fund, other than the Lotteries Fund, established in accordance with section 29 of the Public Finance Ordinance (Cap. 2); and (Replaced 45 of 1988 s. 2)(e) such other statements as the Chief Executive may specify from time to time. (Added 17 of 1985 s. 2. Amended 31 of 2025 s. 51)(2) (Repealed 45 of 1988 s. 2) 12. Examination and audit of annual statements by the Director and submission of report to the President (1) On receipt of the statements referred to in section 11, the Director—(a) shall examine and audit the statements; and(b) shall, within the period of 7 months after the close of the financial year, or such longer period as the Chief Executive may determine, prepare and submit to the President a report in respect of his examination and audit of the statements and on any matter relating to the performance of his duties and the exercise of his powers under this Ordinance, together with— (Amended 60 of 1978 s. 3; 19 of 1993 s. 3; 31 of 2025 s. 52)(i) a copy of the statement of assets and liabilities of the Government, duly certified by him; (Amended 17 of 1985 s. 3)(ii) a copy of the annual statement of the receipts and payments by the Government, duly certified by him;(iii) a copy of each statement of assets and liabilities transmitted to him under section 11(1)(c), duly certified by him; and (Replaced 45 of 1988 s. 3)(iv) a copy of each statement of receipts and payments transmitted to him under section 11(1)(d), duly certified by him. (Replaced 45 of 1988 s. 3)(2) Within the period of 1 month, or such longer period as the President may determine, after the receipt of the report and certified statements from the Director under subsection (1), a copy of the report and certified statements shall— (Amended 49 of 1984 s. 2; 19 of 1993 s. 3)(a) be laid before the Legislative Council; and(b) be submitted to the Government. (Replaced 60 of 1978 s. 3)(2A) Within the period of 3 months, or such longer period as the President may determine, after the laying of the report and certified statements from the Director under subsection (2)(a), a copy of the report of the Public Accounts Committee of the Legislative Council shall— (Amended 19 of 1993 s. 3)(a) be laid before the Legislative Council; and(b) be submitted to the Government. (Added 49 of 1984 s. 2)(3) Without prejudice to subsections (1), (2) and (2A)— (Amended 49 of 1984 s. 2)(a) the Director may submit to the President at any time a special report on any matter incidental to the performance of his duties or the exercise of his powers under this Ordinance; and (Amended 60 of 1978 s. 3; 19 of 1993 s. 3)(b) the procedure to be followed in respect of such report shall be in accordance with subsections (2) and (2A). (Replaced 49 of 1984 s. 2)(Amended 31 of 2025 s. 52) 13. Director’s report of serious irregularities to the President (1) The Director shall report to the President any matter which— (Amended 60 of 1978 s. 4; 19 of 1993 s. 4; 31 of 2025 s. 53)(a) constitutes, in the opinion of the Director, a serious irregularity in the accounting for—(i) the receipt, expenditure or custody of public moneys or moneys in the accounts or constituting the funds specified in column 2 of Schedule 1; or (Amended 32 of 2000 s. 20)(ii) the receipt, issue, custody, sale, transfer or delivery of any stamps, securities, stores or any other Government property; and(b) comes to his notice in the performance of his duties or the exercise of his powers under this Ordinance.(2) The procedure to be followed in respect of a report to the President under subsection (1) shall be in accordance with section 12(2) and (2A). (Replaced 49 of 1984 s. 3. Amended 19 of 1993 s. 4) 14. Audit, examination or inquiry into the accounts of bodies corporate, etc. authorized by Ordinances (1) Where any Ordinance empowers the Director to audit, examine or inquire into the accounts of any person, body corporate or other body, the Director—(a) shall have in relation to such person, body corporate or other body, its members, officers and employees, the same discretion and powers as are conferred on him by sections 8 and 9 in relation to public moneys, stamps, securities, stores and any other Government property; and(b) may authorize in writing any person publicly carrying on the profession of accountant or any public officer to audit, examine or inquire into the records and accounts of such person, body corporate or other body and require the authorized accountant or public officer to report thereon to the Director in such manner as the Director may specify: Provided that any such authority to a public officer shall be subject to the concurrence of the head of the department in which the public officer is employed. (Amended 31 of 2025 s. 54) (2) Any person, body corporate or other body whose accounts have been audited, examined or inquired into under subsection (1) may be charged such fee (if any) as may be determined under section 17(1). 15. Audit, examination or inquiry into the accounts of persons, bodies corporate, etc. under Chief Executive’s authority (Amended 31 of 2025 s. 55)(1) Notwithstanding that he is not empowered by any Ordinance to audit, examine or inquire into the accounts of a person, body corporate or other body, the Director may audit, examine or inquire into the records and accounts of any person, body corporate or other body if—(a) he is authorized in writing to do so by the Chief Executive in the public interest; and (b) in the opinion of the Director, such audit, examination or inquiry will not interfere with the due performance of his duties and the due exercise of his powers under this Ordinance.(2) Where the Director undertakes under subsection (1) the audit, examination of, or inquiry into the records and accounts of any person, body corporate or other body, he—(a) shall have in relation to such person, body corporate or other body, its members, officers and employees the same discretion and powers as are conferred on him by sections 8 and 9 in relation to public moneys, stamps, securities, stores and any other Government property; and(b) may authorize in writing any person publicly carrying on the profession of accountant or any public officer to audit, examine or inquire into the records and accounts of such person, body corporate or other body and require the authorized accountant or public officer to report thereon to the Director in such manner as the Director may determine: Provided that any such authority to a public officer shall be subject to the concurrence of the head of the department in which the public officer is employed. (3) Any person, body corporate or other body whose records and accounts have been audited, examined or inquired into under subsection (1) may be charged such fee (if any) as may be determined under section 17(1).(Amended 31 of 2025 s. 55) 16. Director’s certification of accounts and report of accounts of bodies corporate, etc. (1) Subject to the provisions of any other Ordinance, where the Director has audited, examined or inquired into the accounts of any person, body corporate or other body under section 14 or 15 he shall—(a) if he has audited the accounts of such person, body corporate or other body, submit to the Chief Executive a statement of such accounts, duly certified by him; and(b) prepare such a report (if any) as he may think fit in respect of his audit, examination or inquiry into the accounts and submit such report (if any) to the Chief Executive.(2) If the Director so requests, the Chief Executive shall authorize the Director to transmit to the President a copy of any certified statement of accounts or report submitted to the Chief Executive under subsection (1), and the procedure to be followed in respect of such statement or report shall be in accordance with section 12(2) and (2A). (Replaced 19 of 1993 s. 5)(Amended 31 of 2025 s. 56) 17. Fees to be determined by the Financial Secretary (1) Subject to the provisions of any other Ordinance, the fee (if any) charged for the audit, examination or inquiry into the accounts of any person, body corporate or other body undertaken by the Director under section 14 or 15 shall—(a) be determined by the Financial Secretary;(b) be payable by such person, body corporate or other body; and(c) be paid into the general revenue.(2) Subject to the provisions of any other Ordinance, the fee (if any) payable to an authorized person for the audit, examination or inquiry into the accounts of any person, body corporate or other body under section 14(1)(b) or 15(2)(b) shall— (E.R. 6 of 2019)(a) be determined by the Financial Secretary; and(b) be paid from the general revenue. 18. Amendment of Schedules (1) The Financial Secretary may, by notice published in the Gazette, amend Schedule 1.(2) The Director may, by notice published in the Gazette, amend Schedule 2.(Added 32 of 2000 s. 21) Schedule 1 [ss. 2, 8(1) & (2), 9(1), 13(1) & 18(1)]Accounts and Funds subject to Audit by the Director Item Accounts/Funds Responsible public officer Statutory provisions under which the account or fund is kept or operated or in which the account or fund is referred to 1. High Court Suitors’ Funds Registrar of the High Court Rule 4 of the High Court Suitors’ Funds Rules (Cap. 4 sub. leg. B). 2. Official Receiver in Bankruptcy Account Official Receiver Section 91(1) of the Bankruptcy Ordinance (Cap. 6). 3. Bankruptcy Estate Account Official Receiver Section 128 of the Bankruptcy Ordinance (Cap. 6). 4. Official Administrator’s Account Registrar of the High Court in his capacity as the Official Administrator Section 23A(1) of the Probate and Administration Ordinance (Cap. 10). 5. Labour Tribunal Suitors’ Funds Registrar of the Labour Tribunal Rule 5 of the Labour Tribunal (Suitors’ Funds) Rules (Cap. 25 sub. leg. D). 6. Companies Liquidation Account Official Receiver Section 293(1) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32). (Amended 28 of 2012 ss. 912 & 920) 7. Independent Commission Against Corruption Welfare Fund Commissioner of the Independent Commission Against Corruption Section 17A of the Independent Commission Against Corruption Ordinance (Cap. 204). 8. District Court Suitors’ Funds Registrar of the District Court Rule 4 of the District Court Suitors’ Funds Rules (Cap. 336 sub. leg. E). 9. Small Claims Tribunal Suitors’ Funds Registrar of the District Court Rule 5 of the Small Claims Tribunal (Suitors’ Funds) Rules (Cap. 338 sub. leg. D). 10. Minor Employment Claims Adjudication Board Suitors’ Funds Registrar of the Minor Employment Claims Adjudication Board Rule 8 of the Minor Employment Claims Adjudication Board (Suitors’ Funds) Rules (Cap. 453 sub. leg. C). 11. Master in Lunacy Account Registrar of the High Court in his capacity as the Master in Lunacy Not applicable. 12. (Repealed 31 of 2025 s. 57) 13. Official Receiver in Voluntary Arrangement Account Official Receiver Sections 2 (definition of nominee) and 20H(1)(a)(ii) of the Bankruptcy Ordinance (Cap. 6) and rules 122C(2)(i) and 122D(3) and (4) of the Bankruptcy Rules (Cap. 6 sub. leg. A). (Added L.N. 64 of 2001) 14. Competition Tribunal Suitors’ Funds Registrar of the Competition Tribunal Rule 5 of the Competition Tribunal Suitors’ Funds Rules (Cap. 619 sub. leg. F). (Added L.N. 60 of 2018) 15. Hong Kong Court of Final Appeal Suitors’ Funds Registrar of the Hong Kong Court of Final Appeal Rule 5 of the Hong Kong Court of Final Appeal Suitors’ Funds Rules (Cap. 484 sub. leg. C). (Added L.N. 60 of 2018) 16. Lands Tribunal Suitors’ Funds Registrar of the Lands Tribunal Rule 5 of the Lands Tribunal (Suitors’ Funds) Rules (Cap. 17 sub. leg. C). (Added L.N. 60 of 2018) (Schedule 1 added 32 of 2000 s. 22) Schedule 2 [ss. 10(4) & 18(2)]Specified Public Officer 1. Deputy Director of Audit 2. Assistant Director of Audit 3. Principal Auditor (Schedule 2 added 32 of 2000 s. 22)