Dong Dasheng, Former deputy auditor general of the National Audit Office, stated that China has not audited the overseas assets of the centrally administered State-owned enterprises (SOEs). Those assets amount to over 4 trillion yuan (US$639.6 billion).
According to the State-owned Assets Supervision and Administration Commission, as of the end of 2013, the value of the assets that over 110 centrally administered SOEs owned totaled 35 trillion yuan (US$5.59 trillion), 12.5 percent (around 4.3 trillion yuan) of which was located overseas.
According to Dong, "In the last years, the unwritten practice has been that the National Audit Office only audited 57 of the 118 central State-owned enterprises for the economic responsibility of leading cadres. It was left to other departments to organize or hire accounting firms to conduct audits of the rest of the SOEs. The National Audit Office has not audited the subsidiaries of the central SOEs. Basically there has been no audit of the increasingly large overseas investments of the central SOEs, leaving a large number of blank audit spots among the SOEs.”
Dong recommended that auditors be co-located at these central SOEs.
Source: China Economic Net, March 3, 2015 http://big5.ce.cn/gate/big5/wap.ce.cn/szsh/201503/03/t20150303_4706218.html