specializing in auditing with a certain jurisdiction. As recorded in the New Book of Tang: Records of Officials and Institutional History of Tang, Bibu took charge of auditing and examining the revenues and expenditures of the central government, local authorities, military towns, and imperial family.29 The wide range of auditing and the details of audited items were unprecedented. The Legislative Articles of Bibu and Conventions of Bibu formulated by the Tang Dynasty were special audit laws elaborating on the scope, contents, procedures, timing, means, and results of the Bibu’s auditing, and thus occupied an important position in the ancient audit laws. Bibu played an important role in national governance at this time. Yang Yan (727–781), counselor-in-chief of the Tang Dynasty, pointed out, “In the beginning, the country followed the old system and all properties were stored in the Left National Treasury; the Taifu (Ministry of Imperial Supplies) conducted accounting on a quarterly basis, and reported it to Bibu for rechecking. No loss was incurred.”30 In the later period of the Tang Dynasty, most of the old systems of Bibu’s auditing were abolished; accordingly, Bibu officials were made idle, which greatly impaired national finance.
Second, the audit functions of the Censorate were strengthened. According to the official system of the Tang Dynasty, the Censorate, apart from the Department of State Affairs, Department of Supervision, and the Central Secretariat, should also be subject to the emperor’s direct supervision. The Censorate Auditing System that originated from the Qin and Han Dynasties was further developed in the Tang Dynasty. The Collections of Liu Zongyuan recorded that, in the 14th year of the Dali period (779), an administrative office for the two capitals (Chang’an and the Eastern Capital of Luoyang) was set up, consisting of a censor, five officers, and two clerks. The administrative office took charge of “accounting the expenses of these two stations, auditing and supervising whether the revenues and expenditures accrued thereof complied with the system at the end of each month and quarter.”31 After the Bibu’s audit function weakened in the later period of the Tang Dynasty, the Censorate strengthened its supervision and inspection over national finances, and gave top priority to financial revenues and expenditures among all supervision of local and central organs. In this regard, Shu Yuanyu (791–835) alleged in the New Creation of the Censorate: Records of the Imperial Secretariat Ministry that the Censorate was “the place of accounting in the world.”32
Third, the system of internal auditing by the Ministry of Civil Affairs, the, Financial Revenue and Expenditure Ministry, and the Salt and Iron Management Ministry was established. The Tang Dynasty conducted internal and external auditing of financial revenues and expenditures. At the end of each month, all departments would prepare their account books recording revenues and expenditures, and conduct reconciliation on a monthly, quarterly, and annual basis. Therefore, fiscal institutions represented by the Ministry of Civil Affairs, Financial Revenue and Expenditure Ministry, and Salt and Iron Management Ministry were also required to conduct internal auditing of the administrative organizations, while Bibu and the Censorate conducted external auditing. Under the official system at that time, commissioners and vice commissioners of the three ministries served as the general leaders of internal auditing; a judge and patrol officer were in charge of reviewing different sectors; other officials like Shixia (official title), Liuhou (an official agent when the post of administrator or supervisor was vacant), Xunyuan (touring salt brokerage) and Jianguan (supervisor) were in charge of examining and reviewing the financial revenues and expenditures of all places. Internal auditing promoted standardized financial control. Han Huang (723–787), Minister of Financial Revenue and Expenditure Ministry, Liu Yan (715/716–780) and Pei Xiu (791–864), Forwarding Magistrates of the Salt and Iron Management Ministry, and so forth, were well known for their “proficiency in review and examination and resistance to offenders and consumption of public finance.”
This auditing mode of “unity of special audit, concurrent audit, and internal audit by different departments respectively” in general was inherited by the Song Dynasty (960–1279); however, the name and affiliations of audit institutions were changed in many cases. In the Southern Song Dynasty, the Court of Auditors had significant influence in the history of audit. Before the reform in the Yuanfeng’s regime of the Northern Song Dynasty (960–1127), such organs as the Sanbugou Office, Dumokan Office, Mabujun Office, and Dupingyou Office under the three Ministries also had audit functions. Among them, the Sanbugou Office, as a professional audit institution under the Central Government, “took charge of reviewing and auditing the account books to observe the difference and prevent errors and malfeasance.”33 However, the Sanbugou Office was affiliated to the three ministries, so it generally lacked auditing independence. Sometimes, it even faced retaliation of different sorts. As recorded in Volume 40 of Extended Continuation to Zizhi Tongjian, Liu Shi (949–997), the head of the Sanbugou Office, was framed by Li Weiqing (943–998), Minister of the Salt and Iron Management Ministry, and others as he disclosed through auditing that Li Weiqing’s son-in-law had embezzled hundreds of thousands in governmental funds. The system of Three Councils and Six Boards was restored among the reforms made during Yuanfeng’s regime. Accordingly, the three ministries of the State financial commission were deposed, and most of the audit work was reassigned to the Bibu under the Ministry of Justice. Thus, audit independence was enhanced. Besides, the rewards for audit officials were much highlighted in the reign of Emperor Yuanfeng, which is proved in the record of “an official who disclosed the embezzlement of public funds will be rewarded with three percent of the value involved.”34 Afterwards, the audit functions of Bibu and censor were gradually weakened when the imperial seat of the Song Dynasty migrated to the southern region; however, some achievements were made in respect of professionalization of audit institutions. In the first year of the Jianyan Era of the Southern Song Dynasty (1127), the Zhuangou Department was renamed as the “Audit Department,” also known as the Court of Auditors and collectively referred to as the Six Courts together with Court of Inspection, the Court of Capital Liaison, Court of Litigation, and so on. It was the first institution in the history of China specializing in auditing and using the contemporary term audit in its name. According to the Inscriptions of All Departments by Supervisory Censor Wu Bogu, Volume 8 of the Xianchun Lin’an Zhi (“Records about Lin’an from the Xianchun reign [1265–1274]”), “at the very beginning, the Court of Auditors was separated to take charge of accounting in relation to cavalry and infantry. In the second Yuanfeng year, these two courts were integrated under uniform leadership. Any official earning a salary must accept audit. Offenders should be judged according to the laws. All books of accounts in every aspect should be submitted to Danong (a government office in charge of tax incomes and expenditures). The Court of Auditors should provide the decision-making and consultation services while formulating any policies in relation to regulations on economy and plans of financial revenues and expenditures.”
The preceding historical materials account for the evolution and duties of the Court of Auditors in the Southern Song Dynasty and its duties, which are helpful in further understanding of the nature, functions, and operation mechanism of audit. The major features of the Court of Auditors are: (1) The decision-making and consultation function of audit was taken seriously and strengthened. In this case, the Court of Auditors should provide the decision-making and consultation services while making any policies in relation to economic regulation and plans of financial revenues and expenditures. (2) The range of audited entities became largely extended. Army, imperial family, and government officials should be audited. (3) The professionalization level of audit increased. Account books of revenues and expenditures, all taxes, and budgets for revenues and expenditures should be audited pursuant to the emperor’s orders, laws, legislative articles, conventions, and so on.
(4) Kedao Audit Supervising System during the Ming and Qing Dynasties
In the 13th year of the Hongwu Era (1380) of the Ming Dynasty (1368–1644), Emperor Zhu Yuanzhang deposed his counselor-in-chief and decentralized the powers of the Imperial Secretariat and counselor-in-chief
Zhang Shuo, Zhang Jiuling, et al.
Liu Xu, et al. (Later Jin Dynasty),
Shang Yongliang and Hong Yinghua,
Li Fang, Song Bai, and Xu Xuan,
Li Tao,
Tuotuo and Alutu,
