Can the parent company audit the accounts of its subsidiaries? Why?

Of course. This is called internal audit. Internal audit can be statement audit and special audit (such as procurement audit and fixed assets audit, etc.). ), project audit, investment audit, resignation audit, etc. General internal audit is completed by the board of supervisors entrusted by the shareholders' meeting, or directly entrusted by the parent company to the internal audit department.

The parent company must be a major shareholder, and shareholders have the right to audit the subsidiaries. The National Audit Office issued the Special Standards for Internal Auditing in China and the Provisions of the National Audit Office on Internal Auditing.

Provisions of the National Audit Office on Internal Audit Article 3 State organs, financial institutions, enterprises, institutions, social organizations and other units shall establish and improve the internal audit system in accordance with relevant state regulations.

The "enterprises and institutions" here include enterprises with parent-subsidiary structure.