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Interim Measures For The Central Internal Audit Management

Original Language Title: 中央企业内部审计管理暂行办法

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(August 23, 2004 State State-owned assets supervision Management Committee makes 8th, announced since August 30, 2004 up purposes) first chapter General first article for strengthening on State State-owned assets supervision Management Committee (following referred to country funding Board) perform funded people duties Enterprise (following referred to enterprise) of internal supervision and risk control, specification enterprise internal audit work, guarantees enterprise financial management, and accounting and production business meet national the legal regulations requirements, according to
    Interim regulations on State-owned assets supervision and administration of enterprises and the relevant State laws and regulations, these measures are formulated.
    Article enterprise internal audit work carried out and procedures apply.
    Enterprise internal auditing in these measures in article, refers to the internal audit based on relevant laws and regulations, accounting and the internal regulations to the enterprises and enterprises (units) of financial revenues and expenditures, budgets, financial statements, asset quality, management performance, as well as construction projects or activities related to economic reality, legitimacy and efficiency of supervision and evaluation.
    Fourth Enterprise shall, in accordance with the relevant provisions of the State, in accordance with the requirements of the internal auditing standards, carefully organized to do internal audit work, timely detection of problems and clarifying responsibility to correct irregularities, checks the effectiveness of internal control procedures, and guard against and defuse operational risks, maintain the normal production and operation enterprises, enhance the management level of enterprises, State-owned assets and increase their value.
    Article fifth State-owned enterprises according to law internal audit guidance and supervision.
    Chapter II sixth enterprise internal audit institutions shall, in accordance with relevant regulations of the State, establishment of independent internal audit function, with appropriate professional staff, establish a sound internal audit regulations, effective internal auditing work, and strengthen internal supervision and risk control. Article seventh State-holding companies and State-owned companies, should be based on improving corporate governance structure and complete the requirements of internal control mechanisms, an independent Audit Committee under the Board of Directors.
    Corporate members of the Audit Committee shall be familiar with finance, accounting and auditing expertise and have the operational capacity of the directors, including Chairman shall be held by outside directors.
    Eighth article Enterprise Audit Committee should perform following main duties: (a) considered Enterprise annual internal audit work plans; (ii) supervision enterprise internal audit quality and financial information disclosure; (three) supervision enterprise internal audit institutions head of appointment, proposed about views; (four) supervision enterprise social intermediary audit, institutions of hired, and replaced and paid paid; (five) review enterprise internal control program of effectiveness, and accept concerned of complaints; (six) other important audit matters.
    Nineth has not established a Board of Directors of the State-owned companies and State-owned enterprises should be in accordance with the requirements of strengthening financial supervision and perfect internal control mechanisms, according to the relevant regulations of the State, strengthening the leadership of internal audit, clarify responsibilities and strengthen internal audit, internal audit and internal control (discipline), the coordination of financial, personnel and other relevant departments.
    Article tenth enterprise internal audit internal audit work carried out according to relevant regulations of the State, directly to the Board of Directors (or Chief) responsible for the establishment of an Audit Committee of enterprises, internal auditors should accept the supervision and guidance of the Board.
    11th sub-corporate-owned enterprises shall be established in accordance with the relevant provisions of the internal audit function has been qualified full-time auditors shall be established.
    12th corporate internal auditors shall audit posts necessary for accounting, auditing and other professional knowledge and ability; the head of internal audit shall have corresponding qualification of professional technical titles.
    Third chapter internal audit institutions main duties 13th article according to national about provides, combined funded people financial supervision and enterprise work of need, enterprise internal audit institutions should perform following main duties: (a) developed enterprise internal audit work system, prepared Enterprise annual internal audit work plans; (ii) by enterprise internal division organization or participation organization Enterprise annual financial accounts of audit work, and on Enterprise annual financial accounts of audit quality for supervision;
    (Three) on national legal regulations provides not suitable or not provides must by social intermediary institutions for annual financial accounts audit of about content organization for internal audit; (four) on this enterprise and child enterprise of financial payments, and financial budget, and financial accounts, and assets quality, and business performance and other about of economic activities for audit supervision; (five) Organization on Enterprise main business sector head and child enterprise of head for term or regularly economic responsibility audit;
    (Six) Organization on occurred major financial exception situation of child Enterprise for special economic responsibility audit work; (seven) on this enterprise and child enterprise of infrastructure engineering and major technology, and overhaul, of project, and almost (pre) is, and accounts and completed delivered using for audit supervision; (eight) on this enterprise and child enterprise of material (labor) procurement, and products sales, and engineering tender, and foreign investment and the risk control, economic activities and important of economic contract, for audit supervision;
    (Nine) on this enterprise and child enterprise internal control system of sound sex, and rationality and effectiveness for check, and evaluation and views feedback, on Enterprise about business of business risk for assessment and views feedback; (10) on this enterprise and child enterprise of business performance and the about economic activities for supervision and evaluation; (11) on this enterprise annual payroll source, and using and settlement situation for check; (12) other matters.
    14th enterprise internal audit of the annual financial statement audit quality monitoring should be based on the internal division of responsibilities, based on the principles of independence, objectivity and impartiality to ensure enterprise financial management, accounting and production and operation comply with the requirements of the national laws and regulations. 15th article for guarantee Enterprise annual financial accounts report of real and full, enterprise internal audit institutions should according to SASAC related work requirements, on following special case of child enterprise organization for regularly internal audit work: (a) according to national about provides, involved national security not suitable social intermediary institutions audit of special child Enterprise; (ii) according to where national and the area legal provides, in outside for audit of outside child Enterprise; (three) national legal, and
    Regulations did not require principal intermediary enterprise internal audit units.
    16th enterprise internal auditing of enterprises and its management performance evaluation and related economic activities, management performance evaluation based on relevant policies.
    17th enterprise internal audit bodies should strengthen the social intermediary institutions to carry out this enterprise and its subsidiary financial auditing, assets evaluation and related business activities for authenticity and validity of the results of monitoring, and community supervision of intermediary recruitment, replacement and remuneration.
    18th related audit work of enterprise internal audit bodies should coordinate with external auditors and in accordance with the relevant provisions on external audits provide the necessary support and information. 19th article enterprise should according to national about legal regulations, perfect internal audit management regulations, guarantees internal audit institutions has perform duties by required of permission: (a) participate in Enterprise about business and financial management decision Conference, participation assist enterprise about business sector research developed and modified enterprise about regulations and urged implementation; (ii) check was audit units accounting books, and report, and voucher and site survey related assets, right to check out about production business activities, aspects of file, and Conference records, and Computer software, related information; (three) on and audit matters about of sector and personal for survey, and made related proved material; (four) on is for of serious illegal violations and serious loss waste behavior, can made temporary stop decided, and timely to Board (or Enterprise main head) report; (five) on May was transfer, and hidden, and tampered with, and destroys of accounting voucher, and accounting books, and statements and and economic activities about of information,
    Authorized by the heads of enterprises or the authority concerned may be sealed temporarily; (vi) mainly within the purview of the responsible person or authority in the management, shall grant the necessary treatment or punishment over the internal audit bodies.
    Fourth chapter program 20th enterprise internal audit internal audit work shall, in accordance with relevant State regulations, combined with the actual situation, develop annual audit work plan to make reasonable arrangements for internal audit work, and submitted to the heads of enterprises or the Audit Committee for approval.
    21st enterprise internal audit bodies should take fully into account the audit risks and internal management needs, develop project-specific audit plans, audit preparation. 22nd Enterprise implemented internal audit office shall audit the first 5 working days, to be served a notice of Audit audit unit.
    For special services that require surprise audit, audit auditor notice may be served.
    Audited units received an audit notice, should be ready to accept the audit would be ready. Article 23rd before the internal audit report, the auditor shall audit and audited exchange of views.
    Auditee disagrees with, shall, upon receiving the audit report within 10 working days from the date the written opinion; fails to put forward, as no objections.
    Article 24th audited when audit reports disagree and not orchestrated, set up an Audit Committee business, should the audit report together with the audited reported to the Audit Committee to handle them; enterprises that have not set up an Audit Committee shall audit report together with the audited company mainly responsible for the coordination. 25th reported to the Board of directors or mainly responsible for the examination of the report of the audit, internal auditors shall, according to the findings, given to the audited unit audit opinion ().

    Report to the Board of Auditors, mainly responsible for the coordination of audit reports, shall, in accordance with the Audit Committee, in charge of the validation view to auditees issued audit opinion ().
    Article 26th enterprise internal audit internal audit matters to have concluded, shall, in accordance with national archives and Records Administration provides for the establishment of the audit file.
    27th enterprise internal audit shall annually to the Board of Directors (or Chief) and the Audit Committee on internal audit summary report.
    28th enterprise internal audit on the main audit should conduct a follow-up audit of the project, supervise the auditees to acceptance of the audit opinion and on the implementation of decisions of the audit.
    Fifth chapter 29th enterprise internal audit internal audit work shall, in accordance with relevant regulations of the State and enterprise management requires effective internal audits and to strengthen internal oversight, correcting violations, avoid business risks.
    30th internal audit institution for violation of State laws and regulations timely reports and the internal management system, and put forward views on enterprise internal control management vulnerabilities found, suggestions for improvement in a timely manner.
    31st to be audited and relevant staff did not timely implementation of internal audit observations, business losses and waste, companies should investigate the relevant people; causing significant damage to the enterprise, should also be in accordance with the relevant provisions of the up level reflecting the situation in a timely manner.
    32nd article enterprise internal audit institutions following work matters should reported SASAC record: (a) Enterprise annual internal audit work plans and work summary report; (ii) important child Enterprise head and the enterprise financial sector head of economic responsibility audit report; enterprise internal audit work in the found of major illegal disciplinary problem, and major assets loss situation, and major economic case and the major business risk,, should to SASAC submitted special report.
    Article 33rd need finance controlling systems, internal auditors in accordance with the State-owned assets supervision on work requirements of enterprise and its child company of a major financial exception of special economic responsibility audit of the Organization, shall submit to the Commission the audit report.
    Article 34th enterprises to continuously improve the quality of internal audit internal audit bodies, and shall be subject to the SASAC, the national audit institution to quality inspection and assessment of internal audit.
    35th organization of internal audit institution shall, in accordance with the measures of internal audit work carried out, and the internal audit reports issued by the objective reality of responsibility.
    Article 36th in order to ensure the independence, objectivity and impartiality of the work of internal audit, businesses have a stake in matters of Internal Auditors and the audit should be avoided.
    37th the internal audit personnel shall strictly abide by the code of ethics for Auditors, adhere to the principle of objectivity and fairness, dedication, maintaining integrity, confidentiality, and shall not abuse, favoritism and reveal the secret, neglecting his duties.
    Article 38th when implementing internal audit, internal auditors shall be based on further investigation, inspection, sampling, and analytical review of audit methods, obtain sufficient, relevant and reliable audit evidence to support the audit conclusions and recommendation. 39th's Board of Directors (or Chief) should guarantee internal audit bodies and persons exercising their powers and performing their duties according to law; corporate functions within agencies shall cooperate with the internal audit work.
    No organization or individual may perform duties of internal audit personnel for retaliation.
    40th enterprises to conscientiously perform their duties, are loyal to their duties, adhere to principles, internal audit personnel have made outstanding achievements should be rewarded. 41st enterprises should ensure that internal audit the audit work necessary funding, and included in the annual financial budget.
    Internal audit personnel to participate in professional and technical qualification of the national organization for the harmonization of evaluation, employment and further education, the Enterprise shall be implemented in accordance with the relevant provisions of the State.
    42nd sixth chapter penalties for enterprises there is a serious breach of law and order in the country's financial and internal control procedures of serious defects, except in accordance with the regulations shall be investigated for criminal enterprise charge, Chief Accountant (or finance charge) and the related responsibilities of the Finance Department, and corresponding accountability for Corporate Audit Committee and internal audit personnel oversight responsibilities.
    Article 43rd for abuse of power, favoritism, dereliction of duty, reveal a secret internal audit personnel, disciplinary action by his employer in accordance with the relevant provisions of the State; a suspected crime, the law transferred to judicial organs for handling. 44th for retaliating against the internal audit personnel issues, enterprises should be corrected in a timely manner; a suspected crime, the law transferred to judicial organs for handling.
    Revenge by internal auditors have the right to report directly to the Commission.
    45th auditee personnel do not cooperate with the internal audit work, refused to audit or not to provide information, provided false information, the refusal to implement the audit conclusions, enterprises should be given disciplinary punishment suspected of a crime, the law transferred to judicial organs for handling.
    Seventh chapter supplementary articles article 46th all Central SOEs can be combined with the actual situation of the enterprise, formulate specific implementing rules.
    47th in each province, autonomous region, or municipality directly under the State-owned assets supervision and administration in accordance with the measures, combined with the related local area development regulations.
                                                          48th article of the rules take effect on August 30, 2004.