Shenzhen Internal Audit Approach

Original Language Title: 深圳市内部审计办法

Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/dfzfgz/201009/20100900264151.shtml

Shenzhen internal audit approach

    (April 19, 2010 Shenzhen Municipal People's Government announced order No. 217, come into force on May 20, 2010) Chapter I General provisions

    First in order to strengthen the internal audit work for economic management, improving economic efficiency, maintain the economic order, in accordance with the People's Republic of China Audit Act and other laws and regulations, Shenzhen practice, these measures are formulated.

    II internal audit in these measures refers to independent monitoring, evaluation and consulting the units and departments of financial revenue and expenditure, financial revenues and other economic activities of real, legitimate and effective and sound internal controls, risk management, effectiveness, and to improve economic management, achieving the goal of economic behavior.

    Article, belongs to the audit object audit organs according to law, the unit shall establish an internal auditing system, the internal audit work carried out.

    Encourage and support auditing auditing objects other than the units establish the internal audit system, internal audit work carried out.

    Article fourth Shenzhen auditing organs at all levels (hereinafter referred to as audit institutions) shall conduct operational guidance on internal audit and oversight.

    Of audit institutions on instructing and supervising internal audit responsibilities:

    (A) based on the relevant provisions of the laws, regulations and auditing organs at higher levels, and develop an internal audit system;

    (B) urged auditing object according to the rules established internal audit function, with internal audit personnel, establish a sound internal audit system;

    (C) on the object of the audit office audit units establish the internal audit system for inspection, evaluation and internal audit work;

    (D) in summary, the promotion of internal audit experience, the results of internal audit work units and individuals in accordance with the regulations give commendations and awards;

    (E) to protect the legitimate rights and interests of internal audit and internal audit;

    (Vi) other duties stipulated by laws and regulations.

    Article fifth competent authorities or units within the scope of its terms of reference, direction, guidance, supervision of the industry, the main responsibilities of the internal audit work:

    (A) according to the laws, regulations and auditing organs and competent departments or units of the relevant provisions, development of the industry, the system of the internal audit system;

    (B) urge the unit established pursuant to the provisions of the internal audit organizations, equipped with internal auditors, internal audit, establish and improve the internal audit system;

    (C) summary, promotion of advanced experience of the work of the internal audit, internal audit of the system of achievements in their work units and individuals in accordance with the regulations give commendations and awards;

    (Iv) to protect the legitimate rights and interests of internal audit and internal audit;

    (E) other duties stipulated by laws and regulations.

    Shenzhen Institute of internal auditors in accordance with the relevant provisions of article sixth, to the city's internal auditing agency industry self-regulation and internal audit personnel management and provision of services, accept the guidance, supervision and auditing departments.

    Chapter II Organization and personnel

    Seventh law and regulations should establish an independent internal audit bodies, from its provisions. Other units in accordance with the needs, the establishment of an independent internal audit function.

    Do not have to set up an independent internal audit institution or the full-time internal auditors criteria may be authorized organs carry out internal audit responsibilities of the unit and, if necessary, may appoint a social audit agencies to assist the work of the internal audit unit.

    Eighth performance of the internal audit function under article body or person in the head of the main unit or authority under the direction of, according to the independent exercise of the internal audit mandate, head of the main unit or authority are responsible and report on their work, free from interference by any other Department or individual.

    Unit or can be based on the relevant provisions, establish an Audit Committee, with Chief Auditor.

    Nineth internal audit of internal auditors shall meet the required professional knowledge and ability, participate in internal audit professional training and receive continuing education on a regular basis.

    Tenth subordinate unit heads of internal audit bodies of the appointment and removal shall first seek the views of the parent unit.

    11th internal audit requirements for performing their duties, shall be included in the budget of the unit and guarantees.

    12th internal auditors should perform their duties according to law, compliance with industry standards.

    Internal Auditors shall not concurrently or may affect their duties according to law or financial management, the implementation of internal audit, and audit or audit-related matters has an interest should be avoided.

    Chapter III responsibilities and authorities

    13th the internal audit shall perform the following duties:

    (A) of the units and their subordinate units in operation and management process comply with the relevant laws, regulations, rules, and the implementation of planning, budgeting, program monitoring audits, contract, etc.

    (B) of the units and their subordinate units financial income and expenses, financial income and expenditure, assets, liabilities, profits and losses, the owner's equity audit;

    (C) of the units and their subordinate units operate, manage, review and evaluate effectiveness;

    (Iv) on the special audit investigation;

    (E) to this unit within the Agency and the units in charge of economic responsibility audit and supervision;

    (Vi) of the units and their subordinate units internal control review of the integrity, effectiveness and risk management, evaluation and consulting;

    (VII) of the units and their subordinate units of fixed asset investment projects for audit and supervision;

    (VIII) to check the unit of internal audit work and guidance;

    (I) go through the heads of the main unit or authority and the parent account audit-related matters assigned by the internal audit;

    (10) management audit institutions undertake inquiries, verification of audit issues;

    (11) other duties stipulated by laws, rules and regulations.

    Article 14th discharge internal audit responsibilities of the institutions or persons, that has the following permissions:

    (A) request the auditee to provide plans, budgets and final accounts, financial and accounting information, bidding and settlement information, contract, statistical reports, minutes of meetings, and other relevant information;

    (Ii) participation in the relevant meetings of the units and their subordinate units, held meetings with the audit-related matters;

    (C) reviewing financial, accounting and economic activity data, files, and associated with audit relating to the content of computer management information system and electronic data, real scene investigation;

    (D) issues relating to audit matters, according to law to the relevant units and individuals to carry out investigations and inquiries, obtain the relevant supporting documents;

    (E) for illegal economic activities, illegal acts corrective advice, opinions, and improve management and make recommendations for holding those responsible accountable;

    (F) the ongoing illegal economic activities, illegal behavior, power to stop, stop the invalid, and promptly report to the heads of the main unit or authority to stop;

    (VII) may be transferred, concealed, tampered with, destroys information on financial accounting and related economic activities or assets, approved by the head of unit or authority, be temporarily sealed;

    (H) in accordance with the needs, commissioned the social audit Audit Agency, participating in the selection of relevant social auditing Agency and the selection of the quality of social audit agency review and assessment;

    (IX) for internal bodies and their subordinate units of the unit in strict compliance with the financial regulations, significant economic benefits and contributions of both collective and individual, to place the main heads or the authority to make recommendations for commendations and awards;

    (J) the laws, rules and regulations and heads of unit or authority to grant additional permissions.

    15th discharge internal audit responsibilities of the institutions or persons shall exercise his powers, the auditee should cooperate, and may not refuse or impede.

    Implementing internal audit, needs to query the auditee in the financial institution's account or there is evidence that the auditee to store money in his own name, the auditee should cooperate with the inquiry and provide evidence.

    16th head of unit or within the scope of authority in the management of permissions, granted power of Internal Auditors the necessary processing.

    17th internal audit results should be used as appraisal, reward and punishment, appointment and dismissal of the internal institutions and heads of unit basis.

    The fourth chapter procedures Article 18th management of internal audit should carry out an audit plan to prepare annual audit plans.

    Annual audit plans submitted to the main unit in charge or the authority for approval. Article 19th institution determined in accordance with the annual audit plan of the internal audit audit and audit project audit team conducting audits.

    Audit team members shall not be less than 2.

    20th the audit team should prepare audit programmes, approved by the internal audit implementation. Before implementing audit, internal auditors shall audit notice served to the auditee.

    Special auditor engagement can be served.

    21st audit teams should be based on the implementation of the audit program audit, obtaining audit evidence, preparing audit working papers.

    22nd after the conclusion of the audit, the audit team should be verified based on the audit evidence, forming audit conclusions and recommendations, preparation of the first draft of the audit report, seek the audited object.

    Dispute the auditee on the audit report, the audit team should conduct research, verify and, if necessary, shall modify the draft audit report.

    Audit team to provide feedback on draft audit report together with the audited object's comments submitted to the internal audit review.

    23rd internal auditors to review the draft audit report, and reported to the head of the main unit or authority for approval, the formal audit report, served on the audit object.

    Audit report since being served on the audit date of entry into force of the object.

    24th the auditee should implement related observations and recommendations of the audit report, and to the internal audit function within the prescribed implementation feedback.
The auditee disagrees with the audit report, you can appeal to the heads of the main unit or authority, head of unit or authority shall be accepted.

    25th follow-up audit internal auditing agencies may, when necessary, and check the implementation of the auditee on the audit report, and submitted to the heads of the main unit or authority audit report.

    26th unit shall establish an internal audit file management system, and keep archives of internal audit in accordance with the relevant provisions.

    27th internal audit contractors audit institutions or parent unit internal audit matters assigned by the auditor's audit report, should be submitted to the assigned units of the validation and audit findings, or decision by the assigned by the unit.

    28th other internal audit procedures, in accordance with the implementation of China's internal auditing standards.

    Article 29th audit unit shall, in accordance with the regulations of the auditing object to the parent unit and audit institutions shall submit the internal audit work plan and work summary and statistical reports.

    Audit bodies and the relevant administrative departments in carrying out its work, can take advantage of internal audit results.

    The fifth chapter liability

    30th the auditee or those responsible have one of the following, by the head of the main unit or authority shall order rectification refuses, in accordance with the relevant provisions of the relevant person liable according to law; a suspected crime, law transferred to judicial organs for handling:

    (A) fraud, concealing the truth, transfer, concealment, distortions, destroys or refuses or delays in providing the relevant documents and materials;

    (B) obstruct, resist internal auditors exercise of authority;

    (C) refused to implement decisions of the audit process;

    (D) strike, retaliation, defamation, against internal auditors or whistle-blowers;

    (E) other circumstances as violations of laws, rules and regulations.

    31st internal auditors shall have one of the following from the unit or other authority in accordance with the relevant provisions of the law dealing with; a suspected crime, law transferred to judicial organs for handling:

    (A) the negligence causing serious consequences;

    (B) using his power for personal gain;

    (C) fraud, favoritism and hide problems or provide false audit reports identified;

    (D) disclose State secrets, commercial secret of the auditee;

    (E) other circumstances as violations of laws, rules and regulations.

    Article 32nd Chief or the responsible authority has one of the following situations, dealt with by the authority in accordance with the relevant provisions of the law; a suspected crime, law transferred to judicial organs for handling:

    (A) strike, revenge, against internal auditors or whistle-blowers;

    (Ii) incite, instigate, or force the internal auditors or internal auditors issued in violation of laws and regulations of the audit report;

    (C) to detect is hurting the country and the interests of, do not stop or failure to stop causing significant damage and loss;

    (D) other circumstances as violations of laws, rules and regulations.

    The sixth chapter supplementary articles

    Article 33rd units primarily responsible in these measures refers to the State's Chief Executive or any other legal person the legal representative of the organization.

    Authority mentioned in these measures refers to the corporate decision-making bodies according to the law.

    Audited subjects mentioned in these measures refers to subordinate units, equipped with institutions and individuals.

    34th article of the measures introduced on May 20, 2010. Released on April 15, 1995, the implementation of the rules of Shenzhen Special economic zone on internal audit (Shenzhen Municipal People's Government, the 45th) repealed simultaneously.