Key Benefits:
(The 23th ordinary meeting of the People's Government of the Republic of Korea for consideration by the People's Government of 11 January 2008, No. 129 of the People's Government Order No. 129 of 1 March 2008) Article 1, in order to regulate internal audit conduct, establish and maintain an internal audit system, enhance internal audit oversight, develop this provision in the light of the National People's Republic of China Audit Act and the relevant legislation. Article II defines internal audit as an act of independent, objective monitoring and evaluation by an internal audit body or by an internal auditor of the actual, legitimate and effective performance of the unit and its affiliated units, financial and other economic activities. Article 3. Internal audit and guidance, oversight activities for internal audit in national organs, financial institutions, business organizations, social groups and other units within the province's executive area are applicable. Article IV. Internal audit should be guided by the principles of independence, objectivity and impartiality and conduct audit work in accordance with internal audit procedures. Article 5. Units and individuals shall not interfere with, reject and impede the implementation of audit activities by internal auditors in accordance with the law, and shall not combat, reprisals, trap internal audit personnel. Article 6 (i) Organizing the implementation of relevant legislation and the development of an internal auditing system; (ii) Guidance on the internal audit of units subject to audit oversight by the auditing authority; (iii) Oversight of the duties of internal audit bodies and internal auditors; (iv) Training of internal audit personnel to assess the quality of internal audit work; (v) To guide, monitor and manage the functions of the Internal Audit Association in accordance with its laws and regulations; (vi) Other responsibilities under legal regulations. Article 7. Internal audit associations established by law are self-regulatory organizations of internal audit bodies and internal audit personnel, and are legal entities of social groups to perform their duties in accordance with the laws and regulations. Article 8. The Government of the above-mentioned population at the district level and its relevant departments shall grant recognition and incentives to internal audit bodies or internal auditors who make significant achievements in the internal audit. Article 9 State organs, financial institutions, business organizations, social groups and other units should establish a sound internal audit system in accordance with the relevant provisions of the State. The following units should establish an independent internal audit body: (i) Enterprises with large medium-sized and national control units or State-owned assets; (ii) Upholding companies; (iii) Financial institutions such as banks, insurance, securities; (iv) Building units for national large-scale construction projects; (v) Other units provided for in the legislation. Article 11. Internal audit bodies or internal audit personnel shall operate under the authority of the main unit or authority. The main head or authority of the unit should support internal audit work, maintain the relative stability of the internal audit personnel and guarantee that internal audit agencies and internal audit personnel carry out their duties in accordance with the law. Article 12 Internal audit personnel should have the expertise and operational capacity to be adapted to their audit work and implement job qualification management systems and follow-up education systems. The assessment and appointment of the professional technical qualifications of the internal auditor is carried out in accordance with the relevant national provisions. Article 13. Internal audit personnel shall perform their duties in accordance with the law, in compliance with the Code of Ethics and Internal Audit. Article 14. Internal audit personnel shall be avoided by conducting audit matters, in the interest of the auditor or auditing. The costs necessary for the performance of the duties of an internal audit body should be included in the unit's financial budget and assured. Article 16: The internal audit body performs the following duties, as required by the principal head or authority of the unit: (i) Audit of financial and income and expenditure and related economic activities; (ii) Audit the management and use of extrabudgetary funds within the budget; (iii) An audit of the economic responsibility of the establishment and head of the unit within this unit; (iv) Audit of fixed-term asset investment projects; (v) Evaluation of the soundness and effectiveness of the internal control system and risk management; (vi) Audit of economic management and effectiveness; (vii) Other auditing matters provided for in the legislation. Article 17 Internal audit bodies or internal audit personnel may, in accordance with the unit's provisions, carry out an auditing system for related matters of economic activity. The internal audit body or the internal auditor may, with the consent of this unit, engage experts in internal auditing or entrust social audit organizations or other intermediary agencies with internal audit business matters. Article 19: The main head or authority of the unit shall establish the following provisions to guarantee the authority of the internal audit body or internal audit personnel: (i) Requested the timely delivery of production, operation, financial and balance-of-payment plans, budget performance, accounts, accounting statements and other related documents, information, etc.; (ii) To participate in meetings of this unit and to convene meetings related to audit matters; (iii) Participation in the study of the relevant regulations and the formulation of internal audit regulations, which are carried out by the unit after the publication; (iv) Examination of information, documentation and on-site surveys on production, operation and financial activities; (v) Inspection of relevant computer systems and their electronic data and information; (vi) Conduct investigations into relevant units and individuals on issues related to audit matters and obtain evidence; (vii) To take a temporary halt to the ongoing serious violations of the law and the serious loss of waste; (viii) To transfer, conceal, adapt, destroy accounting vouchers, accounting books, accounting statements and information relating to economic activities, which are authorized by the principal head of the unit or authority; (ix) Recommendations to correct, address violations and improve economic management and improve economic efficiency; (x) Provision of criticism or recommendations for accountability for violations and for units and persons causing damage. Article 20, with the consent of the unit, should result in an open audit by an internal audit body or internal auditor. Article 21, which is not in line with internal audit work, refuses to audit or provide information, provides false information, rejects the implementation of audit findings or reprisals against internal audit personnel, shall be dealt with in a timely manner by the principal head of the unit or the authority; and is suspected to have been transferred to the judiciary. In article 22, internal audit personnel misuse their functions, favour private fraud, disclose secrets, which are dealt with by the unit in accordance with the relevant provisions, and are suspected of committing crimes to be transferred to the judiciary in accordance with the law. Article 23 of the present Article states that “constitutional units” include units with administrative affiliation, this unit, or lead-up units. Article 24 |
