415 Internal Audit Measures of Shenzhen Municipality 深圳市内部审计办法

　　(Decree No. 217 of Shenzhen Municipal People’s Government Promulgated on April 19, 2010)

　　 

　　Chapter One General Principles

　　 

　　Article 1 In order to strengthen the internal audit, stimulate the economic management, improve the economic efficiency and maintain the economic order, these measures are formulated, according to the Audit Law of the People’s Republic of China and other laws and regulations and in light of the actual situation of Shenzhen.

　　 

　　Article 2 The term, internal audit, refers to the acts for the independent supervision, evaluation and consultation on the authenticity, legitimacy and efficiency of the budget, financial revenue and expenditure and other economic activities, and on the perfectness and effectiveness of the internal control and risk management within the unit and its subordinate unit in order to improve the economic management and achieve the economic objectives.

　　 

　　Article 3 The units that belong to the supervision objects of the audit organ shall establish and perfect the internal audit system and carry out the internal audit t work.

　　 

　　Other units beyond those mentioned above are encouraged and supported to establish and perfect the internal audit system and carry out the internal audit work.

　　 

　　Article 4 Shenzhen municipal audit organs at all levels (hereinafter referred to as the audit organ) shall guide and supervise the internal audit work according to the law.

　　 

　　    The audit organ shall perform the following duties in guiding and supervising the internal audit work:

　　 

　　(1) to establish the internal audit ancillary system according to the laws, regulations and the relevant provisions of the superior audit organs;

　　 

　　(2) to supervise and urge the supervision object to set up the internal audit institution and man it in accordance with the provisions, and establish and perfect the internal audit system;

　　 

　　(3) to inspect and evaluate the establishment and perfectness of the internal audit system, and the development of the internal audit work in the units that belong to the supervision objects of the audit organ;

　　 

　　(4) to summarize the internal audit work, popularize the advanced experience, and give commendations and rewards to those units and individuals that have made conspicuous achievements in the work;

　　 

　　(5) to safeguard the legitimate rights and interests of the internal audit organs and the internal audit staff;

　　 

　　(6) other duties prescribed by laws and regulations.

　　 

　　Article 5 The competent organs or units shall, within the scope of their function and power, perform the following main duties in the leadership, guidance and supervision of the internal audit in their respective industry and system:

　　 

　　(1) to establish the internal audit ancillary system for the respective industry and system according to the laws and regulations and the rules of the audit organ and the superior competent organ or the unit concerned;

　　 

　　(2) to supervise and urge the subordinate units to set up the internal audit institutions and man them in accordance with the provisions, and establish and perfect the internal audit system;

　　 

　　(3) to summarize the internal audit work, popularize advanced experience, and give commendations and rewards to those units and individuals in the system that have made conspicuous achievements in the work;

　　 

　　(4) to safeguard the legitimate rights and interests of the internal audit institutions and the internal audit staff;

　　 

　　(5) other duties prescribed by laws and regulations.

　　 

　　Article 6 Shenzhen Internal Audit Association shall, in accordance with the relevant provisions, establish the self-regulating trade management system for the internal audit institutions and the internal auditors, and provide the services and accept the audit guidance and supervision.

　　 

　　Chapter Two  Organization and Personnel

　　 

　　Article 7 With regard to the establishment of the independent internal audit institutions as provided for by the laws and regulations, their provisions thereof shall be followed.

　　 

　　The other units can establish independent internal audit institutions according to the needs of the work. If the unit has no conditions to establish an independent internal audit institution or employ full-time internal auditors, it may authorize the other similar internal institutions to fulfill the internal audit responsibilities, or a social audit institution can be employed to assist their internal audit when necessary.

　　 

　　Article 8 The institutions or their personnel, which fulfill the responsibilities of the internal audit under the direct leadership of the main responsible person or authority shall independently exercise the functions of internal audit, shall be held responsible for and report to the principal person in charge of the unit or the authority and be not interfered by any other departments or individuals.

　　 

　　The unit can establish an audit committee with a comptroller general in accordance with relevant provisions or its needs.

　　 

　　Article 9 The internal auditors shall have the professional knowledge and ability required to engage in internal audit work, and take part in the internal audit professional training or the regular follow-up education.

　　 

　　Article 10 If any subordinate unit appoints or removes a person to be in charge of its internal audit institution, it shall take advice from the superior unit in advance for approval.

　　 

　　Article 11 The funds the internal audit institution needs to perform its duties shall be included in the unit budget and guaranteed.

　　 

　　Article 12 The internal auditors shall perform their duties according to law and comply with the profession standards.

　　 

　　The internal auditors shall not hold concurrent posts of management control or accounting work that may affect their performance of their duties according to the law.

　　 

　　They shall avoid handling the matters which conflict with their interests when implementing the internal audit.

　　 

　　Chapter Three  Duties and Limit of Authority

　　 

　　Article 13 The internal audit shall perform the following duties:

　　 

　　(1) to audit and supervise the compliance with relevant laws, regulations and rules and the implementation of the plan, budget, program and contract in the unit and its subordinate units in the process of operation and management.

　　 

　　(2) to audit and supervise the budget, financial revenue and expenditure, assets, liabilities, profit and loss and owner’s equity in the unit and its subordinate unit;

　　 

　　(3) to examine and evaluate the operation, management and beneficial results in the unit and its subordinate units;

　　 

　　(4) to carry out the special audit and investigation;

　　 

　　(5) to audit and supervise the financial responsibilities of the principal persons in charge of the unit internal institutions and the subordinate units in their term of office;

　　 

　　(6) to examine, evaluate and consult about the perfectness and effectiveness of the internal control and risk management in the unit and its subordinate units;

　　 

　　(7) to audit and supervise the fixed assets investment projects in the unit and its subordinate units;

　　 

　　(8) to inspect and guide the internal audit work of the subordinate units;

　　 

　　(9) to deal with the related audit matters assigned by the principal person in charge of the unit, the authority and the superior internal audit institution;

　　 

　　(10) to deal with the related audit matters such as query and verification assigned by other audit organs;

　　 

　　(11) other duties prescribed in laws, regulations, and rules.

　　 

　　Article 14 The institutions or personnel performing the internal audit duties have the following limits of authority:

　　 

　　(1) to require the audited object to provide in time the relevant plan, budget and final accounts, financial and accounting information, bidding and project settlement data such as contracts, statistical reports, meeting minutes and other relevant information;

　　 

　　(2) to attend the relevant meetings in the unit and its subordinate units and hold meetings concerned with the audit matters;

　　 

　　(3) to examine the financial, accounting and economic activity data and files and the computer management information system and relevant electronic data related to the audit, and carry out the on-the-spot investigation of the material objects;

　　 

　　(4) to carry out investigations and inquiries of the relevant units and individuals about the related audit issues according to the law to obtain the relevant evidence materials;

　　 

　　(5) to make rectification and handling suggestions for the matters in the violations of laws and regulations in the economic activities, improve the management and put forward suggestions for relevant liabilities;

　　 

　　(6) to have the right to stop the illegal acts in the economic activities, and if it is refused, report to the principal person in charge of the unit or the authority to stop them in time;

　　 

　　(7) to seal up the data or assets that may be transferred, concealed, tampered and destroyed such as the relevant accounting information related to the economic activities after reporting to the principal person in charge of the unit or the authority for approval;

　　 

　　(8) to entrust the relevant social audit institution for audit work according to the needs, participate in the recruitment of the related social audit institution, and inspect and evaluate the work quality of the selected social audit institution;

　　 

　　(9) to put forward proposals of giving concerning commendations and awards to the principal persons in charge of the unit and the authority in the internal institutions and subordinate units for those collectives and individuals, who strictly abide by the financial regulations and have made economic benefits and remarkable outstanding contributions;

　　 

　　(10) other limits of authority granted by laws, regulations, rules and the principal person in charge of the unit or the authority.

　　 

　　Article 15 The internal audit institution and the personnel shall perform their duties according to the law, and the audited object shall cooperate, and may not refuse or impede them.

　　 

　　If the audit institution needs to query the audited object about the account in a financial institution or there is evidence to prove that the audited object have the public funds deposited his or her own account, the audited object shall cooperate with the inquiry and provide supporting materials when the internal audit in being carried out.

　　 

　　Article 16 The principal person in charge of the unit or the authority shall, in the scope of its management, grant the internal audit institution the necessary handling rights.

　　 

　　Article 17 The internal audit results shall serve as the references for the assessment, rewards and punishment, and appointment and removal of the internal institutions and persons in charge.

　　 

　　Chapter Fourth   Work Procedures

　　 

　　Article 18 The internal audit shall implement the audit project plan management and formulate the annual audit plan. The annual audit plan shall be implemented after being reported to the principal person in charge of the unit or the authority for approval.

　　 

　　Article 19 The internal audit institution shall determine the audit projects according to the annual audit plan, and establish an audit team to implement the audit according to the audit projects. The audit team shall be consisted of no less than two members.

　　 

　　Article 20 The audit team shall prepare audit programs, which shall be reported to the internal audit institution for approval.

　　 

　　Before implementing the audit, the internal audit institution shall serve an audit notice to the audited object. The institution may serve the notice while implementing the audit for special audit issues.

　　 

　　Article 21 The audit team shall, according to the audit plan, implement the audit, obtain the audit evidence, and prepare the audit working papers.

　　 

　　Article 22 At the end of the audit, the audit team shall develop the audit conclusion and suggestions by verified audit evidence, prepare the audit report, and take advice from the audited object.

　　 

　　If the audited object holds an objection to the audit report, the audit team shall study, verify, and revise the audit report when necessary.

　　 

　　The audit team will submit the audit report together with the audited object feedback to the internal audit institution for review.

　　 

　　Article 23 The internal audit institution shall review the first draft of the audit report, and report it to the principal person in charge of the unit or the authority for examination and approval, and then the formal audit report is formed and served on the audited object.

　　 

　　The audit report shall come into effect as of the date when it is served on the audited object.

　　 

　　Article 24 The audited object shall implement the relevant comments and suggestions in the audit report, and feed back the implementation to the internal audit institution within the prescribed time period.

　　 

　　If the audited object holds some objection to the audit report, it may complain to the principal person in charge of the unit or the authority, who shall accept it.

　　 

　　Article 25 The internal audit institution may, when necessary, carry out the follow-up audit to inspect the audited object’s implementation of the audit report, and submit the follow-up audit report to the principal person in charge of the unit or the authority.

　　 

　　Article 26 The unit shall establish and improve the internal audit file management system, and keep the internal audit records safe according to the relevant provisions.

　　 

　　Article 27 The internal audit institution shall submit the audit report of the audit matters that the audit organs or superior audit institutions assign to those that assign them for examination and approval, and the assigned units shall then make the audit conclusions or decisions.

　　 

　　Article 28 Other internal audit procedures shall be implemented in accordance with the China’s Internal Audit Standards.

　　 

　　Article 29 The units that belong to the supervision objects of the audit organs shall, according to the provisions, submit the internal audit work plan and work summary, statistics to their superior units and the audit organs.

　　 

　　The audit organs and the relevant administrative organs can use the internal audit results in carrying out the work.

　　 

　　Chapter Five  Liability Investigation

　　 

　　Article 30 If the audited object or the relevant responsible person performs any of the following acts, he or she shall be ordered to correct by the principal person in charge of the unit or the authority; if refusing to make corrections, the relevant person liable shall be dealt with by law in accordance with the relevant provisions; if suspected of a crime, he or she shall be transferred to the judicial organ for investigation:

　　 

　　(1) resorting to deceit; concealing the truth; transferring, concealing, tampering, destroying, refusing or delaying to provide the relevant documents and data;

　　 

　　(2) obstructing and resisting the internal audit staff in exercising their functions and powers;

　　 

　　(3) refusing to perform the audit decision;

　　 

　　(4) retaliating against, slandering, or framing up the internal auditors or the informants;

　　 

　　(5) violating the laws, regulations and rules and performing other related acts.

　　 

　　Article 31 If the internal audit personnel perform any of the following acts, they shall be dealt with in accordance with the law by their unit or other competent organs in accordance with the relevant provisions; if suspected of a crime, they shall be transferred to the judicial organ for investigation:

　　 

　　(1) neglecting their duties, and thereby causing serious consequences;

　　 

　　(2) using their powers to seek personal gains;

　　 

　　(3) resorting to deceit, playing favoritism and committing irregularities, concealing identified problems or providing false audit reports;

　　 

　　(4) leaking state secrets and commercial secrets of the audited object;

　　 

　　(5) violating the laws, regulations, and rules, and performing other related acts.

　　 

　　Article 32 If the principal person in charge of the unit or the related responsible person in the authority concerned performs any of the following acts, the competent organs shall, in accordance with the law, deal with he or her in accordance with the relevant provisions; if suspected of a crime, he or she shall be transferred to the judicial organ for investigation:

　　 

　　(1) retaliating against, slandering, or framing up the internal auditors or the informants;

　　 

　　(2) inspiring, instigating, forcing the internal audit institution or the internal audit staff to issue audit reports in violation of laws and regulations;

　　 

　　(3) not in time stopping or preventing the identified acts that are damaging the national interests and the interests of the units concerned and thus result in serious harm and loss;

　　 

　　(4) violating the laws, regulations, and rules, and performing other related acts.

　　 

　　Chapter Six  Supplementary Provisions

　　 

　　Article 33 The term in these measures, the principal person in charge of the unit, refers to the chief executive of a state organ or the legal representative of a corporate body.

　　 

　　The term in these measures, the authority, refers to the institution that exercises the decision-making power of a corporate body according to the law.

　　 

　　The term in these measures, the audited object, refers to the subordinate unit, the internal organization and any individual in it.

　　 

　　Article 34 The present measures shall be implemented as of May 20, 2010.

　　 

　　The Internal Audit Measures of Shenzhen Special Economic Zone (Decree No. 45 of Shenzhen Municipal People’s Government) promulgated on April 15, 1995 shall be abolished at the same time.