Rules
of Shenzhen Special Economic Zone on Internal Audit |
(Adopted
at the 97th Executive Committee of the Shenzhen Municipal
People' s Government on December
31, 1994. Promulgated
by Decree No.45 of Shenzhen Municipal People' s Government on
April 15, 1995) |
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Chapter
¢ñ General Provisions
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Article
1
In order to set up and perfect the system of internal audit,
strengthen the administration and supervision
on internal audit
units, improve operation and management, and increase economic
benefit, these rules
are formulated in accordance with the Audit
Law of the People' s Republic of China, combining with the actual
circumstances of Shenzhen Special Economic Zone (hereinafter
referred to as the special zone). |
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Article
2
"Internal audit" in these rules refers to a kind of economic
supervision, which is conducted by government
department,
state-owned financial institution, enterprise or institution
(hereinafter referred to as
the internal audit units) to examine,
verify and evaluate the authenticity, legality and beneficial
results of its own economic activities, or those of its
subordinate units according to relevant provisions of laws,
regulations and rules. |
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Article
3
The Audit Department of the People' s Government of Shenzhen
Municipality (hereinafter referred to
as the municipal audit
department) shall conduct professional direction and supervision
on internal
audit work. |
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Chapter¢ò
Internal Audit Institutions and Auditors
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Article
4 According
to the needs of internal management, the following units may
establish independent internal
audit institutions: |
(1)
government departments; |
(2)
state-owned financial institutions; |
(3)
joint-stock enterprises with the state-owned assets; |
(4)
state-owned group (head) companies and the companies directly
subordinate to them with more than
5 independent accounting units; |
(5)
state-owned institutions, whose financial revenue and expenditure
are relatively large; |
(6)
state-owned enterprises, whose financial revenue and expenditure
are large; |
(7)
other units that need to establish internal audit institutions. |
The
unit with relatively little internal audit business may appoint
full-time internal auditors. |
The
government-sponsored administrative institution, which wants to
set up an internal audit institution
or appoint full-time internal
auditors, shall report to the competent department for
establishment
of organizations at the same level for examination
and approval. |
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Article
5
The internal audit institutions and full-time internal auditors
shall accept the direct leadership
of the persons in charge of
their units, independently exercise the functions and powers of
internal
audit according to law, be responsible and report on
their work to the persons in charge of their units. |
The
superior internal audit institution shall direct its subordinate
unit in internal audit work. |
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Article
6 The
internal audit institution shall employ professional persons
suitable to its work. The person in
charge of the internal audit
institution shall have a middle or higher technical title of
relevant
major, such as auditing, accounting, operation and
management. Other working staff of the internal audit institution
shall possess the professional knowledge and ability suitable to
the audit work they engage in. |
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Article
7
The appointment or
dismissal of the person in charge of internal audit institution
shall be solicited
opinions from its superior internal audit
institution and be reported to the municipal audit department for
record. |
As
to the internal audit institution of joint-stock enterprise, group
(head) company with a board of
directors or subordinate company£¬its
person in charge shall be appointed or dismissed by the board of
directors. As to the internal audit
institution of group (head)
company without a board of directors, directly subordinate company
or other
unit, its person in charge shall be appointed or
dismissed by the main leading official of the unit. The post of
the person in charge of internal audit institution shall be kept
relatively stable. The person in charge
of internal audit
institution shall not be removed or replaced at random. |
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Article
8
The internal auditors shall audit according to law, be devoted to
their duties, be objective and just,
keep secrets, and shall not
abuse their powers or play irregularities for favoritism. |
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Article
9
The internal auditors shall be protected by law in performing
their functions and powers according
to law. No unit or individual
may retaliate against them. |
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Chapter
¢ó Supervision Issues and Powers of Internal Audit
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Article
10
The internal audit institution shall
carry out supervision through auditing to the following issues of
this unit and subordinate unit: |
(1)
the implementation of relevant financial and economic laws,
regulations, rules and systems; |
(2)
the implementation of operation guidelines, policies, rules and
systems laid down by its owning
unit; |
(3)
the authenticity and correctness of accounting materials and
economic information; |
(4)
the safety and integrity of state-owned assets, rights and
interests; |
(5)
the laying down and implementation of various operation schemes,
plans and budgets; |
(6)
the economic activities involving financial receipts and
expenditures, and economic benefits; |
(7)
the conclusion and fulfillment of economic contracts; |
(8)
the establishment, improvement and implementation of internal
financial system; |
(9)
the economic liabilities of contracted management or business
management under lease, and of the
person in charge leaving his
post; |
(10)
the use and beneficial results of the capitals and properties
invested in the joint venture, cooperative
venture or cooperative
project, and the conditions of using state-owned assets to acquire
mortgage
loan or providing warranty to other unit; |
(11)
the activities of making important decisions on operation; |
(12)
other audit matters that are handed over
by this unit' s main leading official or the superior internal
audit institution, or stipulated by
laws, regulations or rules. |
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Article
11
The internal audit institution has the following main functions
and powers: |
(1)
to examine the accounting statement, account book, credence,
capital and other property, and look
up in relevant documents and
materials; |
(2)
to investigate relevant matters in audit and demand for
evidentiary material; |
(3)
to make temporary decision to stop the activity violating
financial and economic laws or disciplines,
or the activity
causing loss or waste, after getting approval from the unit' s
person in charge; |
(4)
to put forward suggestions of investigating liability to the
person, who seriously violates the
financial and economic laws or
disciplines or causes great loss or waste; |
(5)
to take necessary temporary measures to the person, who obstructs
or disrupts the audit work, or
refuses to provide relevant
materials, after getting approval from this unit' s main leading
official,
and put forward suggestions of investigating liability
to relevant person; |
(6)
to put forward suggestions of improving management, increasing
beneficial results, correcting or
dealing with the activity
violating financial and economic laws or disciplines, and inspect
the implementation
of audit conclusion; |
(7)
to report important matters in audit work to the superior internal
audit institution and audit department. |
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Article
12
The internal audit unit may authorize the internal audit
institution to exercise relevant economic
powers within the scope
of its administrative authority. |
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Chapter
¢ôWorking Procedures of Internal Audit
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Article
13
The internal audit institution shall lay down the working plan of
internal audit according to the arrangements
of superior internal
audit institution and the municipal audit department in
combination with the specific
circumstances of this unit, and
implement the working plan after it is submitted to and approved
by
the person in charge of this unit. |
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Article
14
The internal audit institution shall serve an audit notice to the
audited unit before conducting audit.
The notice shall include the
following items: |
(1)
the scope, content, time and way of audit; |
(2)
the name list of the leader and other members of audit team; |
(3)
the requirements to the audited unit of cooperating in audit work. |
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Article
15
The internal auditors shall examining, collecting evidence,
investigating and analyzing according to
the audit items and
requirements of audit work, and may put forward improvement
opinions concerning
the found problems in audit to relevant unit,
department or person at any time. |
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Article
16
After the audit is finished, the internal audit institution shall
issue an audit report to the main
leading official of this unit. |
The
audit report shall include the following contents: |
(1)
the scope, content, time, way and relevant conditions of audit; |
(2)
the facts relevant to the audit matters; |
(3)
relevant laws, regulations, rules or policies, according to which
the audit is conducted; |
(4)
the audit conclusions, opinions and suggestions of settlement. |
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Article
17
After the audit is
finished, the internal audit institution shall draw up a written
audit decision if
it thinks necessary. When the main leading
official of this unit approves the audit decision, it shall be
sent in the name of the unit to the audited unit for
implementation. |
The
audited unit shall implement the approved audit decision. If the
audited unit does not agree with
the audit decision, it may
complain to the main leading official of the unit, to which the
internal
audit institution belongs, within 10 days from receiving
the audit decision. The main leading official shall deal
with the
complaint in time. The audit decision shall still be implemented
during the complaining period. |
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Article
18
The internal audit institution shall set up internal audit
archives, and keep them carefully and skillfully
according to
relevant regulations. |
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Article
19
In case that the internal audit institution undertakes the audit
matters assigned by the municipal
audit department or superior
internal audit institution, the audit report shall be submitted to
the
assigning unit for examination and approval. The assigning
unit shall make the audit conclusion or decision. |
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Chapter
¢õDirection and Supervision of the Audit Department to Internal
Audit
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Article
20 The
municipal audit department shall direct and supervise the internal
audit work of internal audit
unit according to relevant provisions
of laws, regulations, rules and these rules. The municipal audit
department shall lay down working procedures and standards of
internal audit, supervise and urge the internal
audit institution
to work strictly according to the working procedures and standards
of internal audit,
and promote the standardization and
institutionalization of internal audit. |
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Article
21
The municipal audit department shall set up the system of
on-the-job training to internal auditors
according to the needs of
internal audit work, carry out on-the-job training and assessment
to internal
auditors regularly or irregularly, and improve the
professional qualities of internal auditors. |
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Article
22
The municipal audit department may organize assessment, appraisal
through comparison to the internal
audit work, encourage and
reward the advanced unit of internal audit to promote the
development of
internal audit work. |
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Chapter
¢ö Encouragements and Punishments
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Article
23
The internal
audit institution, internal auditor, who gains great achievement
in work, shall be encouraged
and rewarded by the municipal audit
department, internal audit unit or superior internal audit unit. |
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Article
24
The internal audit institution, which plays irregularities for
favoritism or plays tricks in internal
audit work, shall be
ordered to make correction within a prescribed time limit by the
internal audit
unit or superior internal audit institution. The
person directly liable of the internal audit institution shall be
investigated for administrative responsibility. If his act
constitutes a crime, he shall be investigated
for criminal
responsibility by the judicial department according to law. |
The
internal audit organ, which causes economic losses to the audited
unit because of providing false
audit conclusion, shall bear the
liability of compensation, and may be imposed a fine of 10,000 to
50,000 yuan by the supervisory department. |
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Chapter
¢÷ Supplementary Provisions
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Article
25
These rules shall be applicable to the internal audit of
collectively-owned enterprises referentially. |
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Article
26 These
rules shall go into effect as of the date of promulgation. |
The Opinions on Further Strengthening the Internal Audit Work,
which is issued by the Audit Bureau of Shenzhen Municipality, and
transmitted after approval by the People'
s Government of
Shenzhen Municipality on October 22, 1987, shall be annulled
therefrom. |