Basic principles of internal audit

Chapter I General Provisions

Article 1 In order to standardize the internal audit work, clarify the responsibilities of internal audit institutions and personnel, and improve the quality of internal audit work, these Standards are formulated in accordance with the Audit Law of People's Republic of China (PRC), the Regulations of People's Republic of China (PRC) on Internal Audit and relevant laws and regulations.

Article 2 The term "internal audit" as mentioned in these Standards refers to an independent and objective supervision and evaluation activity within an organization, which promotes the realization of organizational objectives by checking and evaluating the authenticity, legality and effectiveness of business activities and internal control.

Article 3 These Standards are applicable to the internal audit institutions and personnel of various organizations and all their audit activities.

Chapter II General Policy

Article 4 General standards refer to the establishment of internal audit institutions, their functions and powers, the basic qualifications and professional requirements that internal auditors should have.

Article 5 The establishment of an internal audit institution shall consider the organizational nature, scale, internal governance structure and relevant laws and regulations, and be equipped with a certain number of internal auditors.

Article 6 An internal audit institution shall establish a strict internal quality control system and actively understand and participate in the construction of the organization's internal control system.

Article 7 Internal auditors should have professional knowledge and ability, be familiar with the business activities and internal control of their own institutions, and maintain this professional ability through continuing education.

Article 8 Internal auditors shall abide by professional ethics and perform audit business with due care.

Article 9 Internal audit institutions and personnel shall maintain independence and objectivity, and shall not participate in any actual operation and management activities of the audited entity.

Article 10 Internal auditors should have basic interpersonal skills and be able to communicate effectively with others in an appropriate way.

Chapter III Operation Guide

Eleventh operating norms are the code of conduct that internal audit institutions and personnel should follow in the stages of audit planning, audit preparation and audit implementation.

Twelfth internal auditors in the audit process, should fully consider the importance and audit risk.

Thirteenth internal auditors should consider the risks of the organization and the needs of management, formulate audit plans, arrange audit work reasonably, and report to the competent leader for approval before implementation.

Fourteenth internal auditors before the implementation of the audit, should be delivered to the audited units in audit notice, and make the necessary audit preparations.

Fifteenth internal auditors should thoroughly investigate and understand the situation of the audited entity, and test the authenticity, legitimacy and effectiveness of its business activities and internal control.

Article 16 Internal auditors can use audit methods such as discussion, inspection, sampling and analysis procedures to obtain sufficient, relevant and reliable audit evidence to support audit conclusions and audit recommendations.

Seventeenth internal auditors should actively use computers to assist the audit process. Audit under the computer information system should not change the objectives and scope of the audit plan.

Article 18 Internal auditors shall record the audit evidence, audit conclusions and audit suggestions collected and evaluated in the audit working papers.

Chapter IV Reporting Standards

Article 19 Reporting standards are the code of conduct that internal auditors should follow when reflecting audit results and issuing audit reports, and when the person in charge of internal audit approves and submits audit reports.

Twentieth internal auditors shall issue an audit report after the audit. The preparation of internal audit report must be based on the audit results, and be objective, accurate, clear, complete and constructive.

Article 21 The internal audit report shall explain the audit purpose, scope, conclusions and suggestions, and may include the opinions of the person in charge of the audited entity on the audit conclusions and suggestions.

Article 22 The internal audit report shall state that it shall be handled in accordance with the internal auditing standards of China. If it is not handled in accordance with the standards, the audit report shall explain and explain it.

Twenty-third internal audit institutions shall establish an internal audit report review system. The person in charge of internal audit shall examine whether the audit evidence is sufficient, relevant and reliable, whether the audit report is clear, whether the audit conclusion is reasonable and whether the audit suggestion is feasible.

Article 24 An internal audit institution shall, after the internal audit report is approved by the competent leader, issue an audit opinion or audit decision to the audited entity.

Article 25 The audit report of an internal audit institution is a relative guarantee for the authenticity, legality and effectiveness of the business activities and internal control of the audited entity.

Twenty-sixth internal auditors should conduct follow-up audits to ensure that the audit conclusions and suggestions put forward in the audit report are effectively implemented.

Chapter V Internal Management Standards

Twenty-seventh internal management norms are the norms for the heads of internal audit institutions to manage internal audit work, make full use of audit resources, perform internal audit duties and achieve audit objectives.

Article 28 The person in charge of an internal audit institution shall determine the annual audit objectives, formulate the annual audit work plan, and prepare the human resources plan and financial budget.

Article 29 The person-in-charge of an internal audit institution shall, in accordance with the Regulations of People's Republic of China (PRC) on Internal Audit and the internal auditing standards of China, and in combination with the actual situation of the institution, formulate an audit manual to guide the work of internal auditors and serve as the basis for supervision and inspection.

Article 30 The person in charge of an internal audit institution shall establish an internal incentive system, supervise and assess the work of internal auditors, and evaluate their performance.

Article 31 The person in charge of an internal audit institution shall keep in touch with the state audit institution and accept the supervision and guidance of the state audit institution according to law; We should keep coordination with non-governmental audit organizations and evaluate their work efficiency.

Chapter VI Supplementary Provisions

Article 32 These Standards shall be interpreted by the China Institute of Internal Auditors and promulgated by the National Audit Office.

Article 33 These Standards shall come into force as of.

Professional ethics of internal audit

Article 1 When performing their duties, internal auditors must strictly abide by the internal auditing standards of China and other regulations formulated by the Institute of Internal Auditors.

Article 2 When performing their duties, internal auditors must be honest, independent, objective and diligent.

Article 3 Internal auditors must be honest when performing their duties, and shall not accept anything of value that will damage their professional judgment.

Article 4 Internal auditors must maintain due professional prudence and can only perform tasks that can be reasonably completed within their professional competence.

Article 5 Internal auditors shall serve the organization honestly and shall not violate the principle of loyalty.

Article 6 Internal auditors must follow the principle of confidentiality and carefully use the information they obtain when performing their duties.

Article 7 Internal auditors shall not intentionally engage in activities that harm national interests, organizational interests and professional honor of internal audit.

Article 8 Internal auditors shall truthfully disclose all important matters they know in their audit reports.

Ninth internal auditors should continue to receive follow-up education, and strive to improve the quality and ability of innovation and improve the quality of service.

Announce the first batch of internal audit standards

1 internal audit report and its transmission

Internal Audit Working Paper No.2

No.3 internal audit evidence

Follow-up Audit Report No.4

The fifth internal audit plan

Internal Audit Notice No.6

Internal Audit Quality Control No.7

Article 8 Prevention, Inspection and Reporting of Fraud

Internal Control Report No.9

Coordination number of internal audit and external audit 10

Audit course

Internal auditing standards

Managing the internal audit function

Professional practice standard of internal audit

Managing demand? Working methods of internal audit

moral norm

Internal Audit and Corporate Governance

Internal Audit and Audit Committee

Organizational structure design of internal departments

Reporting programme and code of conduct

Cooperation with external auditors

Fraud detection and prevention

Establish a risk-oriented internal audit process

Manage internal audit activities

Internal audit organization and plan

Communication and approval

Resource management

Guide and implement internal audit.

Working papers? Record internal audit activities

Looking for evidence through audit sampling

Communication between audit report and internal audit

Report to the board of directors and senior management.

Documents and tables commonly used in each stage of the process

Technical methods and practical skills of internal audit

Methods of reviewing written materials

Direct search method and reverse search method

Detailed investigation method and spot check method

Objective physical verification method

Inventory, adjustment and evaluation

Found moths who embezzled public funds, recycled accounts and secretly speculated in futures.

Find out the behind-the-scenes figures who inflated the inventory value and adjusted profits to deceive the superior units.

Audit investigation method

Observation, inquiry, letter and questionnaire

Learn the skills of listening.

Don't be led by the nose by the audited entity.

Analytical review method

Internal control compliance test

Prevent fraud and negligence

Risk and control self-assessment

Data collection tools and techniques

Problem solving and decision making

Computerized audit tools and techniques

Trends under internal audit tools

HIPPA and the Growing Privacy Problem

Continuous assurance audit, XBRL and OLAP

Internal audit quality assurance and ASQ quality audit

control self assessment

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