Provisions on internal audit work

In order to strengthen the internal audit work, establish and improve the internal audit system, improve the quality of internal audit work, and give full play to the role of internal audit, the Regulations on Internal Audit Work is formulated according to the Audit Law of People's Republic of China (PRC), the Regulations on the Implementation of the Audit Law of People's Republic of China (PRC) and other relevant provisions of the state. These Provisions shall apply to the internal audit work of units (hereinafter referred to as units) that accept the audit supervision of audit institutions according to law, as well as the professional guidance and supervision of audit institutions on the internal audit work of units. The term "internal audit" as mentioned in these Provisions refers to the independent and objective supervision, evaluation and suggestions on the financial revenue and expenditure, economic activities, internal control and risk management of this unit and its subordinate units, so as to promote the unit to improve governance and achieve its goals.

Legal basis:

Provisions of the Audit Commission on internal audit work

Article 6 The internal audit institutions of state organs, institutions, social organizations and other units or internal institutions that perform internal audit duties shall carry out internal audit work under the direct leadership of the Party organizations and principal responsible persons of their units, and shall be responsible for and report to them.

The internal audit institutions of state-owned enterprises or internal institutions that perform internal audit duties shall carry out internal audit work under the direct leadership of the party organization and board of directors (or principal responsible persons) of enterprises, be responsible for them and report their work. State-owned enterprises shall establish the system of chief auditor in accordance with relevant regulations. The chief auditor shall assist the party organization and the board of directors (or principal responsible persons) in managing the internal audit work.

Article 7 Internal auditors shall have the professional abilities required for auditing. Units shall strictly abide by the recruitment standards of internal auditors, support and guarantee the internal audit institutions to carry out continuing education through various channels, and improve the professional ability of internal auditors. The person in charge of an internal audit institution shall have a working background in auditing, accounting, economy, law or management.