Internal auditing is an independent, objective validation and consulting activity conducted by full-time auditors within a department or unit to add value and improve an organization's operations. It helps an organization achieve its objectives by applying a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
In China, internal auditing is not only an important part of the internal economic management of departments and units, but is also included in the audit supervision system as the basis of state auditing. Common audit objects are physical, such as inventory, fixed assets or monetary funds; accounts, such as the provision, sale of goods or services generated by the debt; rules, such as systems, plans, etc., the process and results; responsible person.
Expanded:
General Guidelines for Internal Auditing in China
1. The internal audit body shall be set up taking into account the nature, size and internal governance structure of the organization as well as the provisions of the relevant laws and regulations, and shall be equipped with a certain number of internal auditors.
2. The internal audit institution shall establish a strict quality control system within itself and actively understand and participate in the construction of the organization's internal control system.
3. Internal auditors should have specialized academic and business skills, be familiar with the organization's business activities and internal controls, and continuously maintain this professional competence through follow-up education.
4. Internal auditors shall follow a code of ethics and perform audit engagements with due professional care.
5. Ministry audit organizations and personnel shall maintain their independence and objectivity, and shall not be involved in any actual business management activities of the audited entity.
Baidu Encyclopedia-Internal Audit