It has become a habit for many shareholders, especially large shareholders, especially large shareholders of state-owned enterprises, to conduct internal audits of invested companies without authorization and issue audit decisions. From this we can see how heavy the bureaucratic thinking and obsession with power are, and how weak the legal consciousness is. The modern enterprise system has been around for decades, but the corporate governance structure still cannot be implemented, and the road to reform of state-owned enterprises is still long.

The Company Law stipulates that shareholders have the right to inspect the company's account books, but they require the company's approval. Without explicit authorization in the company's articles of association, any shareholder, even those holding 99% of the shares, has no right to conduct an internal audit of the company, let alone make an audit decision! This is basic legal common sense. Shareholders can only manage the company through the shareholders' meeting, the board of directors, and the board of supervisors. This is not only legal, but also a basic requirement of modern corporate management mechanisms.

Internal audit is defined as the internal audit institution of an enterprise and is the enterprise's own governance institution. No shareholder has the right to overstep his authority.