Sawyer, the father of internal audit, defines internal audit as an independent evaluation of various businesses and controls in an organization to determine whether it follows recognized policies and procedures, conforms to laws and standards, uses resources effectively and economically, and achieves organizational goals.

Chapter I General Principles

Article 1 In order to standardize the professional behavior of internal auditors and safeguard their professional reputation, these Standards are formulated in accordance with the Audit Law and its implementing regulations and other relevant laws, regulations and rules.

Article 2 The professional ethics of internal auditors refers to the professional ethics that internal auditors should have, the professional discipline that they should abide by and the professional responsibilities that they should bear when carrying out internal audit work.

Article 3 When engaging in internal audit activities, internal auditors shall abide by these Standards and earnestly perform their duties, and shall not harm the interests of the state, the interests of the organization and the professional reputation of internal audit.

Chapter II General Principles

Article 4 Internal auditors shall keep good faith when engaging in internal audit activities.

Article 5 Internal auditors shall follow the principle of objectivity and make audit professional judgments fairly and justly.

Article 6 Internal auditors shall maintain and improve their professional competence and participate in follow-up education in accordance with regulations.

Article 7 Internal auditors shall follow the principle of confidentiality and use the information obtained in the course of performing their duties in accordance with regulations.

Eighth internal auditors in violation of the requirements of this specification, the organization shall carry out criticism and education, and may be given certain punishment according to the circumstances.

Chapter III Integrity

Article 9 Internal auditors shall be honest and trustworthy when performing internal audit business, and shall not commit any of the following acts:

(1) distorting the facts;

(2) Concealing the problems found in the audit;

(3) Making a judgment lacking evidence support;

(4) Making misleading or vague statements.

Article 10 Internal auditors shall be honest in performing their internal audit business and shall not commit any of the following acts:

(a) the use of authority for personal gain;

(2) Obeying external pressure and violating principles.

Chapter IV Objectivity

Article 11 Internal auditors shall seek truth from facts when conducting internal audit business, and their professional judgment shall not be influenced by prejudice or conflict of interest.

Twelfth internal auditors in the implementation of internal audit services, should take the following steps to evaluate objectivity:

(a) Identify factors that may affect objectivity;

(2) Assess the severity of factors that may affect objectivity;

(three) report to the person in charge of the audit project or the person in charge of the internal audit institution on the possible impact of the loss of objectivity.

Thirteenth internal auditors should identify the following factors that may affect objectivity:

(1) Auditing the business activities I participate in;

(2) Having a direct interest in the audited entity;

(3) Having a long-term cooperative relationship with the audited entity;

(4) Having a close personal relationship with the management of the audited entity;

(5) Bear the pressure from inside and outside the organization;

(6) The scope of internal audit is limited;

(7) others.

Article 14 The person in charge of an internal audit institution shall take the following measures to ensure the objectivity of internal audit:

(a) Improving the professional ethics of internal auditors;

(2) Select appropriate internal auditors to participate in the audit project and conduct appropriate division of labor;

(3) arranging audit projects and audit teams through job rotation;

(4) Establish an appropriate and effective incentive mechanism;

(5) Formulating and implementing systematic and effective internal audit quality control systems, procedures and methods;

(VI) When the objectivity of internal auditors is seriously affected and appropriate measures cannot be taken to mitigate the impact, stop relevant business and report to the board of directors or the top management in time.

Chapter V Professional Ability

Fifteenth internal auditors should have the following professional knowledge, professional skills and practical experience required to perform their duties:

(a) audit, accounting, finance, taxation, economy, finance, statistics, management, internal control, risk management, law and information technology and other professional knowledge, as well as professional knowledge related to the organization and business activities;

(two) professional skills such as language expression, problem analysis, audit technology application, interpersonal communication, organization and management;

(3) Necessary practical experience and relevant professional experience.

Article 16 Internal auditors should understand, learn and master the development and changes of relevant laws and regulations, professional knowledge, technical methods and auditing practices through follow-up education and professional practice, so as to maintain and enhance their professional competence.

Article 17 Internal auditors shall maintain professional prudence and make rational use of professional judgment when conducting internal audit business.

Chapter VI Confidentiality

Article 18 Internal auditors shall keep confidential the information obtained from the execution of internal audit business, and shall not disclose it unless they have valid authorization, legal provisions or other legal reasons.

Article 19 Internal auditors shall perform the obligation of confidentiality in social communication and be alert to the possibility of unintentional disclosure.

Internal auditors shall not use the information obtained in the course of internal audit business to seek illegitimate interests, or use the information in a way that violates laws, regulations, organizational rules and professional ethics.

Chapter VII Supplementary Provisions

Twentieth this specification is issued by the China Institute of Internal Audit and is responsible for the interpretation.

Article 21 This Code shall come into force on June 0, 20 14+65438.

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