When an allegation of corruption with reliable evidence is received by the president or the chairman of the board of directors, the decision may be made to activate a special internal audit.
At the start of an internal audit, all related accounts, documents and surveillance video should be sealed in areas with restricted access.
An internal audit department or committee will carry out the audit and report findings. The vice president and general manager shall review the report and sign off.
The Ministry of Audit, authorized by the general manager within the scope of his or her functions and powers, will handle it according to the following provisions:
The audited entity, individuals have behavior with no or minor violation of state regulations, rules of the company, shall issue an audit opinion;
If the audited departments, individuals are proven to have acted in violation of state laws and regulations, or the rules and regulations of the company, the board shall order the Ministry of Audit to submit an audit decision which contains treatment and punishment contents. Audit decisions shall be issued in the name of the company.
The main contents of the Audit Decision shall include:
1) The audit content, scope, method and time;
2) The illegal behavior cognizance committed by the audited departments and individuals;
3) An explanation of the illegal, or irregular, or transgressive behavior committed by the audited departments and individuals. The Audit should state sanctions and penalties as well as relevant laws and regulations;
4) The audit results should describe problem areas that should be addressed;
5) The deadlines and requirements for the execution of the punishment.
How to Address Issues Related to Embezzlement by Employees
Embezzlement by employees is a crime stipulated in
Criminal Law of China
. The Investigation to this kind of crime shall be the duty of public security bureau. The company may submit a complaint to public security bureau with a preliminary research and internal audit report.
Where the directors， supervisors， or the general manager abuse their authorities by accepting bribes or receiving other illegal income，or convert company assets， any such illegal gain shall be confiscated，and they shall be ordered to return the company assets and shall be disciplined by the company. Where such action constitutes a crime，criminal liability shall be imposed in accordance with the law.
Whoever from the staff of a company, an enterprise or other unit takes advantage of his office to illegally take possession of property of his unit shall, if the amount involved is relatively large (more than RMB 5000.oo – 20000.oo) , be sentenced to fixed-term imprisonment of not more than five years or criminal detention. If the amount involved is huge (More than RMB100000.00), the offender shall be sentenced to fixed-term imprisonment of not less than five years, and may concurrently be sentenced to confiscation of property.
Where a partner, when managing partnership affairs, or an employee of a partnership, by taking advantage of his position, takes into his own possession the interests that should go to the partnership or takes illegal possession of the property of the partnership by other means, he shall return such interests or property to the partnership; where he causes losses to the partnership or the other partners, he shall be liable for the losses according to law.