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Chapter Law Content

Title: Accounting Act CH
Category: Directorate-General of Budget, Accounting and Statistics, Executive Yuan(行政院主計總處)
Chapter 4 Internal Audit
Article 95
(Type of internal audit and executive officer)
Internal audit implemented by each authority shall be executed by accounting officer. However, the activities involving non-accounting professional provisions and substantive or technical matters shall be acted by the unit-in-charge of business.
Internal audit is categorized into following two types:
1. Pre-audit: The audit of events prior to entry into accounts with emphasis on control of payment and receipts.
2. Post-audit: The audit of events after entry into accounts with emphasis on review of document, account books and efficacy of work performance.
Article 96
(Scope of internal audit)
The scope of internal audit is as follows:
1. Financial audit: auditing of planning, execution and control of budget.
2. Property audit: auditing of procedures dealing with cash and other properties.
3. Performance audit: auditing of workload or performance results and cost expended by each department.
Article 97
(Manners of implementing internal audit)
Internal audit shall be executed through reports and random field work and responsibility shall be divided into and assumed by different levels.
Article 98
(Internal audit executive officer endowed with investigative power)
Accounting officer while exercising its powers to undertake internal audits and requests to each department to present its books, vouchers and other documents for review or to examine cash or properties, each responsible person shall not conceal or refuse to give it. When enquired upon, each responsible person shall provide answers in detail.
Accounting officer may while exercising its power in foregoing paragraph where it is necessary report to chief officer of authority for permission to block all related books, vouchers or other documents and only permit withdrawal of partial or whole books.
Article 99
(Treatment of unlawful accounting document)
Accounting officer of each authority in charge shall cause unlawful accounting procedures or accounting document to be corrected; those procedure or document not corrected shall be rejected and report to Chief Officer of the authority.
Accounting officer shall provide statement of objections in writing if the unlawful conduct in foregoing paragraph is resulted from the order of Chief Officer; where the statement of objection is not accepted, the accounting officer shall report to chief officer of authority or chief officer of superior authorities and chief accounting officer in charge or BAS authorities.
If the unlawful document is not disclosed either by a written objection or by reporting to a competent authority, the accounting officer in charge shall be held jointly and severally liable.
Article 99-1
The liability over the filing, handling, reimbursing, using of state affairs funds and special allowance funds before 31 December 2006, as well as the financial responsibility of related personnel shall be absolved, the administrative and civil liability of implicated personnel shall no longer be pursued, and if involving criminal liabilities shall not be punished.
Article 100
(Effect of audit or examination 1)
Accounting officer of authorities shall provide budget reserve for purchase orders of properties or prepayment of accounts that are audited and proved to be consistent and in line with budget purposes and scheduled budget plans. Contracts relating to allocations, liabilities or income and sales and purchase of bulk chattel, real estates shall be invalid unless audited, signed or stamped by accounting officer in advance.
Article 101
(Effect of audit or examination 2)
Accounting documents relating to payment and receipt of cash, notes securities shall not be used for execution of cashiering activities unless signed or stamped by accounting officer in charge or its authorized person.
External invoice statement or receipts shall not be valid unless signed or stamped by accounting officer in charge or its authorized person, where special circumstances exists, unsigned or unstamped invoice statement or receipts shall be reported and approved by controlling BAS authority to prescribe alternative means of treatment.
Article 102
(Circumstances in which accountants shall refuse endorsement)
Accounting officer of authority shall refuse to sign source documents upon discovery of the following circumstances:
1. Where purposes or evidence of the source documents are not specified
2. Where source documents lack primary supporting documents or are not in the form in accordance with law or as required by convention.
3. Where commencement of events require bidding (tender), price survey or price negotiation, lack the signature or stamp of internal audit officer in charge of execution
4. Where source document is required to be signed or stamped by chief officer of authority or senior officer or officer in charge of event, but is not signed or stamped.
5. Where source documents is required to be signed or stamped by processing officer, quality inspection officer, quantity check officer and custodians, but is not signed or stamped; or those that require an attachment of quality or quantity satisfaction certificate, but is not attached.
6. Where source documents relating to transfer, custody, gain or loss of properties is required to be signed by officer in charge of managing those activities, but is not signed or stamped.
7. Where there are obliteration marks in the words or numerical figures in the document but the obliteration marks are not verified by signature or stamps of responsible officer.
8. Where there is inconsistency between words or numerical figures in expressing amount or volume in the document.
9. where events stipulated in Subparagraph 3 and Subparagraph 5 with amount reaching the audit threshold are not dealt with pursuant to statutory audit process.
10. Other circumstances that is inconsistent with law or regulations.
Officer stipulated in forgoing Subparagraph 4 shall assume proportionate responsibilities according to the scale of business and amount involved.
Article 103
(Protected rights of internal audit officer)
Accounting officer while executing internal audit shall act pursuant to relevant law, unless there is breach against duties or gross negligence, shall not be held jointly and severally liable for damages.