NHD(SZ:002264) Zheng Quan Zhi Xing·2025-07-07 16:13Core Viewpoint - The document outlines the internal audit system of Xinhua Du Technology Co., Ltd., emphasizing the importance of independent and objective supervision of financial activities, internal controls, and risk management to enhance corporate governance and achieve organizational goals [1][2]. Group 1: Internal Audit Objectives and Responsibilities - The internal audit aims to independently supervise and evaluate the company's financial activities, internal controls, and risk management [1]. - The audit department is responsible for assessing the completeness, rationality, and effectiveness of internal control systems across the company and its subsidiaries [10]. - The audit department must report at least quarterly to the board or audit committee on the internal audit plan execution and any issues discovered [7]. Group 2: Audit Procedures and Implementation - The audit department must prepare an annual audit work plan based on the board's requirements and the company's specific situation [16]. - Auditors are required to document audit evidence clearly and completely, ensuring its sufficiency, relevance, and reliability [13]. - The audit report must include the scope, findings, evaluations, conclusions, and recommendations, along with supporting materials [18]. Group 3: Audit Authority and Compliance - The audit department has the authority to request relevant documents and data from audited units and participate in related meetings [14]. - Audited units must comply with the audit department's decisions and recommendations [15]. - The audit department is tasked with evaluating the effectiveness of internal controls related to significant financial activities, including fundraising and asset transactions [20][10]. Group 4: Consequences of Non-Compliance - Violations of laws, regulations, or internal policies can lead to economic penalties or termination of employment for individuals involved [30][31]. - Internal auditors who engage in misconduct or fail to maintain confidentiality may face disciplinary actions [32]. Group 5: Miscellaneous Provisions - The internal audit system is subject to relevant laws and the company's articles of association, with the audit department holding the interpretation rights [34][35].