Core Points - The internal audit system of Suzhou Huazhi Jie Telecommunications Co., Ltd. aims to standardize internal audit work, enhance quality, and protect investors' rights [1][2] - Internal audit is defined as an evaluation activity conducted by internal personnel to assess the effectiveness of internal controls, risk management, and the authenticity and completeness of financial information [1] - The company is required to establish a robust internal audit system in accordance with national laws and regulations, tailored to its industry characteristics [1][2] General Provisions - The board of directors is responsible for ensuring the accuracy and completeness of internal control-related information disclosures [2] - An audit committee is established under the board to oversee the internal audit department, which is responsible for monitoring business activities, risk management, and financial information [2][3] - The audit department must maintain independence and not be under the leadership of the finance department [2][3] Responsibilities and Overall Requirements - The audit committee has several key responsibilities, including guiding the establishment of the internal audit system, reviewing annual audit plans, and reporting significant issues to the board [2][3] - The audit department is tasked with evaluating the integrity and effectiveness of internal controls across the company and its subsidiaries [3][4] Specific Implementation - The audit department must conduct audits covering all business activities related to financial reporting and information disclosure, including sales, procurement, inventory management, and more [5] - Audit evidence must be sufficient, relevant, and reliable, with clear documentation maintained [5][6] - The audit department is required to submit an internal control evaluation report to the audit committee at least once a year [6][7] Information Disclosure - The board or audit committee must evaluate the internal control system based on audit reports and disclose the internal control evaluation report alongside the annual report [7][8] - If an external auditor issues a non-standard report regarding internal control effectiveness, the board must provide a special explanation detailing the issue and its impact [7][8] Supervision and Management - The effectiveness of the internal control system is a key performance indicator for all departments and subsidiaries [8] - A responsibility accountability mechanism is established to address violations of the internal control system [8]
华之杰: 内部审计制度