江苏神通: 内部控制管理制度（2025年7月）

Core Viewpoint - The internal control management system of Jiangsu Shentong Valve Co., Ltd. aims to enhance and standardize internal controls, improve management levels, and promote sustainable development in accordance with relevant laws and regulations [1][3]. Group 1: General Principles of Internal Control - The internal control system applies to the company and its wholly-owned and controlled subsidiaries [1]. - Internal control is a process implemented by the board of directors, audit committee, management, and all employees to achieve control objectives [1]. - The objectives of internal control include ensuring legal compliance, asset security, accurate financial reporting, and improving operational efficiency [1]. Group 2: Principles of Internal Control - The principles guiding internal control include comprehensiveness, importance, checks and balances, adaptability, and cost-effectiveness [2]. - Internal control should cover all business activities and focus on significant matters and high-risk areas [2]. Group 3: Elements of Internal Control - Key elements of effective internal control include internal environment, risk assessment, control activities, information and communication, and internal supervision [2]. - The internal environment encompasses governance structure, organizational setup, and company culture [2]. Group 4: Risk Assessment - The company conducts risk assessments to identify and analyze internal and external risks related to achieving control objectives [7][12]. - Risk tolerance is defined as the level of risk the company can accept, which includes overall and business-level risk limits [7]. Group 5: Control Activities - Control measures include segregation of incompatible duties, authorization and approval controls, accounting system controls, and performance evaluation controls [28][31]. - The company implements a comprehensive budget management system to clarify responsibilities in budget management [33]. Group 6: Information and Communication - The company establishes procedures for collecting, processing, and transmitting internal control-related information to ensure timely communication [38]. - Information technology is utilized to enhance information integration and sharing [15]. Group 7: Internal Supervision - The internal audit department conducts regular checks on the implementation of internal control systems and business processes [16]. - The company is required to evaluate the effectiveness of internal controls regularly and report on any deficiencies found [46][47].