General Principles - The internal audit system of Yitong Century Technology Co., Ltd. aims to standardize internal audit work, enhance internal control, improve risk management, and promote corporate governance to protect the rights of the company and its shareholders [1][2] - Internal audit is defined as an independent and objective evaluation of the company's financial activities, internal controls, and risk management to facilitate governance and achieve corporate goals [1][3] Internal Control - Internal control is a process implemented by the board of directors, management, and all employees to ensure legal compliance, asset security, and the authenticity of financial reporting [2] Audit Institution and Personnel - The Audit Department is designated as the internal audit institution, reporting to the board's audit committee and maintaining independence from the finance department [2][3] - The company must have at least three dedicated internal auditors, with the possibility of hiring external experts as needed [2][3] Responsibilities and Authority of the Audit Department - The audit committee guides and supervises the internal audit work, reviews annual audit plans, and coordinates with external audit entities [3][4] - The Audit Department is responsible for evaluating the effectiveness of internal controls, auditing financial data, and reporting significant issues to the audit committee [4][5] Audit Procedures - The audit work primarily involves on-site audits, with the possibility of remote audits, and the department must establish a work paper system to document audit evidence [6][7] - Audit reports must be drafted, reviewed, and finalized with input from the audited parties, and any disputes must be addressed promptly [7][8] Audit Archive Management - The Audit Department must organize and archive audit documents for at least ten years, ensuring confidentiality and compliance with board regulations [8][9] Internal Control Evaluation - The internal audit institution is responsible for conducting internal control evaluations, which must be reported to the board and disclosed on designated websites [9] Rewards and Penalties - The company will reward auditors who perform their duties effectively and identify significant economic losses, while also penalizing those who violate laws or company regulations [9][10]
宜通世纪: 内部审计制度(2025年08月)