Core Viewpoint - The document outlines the internal control system of Wuxi Xinan Technology Co., Ltd., emphasizing the importance of compliance, efficiency, asset security, and accurate information disclosure in corporate governance [1][3]. Group 1: Internal Control Objectives - The internal control aims to ensure legal compliance in operations, enhance operational efficiency, safeguard assets, and guarantee truthful and complete information disclosure [1]. - The principles guiding internal control include comprehensiveness, significance, checks and balances, adaptability, and cost-effectiveness [2]. Group 2: Internal Environment - The company is required to establish a sound governance structure and clear responsibilities for decision-making, execution, and supervision [3]. - The Board of Directors is responsible for the establishment and implementation of the internal control system, while the Audit Committee supervises its effectiveness [3][5]. Group 3: Control Content - Internal control activities encompass all operational aspects, including sales, procurement, financial reporting, and risk management [4]. - The internal control system includes management policies for various operational areas, ensuring comprehensive governance [4][5]. Group 4: Risk Assessment - The company must establish a complete risk assessment system to monitor various risks, including operational, financial, market, and regulatory risks [5][8]. - Internal and external risks are identified and analyzed to determine the company's risk tolerance and response strategies [8][19]. Group 5: Control Measures - Various control measures are implemented based on risk assessment results, including separation of incompatible duties, authorization controls, and performance evaluations [9][10]. - A major risk warning mechanism and emergency response procedures are established to address potential significant risks or emergencies [11]. Group 6: Information and Communication - The company must establish a system for collecting, processing, and transmitting internal control-related information to ensure effective communication [26][28]. - Information technology is utilized to enhance information integration and sharing within the organization [29]. Group 7: Inspection and Supervision - Regular inspections of the internal control system are conducted to identify deficiencies and ensure effective implementation [30][31]. - The internal audit department is responsible for monitoring the internal control operations and reporting findings to the Board of Directors [31][32].
锡南科技: 内部控制管理制度