CSI Solar(SH:688472) Zheng Quan Zhi Xing·2025-08-21 16:58Core Viewpoint - The internal audit management system of Canadian Solar Inc. aims to standardize and enhance the quality of internal audit work, ensuring effective internal control and risk management, as well as the authenticity and completeness of financial information [1][2]. Group 1: General Principles - The internal audit system applies to all internal departments and personnel of the company [1]. - Internal audit is defined as the evaluation activities conducted by the internal audit department to assess the effectiveness of internal controls and risk management, as well as the efficiency and effectiveness of operational activities [1]. - The internal audit department operates independently and is not subject to interference from other departments or individuals [1]. Group 2: Organizational Structure and General Provisions - The board of directors establishes an audit committee composed of directors, with a majority being independent directors, including at least one accounting professional [6]. - The internal audit department is responsible for supervising financial management and the implementation of internal control systems within the company and its subsidiaries [7]. - The internal audit department must maintain independence and cannot be under the leadership of the financial department [9]. Group 3: Audit Scope and Content - The internal audit department's responsibilities include evaluating the integrity and effectiveness of internal controls, financial reports, and compliance with laws and regulations [16][18]. - The audit scope covers financial budgeting, financial reporting, operational results, and management of external investments and assets [16][18]. - Internal audit personnel must maintain confidentiality regarding non-public information encountered during their work [14]. Group 4: Responsibilities and Authority of Audit Institutions - The audit committee guides and supervises the internal audit department, reviews work plans and reports, and coordinates with external audit units [17]. - The internal audit department is responsible for checking the completeness and effectiveness of internal control systems and must report significant issues to the audit committee [18][19]. - Internal audit personnel have the authority to request relevant documents and information from audited units [25]. Group 5: Specific Audit Implementation Measures - The internal audit department must conduct audits of significant external investments, asset purchases and sales, guarantees, and related transactions as part of its annual work plan [3][10]. - Audits of external guarantees must ensure compliance with approval procedures and assess the financial health of the guaranteed parties [12]. - The internal audit department must submit internal audit reports to the audit committee at least quarterly, detailing the execution of audit plans and identified issues [4][19]. Group 6: Information Disclosure - The audit committee must issue an annual internal control self-evaluation report based on the internal audit department's evaluation report [37]. - The company is required to disclose the internal control self-evaluation report and the internal control audit report from the accounting firm alongside its annual report [40].