JLEC(SH:601518) Zheng Quan Zhi Xing·2025-08-27 13:17General Principles - The regulation aims to enhance the internal control system, improve the quality of information disclosure, and strengthen the monitoring of annual report preparation and disclosure by the Audit Committee [1][2] - Audit Committee members are required to diligently perform their duties in accordance with relevant laws and regulations, ensuring the overall interests of the company are maintained [1][2] Responsibilities of the Audit Committee - The Audit Committee is responsible for initiating the selection of the annual report auditing firm, reviewing selection documents, and supervising the selection process [2][3] - It must assess the independence and professionalism of the auditing firm, particularly regarding the impact of non-audit services on independence [2][3] - The Committee is tasked with submitting recommendations for hiring or replacing the auditing firm and its fees to the Board after prior research by the Party Committee [2][3] - Regular communication with the auditing firm regarding the audit scope, plan, methods, and significant findings is required [2][3] - The Committee must coordinate the timing of the audit work with the auditing firm and guide the internal audit department [2][3] Communication and Reporting - The Audit Committee is required to submit an evaluation report on the performance of the auditing firm and its supervisory responsibilities to the Board at least annually [2][3] - A separate communication meeting with the auditing firm, without management present, must be held at least once a year [2][3] Internal Control Evaluation - The Audit Committee must evaluate the establishment and implementation of internal control systems related to financial reporting and disclose findings in an internal control evaluation report [5][6] - The report should include the effectiveness of internal controls, any significant risks, and corrective measures for identified deficiencies [5][6] Appointment of Auditing Firms - The Audit Committee votes on the annual financial report and submits the decision to the Board for approval, along with a summary report on the auditing firm's performance [3][4] - The Committee must focus on any changes in the auditing firm during the audit period and ensure proper evaluation of both the previous and new firms [3][4] Confidentiality and Compliance - Members of the Audit Committee are obligated to maintain confidentiality and prevent insider trading or other illegal activities during the report preparation and auditing period [4][6]