Youngor(SH:600177) Zheng Quan Zhi Xing·2025-08-29 11:21Core Viewpoint - The internal audit management system of Youngor Fashion Co., Ltd. aims to strengthen internal control, reduce operational risks, and enhance corporate value through effective evaluation of internal controls, risk management, and financial information integrity [1]. Group 1: General Principles - The internal audit is defined as an evaluation activity conducted by the company's internal personnel to assess the effectiveness of internal controls and risk management, the authenticity and completeness of financial information, and the efficiency and effectiveness of operations [1]. - The internal audit department operates under principles of objectivity, integrity, and confidentiality [1]. Group 2: Audit Objects and Responsibilities - The audit objects include all internal departments, wholly-owned or controlled subsidiaries, and significant investee companies, along with their responsible personnel [2]. - The audit department is responsible for supervising the authenticity and completeness of financial information and the establishment and implementation of internal control systems [2][3]. Group 3: Audit Department Structure - The audit department, which reports to the board of directors, must maintain independence and not be under the leadership of the finance department [2][3]. - The audit department is staffed with dedicated auditors and led by a chief internal auditor [2]. Group 4: Audit Responsibilities - The audit department has several key responsibilities, including auditing the execution of board policies, the legality and authenticity of financial data, and the effectiveness of internal control systems [3][4]. - The department must report quarterly to the board's audit committee on audit plans and findings, and submit an annual audit report [4]. Group 5: Audit Authority - The audit department has the authority to independently exercise audit functions under the leadership of the board's audit committee and can request necessary documents from relevant departments [6]. - It can also halt activities that violate laws or company regulations and recommend actions to the board's audit committee [6]. Group 6: Audit Procedures - The internal audit process includes planning, conducting audits, and reporting findings, with a requirement for the audit evidence to be sufficient, relevant, and reliable [7][8]. - Audit reports must be reviewed by the audited entities, which have a specified timeframe to respond [7]. Group 7: Miscellaneous Provisions - Any matters not covered by this system will be executed according to relevant national laws and company regulations, with the audit department responsible for interpretation [9].