LNCD(SH:600739) Zheng Quan Zhi Xing·2025-08-29 15:11Core Viewpoint - The document outlines the operational guidelines for the Audit Committee of Liaoning Chengda Co., Ltd., aiming to enhance corporate governance and ensure effective oversight of financial reporting and auditing processes [1][2]. Group 1: General Provisions - The Audit Committee is established to review financial information, supervise internal and external audits, and ensure compliance with relevant laws and regulations [1]. - Members of the Audit Committee must possess adequate time, expertise, and professional integrity to fulfill their responsibilities effectively [1][2]. Group 2: Composition of the Committee - The Audit Committee consists of three directors who are not senior management, with a majority being independent directors [2]. - The committee is chaired by a member with accounting expertise, elected by the board [2]. Group 3: Responsibilities and Authority - The main responsibilities include reviewing financial disclosures, supervising external audits, and evaluating internal controls [3][4]. - The committee must approve significant financial reports and changes in accounting policies before submission to the board [3][4]. Group 4: Internal and External Audit Oversight - The committee is responsible for selecting external auditors and evaluating their performance annually [4][5]. - It must also oversee the internal audit process, ensuring that internal controls are effective and any deficiencies are addressed [5][6]. Group 5: Meeting Procedures - The Audit Committee is required to meet at least quarterly, with provisions for additional meetings as necessary [9][10]. - A quorum of two-thirds of the members is needed for meetings, and decisions must be made by a majority vote [9][10]. Group 6: Reporting and Documentation - The committee must maintain detailed records of meetings and decisions, which should be preserved for at least ten years [11]. - Annual reports on the committee's activities must be disclosed to the Shanghai Stock Exchange alongside the company's annual report [11][12].