CENTURY HUATONG(SZ:002602) Zheng Quan Zhi Xing·2025-08-29 18:21Overview - The internal control evaluation system of Zhejiang Century Huatong Group Co., Ltd. aims to identify internal control deficiencies in a timely manner and implement improvement plans to ensure effective internal control operations [1]. Definition and Scope - The internal control evaluation process involves a comprehensive assessment to form conclusions and issue evaluation reports, providing reasonable assurance regarding the effectiveness of internal control design and operation [1]. - This system applies to the company and is referenced by its subsidiaries [1]. Responsibilities - The Internal Audit Department is responsible for managing internal control evaluations, promoting the establishment and strict execution of internal control systems, monitoring compliance, and tracking the rectification of deficiencies [1]. Evaluation Principles and Implementation - Internal control evaluations focus on significant business matters and high-risk areas, assessing the effectiveness of internal control design and execution [1]. - Evaluations can be periodic or daily, with periodic evaluations requiring submission of reports to the board of directors [1]. Evaluation Content - The evaluation includes assessing whether internal controls cover company-level risks and significant business processes, the appropriateness of design methods, the effectiveness of organizational structure, and the existence of self-inspection mechanisms [1]. Evaluation Procedures and Methods - The evaluation process involves on-site testing, identifying control deficiencies, summarizing results, and preparing evaluation reports [1]. - Various methods such as interviews, surveys, and sampling are used to collect evidence regarding the effectiveness of internal controls [1]. Deficiency Recognition - The Internal Audit Department is responsible for defining standards for recognizing internal control deficiencies, which are categorized into major, important, and general deficiencies based on qualitative and quantitative criteria [2]. Evaluation Report - The internal control evaluation report includes an overview of the evaluation work, standards and basis, scope, procedures, deficiency recognition, and corrective actions taken [2]. Supervision and Accountability - The evaluation process is subject to supervision, and any concerns regarding the fairness of the evaluation can be reported to the board of directors [2].