Zheng Quan Zhi Xing·2025-09-02 10:25Core Points - The internal audit system of Wuxi WuXi AppTec Co., Ltd. aims to enhance and standardize internal audit work, protect investors' rights, and improve audit quality [1][2] - The internal audit is an independent and objective evaluation of the effectiveness of internal controls and risk management, as well as the legality, compliance, authenticity, and completeness of financial information and business activities [1][2] - The internal audit institution is responsible to the board of directors and must report directly to the audit committee when significant issues are discovered [3][5] Group 1: General Principles - The internal audit system is based on national laws and regulations, as well as the company's articles of association [1][2] - The objectives of internal control include ensuring legal compliance in management, asset security, and the authenticity of financial reporting [2] - The internal audit institution must operate independently and is not subordinate to the finance department [3][4] Group 2: Audit Committee and Personnel - The audit committee is established under the board of directors and consists of non-executive directors, with a majority being independent directors [6][7] - The company must appoint a dedicated internal audit manager responsible for managing internal audit activities [4][6] - Internal audit personnel must possess the necessary professional capabilities and undergo continuous education to enhance their skills [4][5] Group 3: Responsibilities and Authority - The audit committee guides and supervises the internal audit institution, reviews annual audit plans, and coordinates with external audit units [5][6] - The internal audit institution is responsible for auditing the legality, compliance, authenticity, and completeness of financial and economic activities [5][6] - The internal audit institution has the authority to request relevant documents, attend meetings, and investigate issues related to audit matters [7][8] Group 4: Audit Scope and Procedures - The internal audit covers financial audits, internal control audits, special audits, and management audits [8][9] - The internal audit institution evaluates the effectiveness of internal controls related to financial reporting and information disclosure [9][10] - The audit process includes verifying financial records, conducting interviews, and preparing audit work papers [10][11] Group 5: Reporting and Follow-up - After completing the audit, the internal audit department must submit an audit report, which the audited unit can respond to within five days [11][12] - The internal audit institution is responsible for monitoring the implementation of corrective measures for identified internal control deficiencies [12][13] - The internal audit institution must prepare an annual internal audit report for the audit committee [5][12]