Shanxi Coal International Energy Group Co.Ltd(600546)
Regulations on internal audit
Adopted at the 32nd session of the 7th board of directors in February 2022
Shanxi Coal International Energy Group Co.Ltd(600546)
Regulations on internal audit
catalogue
Chapter I General Provisions three
Chapter II audit institutions and auditors Chapter III responsibilities and authorities of internal audit Chapter IV internal audit procedures Chapter V Application of audit results Chapter VI audit management Chapter VII accountability eight
Chapter VIII Supplementary Provisions nine
Chapter I General Provisions
Article 1 in order to standardize the internal audit work of Shanxi Coal International Energy Group Co.Ltd(600546) (hereinafter referred to as ” Shanxi Coal International Energy Group Co.Ltd(600546) “), ensure the quality of internal audit, clarify the responsibilities of internal audit institutions and internal auditors, and give full play to the role of internal audit supervision, according to the Audit Law of the people’s Republic of China and its implementation regulations, the provisions of the National Audit Office on internal audit work, and the standards for the governance of listed companies The internal audit standards, the articles of association and relevant national laws and regulations are formulated in combination with the actual situation.
Article 2 the term “internal audit” as mentioned in these Provisions refers to the independent and objective supervision, evaluation and suggestions made by the Shanxi Coal International Energy Group Co.Ltd(600546) internal audit department on the appropriateness and effectiveness of the financial revenue and expenditure, business activities, internal control and risk management of the unit and its subsidiaries in accordance with relevant national laws and regulations and Shanxi Coal International Energy Group Co.Ltd(600546) rules and regulations, so as to promote the unit to improve governance and achieve objectives.
Article 3 Shanxi Coal International Energy Group Co.Ltd(600546) internal audit shall adhere to the principles of Party leadership, law and regulation and service development. Under the leadership of the Shanxi Coal International Energy Group Co.Ltd(600546) board of directors and the chairman of the board of directors, carry out internal audit independently, be responsible for and report to them. The chief auditor assists the chairman in managing the internal audit. The internal audit and supervision committee 546{of the board of directors.
Article 4 Shanxi Coal International Energy Group Co.Ltd(600546) internal audit shall be subject to centralized management. Shanxi Coal International Energy Group Co.Ltd(600546) the audit department is the competent department of audit work, which is responsible for the audit supervision and management of the whole company.
Article 5 the internal audit department shall audit and supervise its own unit and subsidiaries in accordance with the functions, powers and procedures stipulated in laws, regulations and systems.
Article 6 Shanxi Coal International Energy Group Co.Ltd(600546) and all subsidiaries and branches shall consciously accept the supervision of internal audit, actively cooperate with the internal audit work, and rectify the problems found in the audit in time. The person in charge of the auditee shall be responsible for the timeliness, authenticity and integrity of the materials provided by the auditee.
Article 7 the funds necessary for the internal audit department to perform its duties shall be included in the budget and guaranteed. Chapter II audit institutions and auditors
Article 8 the internal audit business adopts vertical leadership, and implements the centralized control mode for the internal audit of its subsidiaries and branches. According to the management needs, each subsidiary can be equipped with full-time auditors and report to the Shanxi Coal International Energy Group Co.Ltd(600546) audit department
Article 9 the internal audit department shall be equipped with auditors suitable for the work and strengthen the audit work force; Support and guarantee the continuing education of internal auditors, encourage them to participate in experience exchange activities such as business knowledge training, audit project evaluation and audit professional skill competition, and improve their professional competence.
Article 10 the selection and appointment of internal auditors shall adhere to the principle of both political integrity and ability, and shall have the professional knowledge and professional ability appropriate to the audit work they are engaged in, and meet the following conditions at the same time:
(I) have professional expertise and practical experience in audit, accounting, economics, engineering technology and other aspects, be familiar with the business activities and internal control of the unit, and continuously maintain and improve the professional and technical level and business competence through follow-up education;
(II) have the ability to comprehensively analyze problems and strong oral and written expression ability;
(III) have strong interpersonal skills and be able to communicate effectively with others properly.
Article 11 internal auditors shall abide by the code of professional ethics and perform internal audit business with due professional prudence.
Article 12 the internal audit department and personnel shall maintain independence and objectivity and shall not be responsible for the decision-making and implementation of the business activities, internal control and risk management of the auditee
Article 13 when handling audit matters, internal auditors shall withdraw if they have an interest in the auditee or the audit matters.
Article 14 internal auditors shall audit in accordance with laws and regulations, be loyal to their duties, adhere to principles, be objective and fair, seek truth from facts, perform their duties honestly and keep secrets; No abuse of power, malpractice for personal gain or dereliction of duty is allowed. Article 15 internal auditors who are devoted to their duties, adhere to principles, earnestly perform their duties and make remarkable achievements shall be commended.
Chapter III responsibilities and authorities of internal audit
Article 16 the responsibilities of the internal audit department include:
(I) establish and improve internal audit rules and regulations and work norms according to the actual management;
(II) draw up the annual internal audit plan of the unit and implement it after approval;
(III) audit the implementation of major national and group economic policies and measures and the implementation of annual plans by subsidiaries;
(IV) audit the assets, liabilities, profits and losses and other financial revenues and expenditures of subsidiaries;
(V) audit the performance of economic responsibilities by the leaders of the internal management of the unit;
(VI) audit the fixed asset investment projects of subsidiaries;
(VII) audit and evaluate the internal control and risk management of subsidiaries;
(VIII) audit the overseas institutions, overseas assets and overseas economic activities of subsidiaries;
(IX) organize other special audits;
(x) supervise and urge the implementation of the rectification work of the problems found by the audit committee of the board of directors, superior audit and internal audit;
（11） Cooperate with the audit of superior units and government audit institutions.
（12） Handle other special audit matters assigned by the board of directors and the audit committee of the board of directors.
Article 17 the internal audit department shall have the following authorities:
(I) according to the needs of audit work, the auditee is required to provide financial and accounting materials and business, management and other materials related to financial revenue and expenditure on time, including electronic data and relevant documents. The auditee shall not refuse, delay or make a false report;
(II) participate in relevant meetings of the unit and hold meetings related to audit matters;
(III) check the data and documents related to financial revenue and expenditure, economic activities, internal control and risk management, as well as the physical objects of on-site investigation;
(IV) check relevant computer systems and their electronic data and materials;
(V) investigate and ask relevant units and individuals about relevant issues in audit matters and obtain relevant supporting materials. Relevant units and personnel shall truthfully report the situation and provide supporting materials to auditors; (VI) report to the Shanxi Coal International Energy Group Co.Ltd(600546) principal in time for the ongoing serious violations of laws and regulations, serious losses and waste, and make a temporary stop decision with consent;
(VII) have the right to temporarily seal up the accounting vouchers, accounting books, accounting statements and other materials related to economic activities that may be transferred, concealed, tampered with or destroyed;
(VIII) to put forward opinions on correcting and dealing with acts in violation of financial laws and disciplines and internal management systems, as well as suggestions on improving management and economic benefits;
(IX) for those who refuse or delay the provision of materials related to audit matters, or the materials provided are untrue and incomplete, or refuse or hinder the inspection, investigation and verification of relevant conditions, the audit department shall order them to make corrections, circulate a notice of criticism and give a warning.
If it refuses to make corrections, it shall put forward handling opinions to the auditee and put forward suggestions on accountability to the relevant competent departments;
(x) if the audit department considers that the provisions on financial revenue and expenditure implemented by the auditee conflict with laws, regulations and Shanxi Coal International Energy Group Co.Ltd(600546) systems and measures, it has the right to order correction;
（11） For auditees and individuals who strictly abide by financial and economic laws and regulations, have remarkable economic benefits and outstanding contributions, they can put forward commendation suggestions to the party organization, the board of directors or the main person in charge of the unit.
Article 18 the audit supervision rights exercised by internal auditors according to law shall be protected by law, and no organization or individual may retaliate.
Article 19 the internal audit department may, according to the needs of its work, purchase audit services from the public, hire personnel with professional knowledge related to audit matters to participate in the audit work, implement the provisions of the Shanxi Coal International Energy Group Co.Ltd(600546) internal information confidentiality system, and be responsible for the audit results adopted.
Chapter IV internal audit procedures
Article 20 the internal audit department shall formulate an annual audit work plan and make reasonable arrangements for the internal audit work in accordance with the resolutions of the board of directors of the company and the relevant work requirements of the chairman and the audit committee of the board of directors, in combination with Shanxi Coal International Energy Group Co.Ltd(600546) work priorities, main tasks, risk status and management needs.
Article 21 the internal audit department shall, according to the audit plan, appoint auditors to form an audit team, and appoint the leader and chief auditor of the audit team. The audit team adopts the responsibility system of audit team leader.
Article 22 the audit team shall prepare an audit plan. Before preparing the audit plan, it shall understand the laws, regulations and policies related to the audit matters and the basic information of the auditee, and determine the audit objectives and priorities. Article 23 the audit team shall deliver the audit notice to the auditee three days before the audit, and the audit notice for special business can be delivered at the time of the audit.
Article 24 after entering the auditee, the audit team shall first listen to the auditee’s introduction, and further understand the auditee’s institutional setup, management system, business scope, asset status, accounting form, production and operation, as well as relevant information related to economic activities. Test the appropriateness, legitimacy and effectiveness of its business activities and internal control, and pay attention to the impact of information system on business activities, internal control and risk management.
Article 25 auditors shall pay attention to the risk of fraud in the business activities, internal control and risk management of the auditee, and inspect and report on fraud.
Article 26 auditors may use the methods of examination, observation, inquiry, correspondence and analytical review to obtain sufficient, relevant and reliable audit evidence to support audit conclusions and suggestions.
Article 27 when conducting audit, auditors may make use of the verified audit results of external audit institutions.
Article 28 auditors shall adopt information-based means in the audit process. The goal and scope determined in the audit plan shall not be changed by using information-based means for audit.
Article 29 auditors shall record the implementation process of audit procedures and the audit evidence collected in the audit working paper. The contents listed in audit evidence and audit working papers shall meet the requirements of adequacy, relevance and reliability.
Article 30 the audit evidence included in the audit working paper shall be signed or sealed by the relevant departments of the auditee and the personnel related to the matter.
Article 31 after the audit, the audit team shall prepare the audit report according to the audit evidence and audit working papers. The audit report shall solicit the opinions of the auditee or individual. The auditee or individual shall submit its written opinions to the audit team within five working days from the date of receiving the audit report; If no objection is raised within the time limit, it shall be deemed as no objection.
Article 32 the audit report shall be subject to the procedures of report review and signing and approval. After being approved by the chief auditor, the audit team shall issue the audit report to the auditee according to the audit conclusion, which shall take effect from the date of issuance.
Article 33 after receiving the audit report, the auditee shall organize the implementation of the rectification of audit problems, and submit the audit rectification report to the Shanxi Coal International Energy Group Co.Ltd(600546) audit department according to the requirements of the audit rectification time.
Article 34 the internal audit department may conduct follow-up audit on the main audit items and check the implementation of their rectification.
Article 35 the internal audit department shall establish audit archives for the audit matters handled and manage them in accordance with regulations. Adhere to the principle of who audits and who files, so as to complete the audit and file regularly.
Chapter V Application of audit results
Article 36 establish and improve the rectification mechanism for the problems found in the audit, and make it clear that the main person in charge of the auditee is the first person responsible for the rectification. The auditee shall rectify the problems and suggestions found in the audit in time and inform the internal audit institution of the rectification results in writing.
For the important problems found in the audit, all grass-roots party organizations should be included in the democratic life meeting and organizational life meeting of that year for analysis and rectification.
Article 37 for typical, universal and tendentious problems found in internal audit, the professional management department of the organ shall timely analyze and study, formulate and improve relevant management systems, and establish and improve internal control measures. Article 38 the internal audit department shall strengthen the cooperation with internal supervision forces such as internal discipline inspection and supervision, patrol inspection, organization and personnel, make full use of the Shanxi Coal International Energy Group Co.Ltd(600546) all-round supervision mechanism, form a joint force of supervision and promote the application of audit results.
The results of internal audit and rectification shall be used as an important basis for assessing, appointing, dismissing, rewarding and punishing cadres and relevant decisions.
Article 39 the internal audit institution shall timely transfer the clues of violations of discipline and law or other matters found in the internal audit to the Shanxi Coal International Energy Group Co.Ltd(600546) discipline inspection and supervision department or business supervision department for verification, investigation and punishment in accordance with the law and regulations.
Chapter VI audit management
Article 40 the internal audit department accepts the leadership and supervision of the Shanxi Coal International Energy Group Co.Ltd(600546) board of directors, shall submit the annual internal audit work report and annual internal audit work plan to the audit committee of the Shanxi Coal International Energy Group Co.Ltd(600546) board of directors, and maintain timely and efficient communication with the board of directors and management.
