Company code: Willfar Information Technology Co.Ltd(688100) company abbreviation: Willfar Information Technology Co.Ltd(688100)
Willfar Information Technology Co.Ltd(688100)
Internal control evaluation report in 2021
Willfar Information Technology Co.Ltd(688100) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the enterprise internal control standard system), combined with the company's (hereinafter referred to as the company's) internal control system and evaluation methods, on the basis of daily and special supervision of internal control, We evaluated the effectiveness of the company's internal control on December 31, 2021 (the benchmark date of the internal control evaluation report). I Important statement
It is the responsibility of the board of directors of the company to establish, improve and effectively implement internal control, evaluate its effectiveness and truthfully disclose the internal control evaluation report in accordance with the provisions of the enterprise's internal control standard system. The board of supervisors shall supervise the establishment and implementation of internal control by the board of directors. The management is responsible for organizing and leading the daily operation of the enterprise's internal control. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this report, and bear individual and joint legal liabilities for the authenticity, accuracy and completeness of the contents of the report.
The objective of the company's internal control is to reasonably ensure the legal compliance of operation and management, asset safety, authenticity and integrity of financial reports and relevant information, improve operation efficiency and effect, and promote the realization of development strategy. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the realization of the above objectives. In addition, as changes in circumstances may lead to inappropriate internal control or reduced compliance with control policies and procedures, there is a certain risk to speculate the effectiveness of internal control in the future according to the internal control evaluation results. II Internal control evaluation conclusion 1 On the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting
□ yes √ no
2. Evaluation conclusion of internal control over financial reporting
√ valid □ invalid
According to the identification of major defects in the company's internal control over financial reporting, there are no major defects in the internal control over financial reporting on the benchmark date of the internal control evaluation report. The board of Directors believes that the company has maintained effective internal control over financial reporting in all major aspects in accordance with the requirements of the enterprise's internal control standard system and relevant regulations. 3. Whether major defects in internal control over non-financial reporting are found
□ yes √ no
According to the identification of major defects in the company's internal control over non-financial reports, the company found no major defects in the company's internal control over non-financial reports on the benchmark date of the internal control evaluation report. 4. Factors affecting the evaluation conclusion of internal control effectiveness from the benchmark date of internal control evaluation report to the date of issuance of internal control evaluation report □ applicable √ not applicable
There are no factors affecting the evaluation conclusion of the effectiveness of internal control from the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report. 5. Whether the internal control audit opinion is consistent with the company's evaluation conclusion on the effectiveness of internal control over financial reporting
√ yes □ No 6 Whether the disclosure of major defects in internal control of non-financial reports in the internal control audit report is consistent with the disclosure of the company's internal control evaluation report √ yes □ no III Internal control evaluation (I) Scope of internal control evaluation
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. 1. The main units included in the evaluation scope include the company and all holding subsidiaries. 2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The total assets of the units included in the evaluation scope account for 100% of the total assets in the company's consolidated financial statements
The total operating income of the units included in the evaluation scope accounts for 100% of the total operating income in the company's consolidated financial statements, accounting for 3.5% The main operations and matters included in the scope of evaluation include:
Corporate governance and organizational structure, establishment and improvement of internal control system, human resource management, corporate culture, capital activities, related party transactions, procurement and payment management, sales and collection management, operation and production management, asset management, information disclosure, raised funds management, external guarantee, etc. 4. High risk areas of focus mainly include:
Procurement and payment management, sales and collection management, operation and production management, capital activities, information disclosure, related party transactions, raised funds management, etc. 5. The above units, businesses and matters included in the evaluation scope and high-risk areas cover the main aspects of the company's operation and management. Is there any major omission □ yes √ No 6 Is there a statutory exemption
□ yes √ No 7 Other explanatory matters
None (II) Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and the management requirements of the company's internal control system. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
√ yes □ no
According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with the company's scale, industry characteristics, risk preference, risk tolerance and other factors, the board of directors of the company distinguished internal control over financial reports from internal control over non-financial reports, and studied and determined the specific identification standards of internal control defects applicable to the company, Compared with previous years, the adjustment is as follows: potential misstatement risk of total new assets. 2. Identification standard of internal control defects in financial reporting
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
Potential misstatement of profits: the amount of misstatement ≥ 3% of the total profits the amount of misstatement ≤ 5% of the total profits 5% 3% of the total profits
The misstatement amount of total assets is less than or equal to 2% of the total misstatement amount of assets
Description: None
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defects 1. The company's directors, supervisors or senior managers have fraud.
2. Major defects that have been found and reported to the management have not been corrected within a reasonable time.
3. The external audit found that there was a major misstatement in the current financial report, and the company failed to find the misstatement in the process of operation.
Significant defects 1. Failure to comply with generally accepted accounting standards and apply accounting policies.
2. There are one or more defects in the control of the financial reporting process at the end of the period, and there is no reasonable guarantee that the prepared financial statements achieve the purpose of authenticity and accuracy.
General defects and other internal control defects that do not constitute major defects or important defects.
Note: none 3 Identification standard of internal control defects in non-financial reporting
The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
The amount of misstatement of direct property loss ≥ 0.5% of the total assets the amount of misstatement ≤ 1% of the total assets 1% 0.5% of the total assets
Description: None
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defects 1. Serious violation of national laws and regulations or normative documents, which has a serious impact on the realization of the company's business objectives. 2. Lack of system control or failure of system for important business.
3. Major defects in internal control have not been effectively rectified for a long time.
4. Violation of decision-making procedures leads to major mistakes.
5. Safety, environmental protection and quality accidents have a significant negative impact on the company.
If the severity of losses caused by important defects does not meet or exceed the recognition standard of major defects, but may still cause the company to suffer a certain degree of loss or impact, it shall be recognized as important defects.
General defects are internal control defects other than major defects and important defects.
Note: none (III) Identification and rectification of internal control defects 1 Identification and rectification of internal control defects in financial reporting 1.1 Major defects
Whether the company has major defects in internal control over financial reporting during the reporting period □ yes √ no 1.2 Important defects
Whether the company has significant defects in internal control over financial reporting during the reporting period □ yes √ no 1.3 General defect
None 1.4 After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting that have not been rectified □ yes √ no 1.5 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company has any important defects in the internal control of financial reporting that have not been rectified □ yes √ No 2 Identification and rectification of internal control defects in non-financial reporting 2.1 Major defects
Whether the company found any major defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.2 Important defects
Whether the company found any significant defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.3 General defect
None 2.4 After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the non-financial reporting internal control that have not been rectified □ yes √ no 2.5 After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any important defects in non-financial reporting internal control that have not been rectified □ yes √ no
IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year □ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
The company carried out internal control evaluation in accordance with the requirements of the enterprise internal control standard system and relevant regulations. The company's existing internal control system can provide reasonable guarantee for the authenticity and fairness of the company's operation and management, asset safety, financial reports and related information. No major and important defects were found in the financial reports and non-financial reports during the reporting period. In the next year, the company will continue to revise and improve various internal control management systems in combination with the development strategy, changes in the external business environment and the development trend of the company's industry, maintain the continuous and effective operation of the internal control system, further promote fine control, strengthen the supervision and inspection of the implementation of internal control, and continuously optimize various business processes and internal control environment, Provide reasonable guarantee for the realization of the company's economic benefits and strategic objectives, and promote the healthy and high-quality development of the company. 3. Other important matters
□ applicable √ not applicable
Chairman (authorized by the board of directors): Ji Willfar Information Technology Co.Ltd(688100) February 28, 2022
