Bece Legend Group Co.Ltd(000803)
Self evaluation report on internal control in 2021
In accordance with the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the "enterprise internal control normative system"), combined with Bece Legend Group Co.Ltd(000803) (hereinafter referred to as the "company") 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 (hereinafter referred to as the "base date" and "base date" of the internal control evaluation report).
1、 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 of the company shall supervise the establishment and implementation of internal control by the board of directors. The company's 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.
2、 Internal control evaluation conclusion
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 internal control standard system and relevant regulations.
According to the identification of major defects in the company's internal control over non-financial reports, no major defects in the internal control over non-financial reports were found on the benchmark date of the internal control evaluation report.
There are no factors affecting the evaluation conclusion of the effectiveness of internal control between the benchmark date of the internal control evaluation report and the approval date of the internal control evaluation report.
3、 Internal control evaluation
(I) evaluation scope of internal control
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. The units included in the evaluation scope include all functional departments of the company and the holding subsidiaries included in the consolidated statements of 2021. The total assets of the units included in the evaluation scope account for 100.00% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 100.00% of the total operating revenue in the company's consolidated financial statements.
The main businesses and matters included in the evaluation scope include: organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, guarantee business, financial report, comprehensive budget, contract management, information and communication; The high-risk areas of focus mainly include: organizational structure, development strategy, capital activities, comprehensive budget, contract management, financial reporting, etc.
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, and there are no major omissions.
(II) basis of internal control evaluation and identification standard of internal control defects
The company organizes the internal control evaluation according to the enterprise internal control standard system, the company's internal control manual (for Trial Implementation) and the internal control evaluation manual.
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, And consistent with previous years. The identification standards of internal control defects determined by the company are as follows: 1 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:
Quantitative standard: according to the lowest ratio of the amount of misstatement caused by defects in the total profits, total assets, operating income or owner's equity of the enterprise, it is regarded as the level of importance. According to the materiality level calculated from the consolidated accounting statements in 2021, the quantitative recognition criteria for the defects of internal control over financial reporting are determined as follows:
General defects, important defects and major defects of the comparison project
Total profit misstatement amount ＜ 3% of total profit ≤ misstatement amount ≥ total profit
3% of total profit 5% of total profit
Total assets misstatement amount ＜ 0.5% of total assets ≤ misstatement amount ≥ total assets
0.5% of total assets ＜ 1% of total assets
Misstatement amount ＜ 0.5% of total operating revenue ≤ misstatement amount ≥ operating revenue
0.5% of the total operating revenue and the amount of misstatement is less than 1% of the total revenue
The amount of misstatement ＜ 0.5% of the total owner's equity. The amount of misstatement ≥ 0.5% of the total owner's equity ≤ the amount of misstatement ＜ 1% of the total owner's equity
1% of total
The classification and identification of various defects can be classified into relevant types only if one of the above conditions is met, and strict standards are followed.
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative criteria: defects with the following characteristics are classified as major defects:
1) Fraud by directors, supervisors and senior managers;
2) The material misstatement disclosed by the external audit is not first discovered by the company;
3) The supervision of enterprise audit committee and internal audit institution on internal control is invalid;
4) Major internal control deficiencies that have been found and reported to management have not been corrected after a reasonable time.
Although an internal control defect is not identified as a major defect, the misstatement that should still attract the attention of the board of directors and management is identified as an important defect.
Internal control defects that do not constitute major defects and important defects are recognized as general defects.
2. 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:
If the amount of loss caused by non-financial reporting defects can be quantified, the quantitative standard shall be applied to determine the level of non-financial reporting defects.
The quantitative standard is determined according to the absolute amount of direct property loss.
Influence degree general defect important defect major defect
project
The amount of direct loss is 50000 yuan (including) - 500000 yuan, 500000 yuan (including) - 1 million yuan and more than 1 million yuan
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
The following signs are identified as major defects in non-financial reporting internal control:
1) Unscientific decision-making procedures of enterprises, such as wrong decision-making, lead to unsuccessful M & A;
2) Violation of national laws and regulations;
3) Loss of managers or technicians;
4) Frequent negative news in the media;
5) The results of internal control evaluation, especially major or important defects, have not been rectified;
6) Lack of institutional control or systematic failure of important business;
7) The merger and reorganization fails, or the operation of newly expanded subordinate units is unsustainable;
8) Major negative events occur and have a negative impact on the regular report disclosure of the enterprise.
Although an internal control defect is not identified as a major defect, it is still an internal control defect that should attract the attention of the board of directors and management, which is identified as an important defect.
Internal control defects that do not constitute major defects and important defects are recognized as general defects.
The identification of internal control defect level of non-financial report is mainly based on its impact on the realization of internal control objectives. The realization of strategic objectives and business objectives is often affected by many external factors beyond the control of the company. When identifying the defects of internal control against these objectives, we not only consider the final results, but mainly consider whether the mechanism and process of the company's strategy and business activities meet the requirements of internal control, And the possible impact of inappropriate mechanisms and procedures on the realization of the company's strategy and business objectives.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
According to the above identification standards of internal control defects in financial reporting, the company has no major defects or important defects in internal control of financial reporting during the reporting period.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, no major defects or important defects in the company's internal control over non-financial reports were found during the reporting period.
4、 Description of other major matters related to internal control
During the reporting period, the company did not explain other major matters related to internal control.
Bece Legend Group Co.Ltd(000803) March 4, 2022
