Sichuan Chengfei Integration Technology Corp.Ltd(002190)
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 the requirements of internal control supervision (hereinafter referred to as the "enterprise internal control normative system"), combined with the internal control system and evaluation methods of Sichuan Chengfei Integration Technology Corp.Ltd(002190) (hereinafter referred to as the "company"), on the basis of daily and special supervision of internal control, The board of directors evaluated the effectiveness of the company's internal control as of December 31, 2021 (benchmark date of 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 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 and all directors 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 the company's 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 were no major defects in the company's internal control over financial reporting that had not been rectified and closed during the reporting period. The board of directors believed that the company had 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.
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 during the reporting period.
There are no factors that materially affect 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.
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.
1. Main units included in the scope of evaluation
The headquarters of the company and its subordinate Anhui Sichuan Chengfei Integration Technology Corp.Ltd(002190) Ruihu auto mould Co., Ltd. and Sichuan Sichuan Chengfei Integration Technology Corp.Ltd(002190) Jiwen Auto Parts Co., Ltd.
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, and the total operating revenue accounts for 100% of the total operating revenue in the company's consolidated financial statements.
2. Main operations and matters included in the scope of evaluation
Corporate Governance: organizational structure, development strategy, human resources, social responsibility and corporate culture.
Business process level: capital activities, procurement business, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial reporting, comprehensive budget, contract management, internal information transmission and information system.
The main evaluation items are as follows:
No. control elements and main evaluation items
1 organizational structure the evaluation of organizational structure mainly involves the main control links of institutional setting, division of rights and responsibilities, mutual restraint, information flow path and so on.
2 development strategy development strategy evaluation mainly involves the main control links in the formulation, approval, implementation and adjustment of strategic planning.
3 human resources human resources evaluation mainly involves the main control links of personnel recruitment, personnel transfer, personnel resignation, and the use of human resources (salary management, performance appraisal management).
4 social responsibility social responsibility evaluation mainly involves the main control links of safety production, product quality, environmental protection, social responsibility disclosure and so on.
5 corporate culture corporate culture evaluation mainly involves the main control links from the construction and evaluation of corporate culture.
6 Fund activities the evaluation of fund activities mainly involves the main control links of fund-raising management, investment management, fund receipt and payment management, daily fund management and so on.
7 purchase business purchase business evaluation mainly involves the main control links of purchase plan, supplier management, purchase price management, purchase contract, purchase acceptance, purchase payment, etc.
8 asset management asset management evaluation mainly involves the main control links of inventory management, fixed asset management, intangible asset management and so on.
9 sales business sales business evaluation mainly involves the main control links of sales plan, customer management, sales price management, sales contract, sales delivery, sales collection, sales return, etc.
Research and development research and development evaluation mainly involves the main control links of research project initiation and research, development and protection.
The content of project evaluation mainly involves the main control links of project organization and management, project design, project bidding, 11 project objectives, commencement preparation, project construction, project acceptance, project completion evaluation and so on.
The main contents of guarantee application, guarantee evaluation and guarantee settlement management are the same as those of guarantee application, guarantee management and guarantee claim control.
The content of business outsourcing evaluation mainly involves the main control links of business outsourcing scope and conditions, implementation scheme management, 13 business outsourcing outsourcer investigation, outsourcing contract management, outsourcing process management, acceptance management, accounting control and so on.
The contents of financial report evaluation mainly involve financial organization structure and personnel responsibilities, accounting system and 14 financial report accounting policies, accounting system control, daily information verification, financial analysis, consolidated financial statements, financial report disclosure, budget management, related party transaction management Financial archives management and other aspects of the main control links.
Comprehensive budget comprehensive budget evaluation mainly involves the main control links of budget preparation and approval, budget implementation and evaluation.
16 contract management contract management evaluation mainly involves the main control links of contract formulation and approval, contract performance and evaluation.
17 internal information transmission internal information transmission evaluation mainly involves the main control links of information acquisition, information transmission, information disclosure, information communication and anti fraud mechanism.
Information system information system evaluation mainly involves the main control links of information system planning, information system development management, information system security management, information system application control and so on.
3. Focus on high-risk areas
The high-risk areas of focus mainly include: procurement business, asset management, sales business, business outsourcing, 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) procedures and methods of internal control evaluation
The internal control evaluation of the company shall follow the procedures of basic norms and evaluation guidelines.
The main evaluation procedures are:
1. The company issued the notice on carrying out internal control evaluation in 2021 to arrange and require the internal control self-evaluation of subordinate units.
2. The headquarters and its subsidiaries shall formulate the internal control evaluation work plan and organize self inspection according to the division of business. ① Establish an internal control evaluation working group; ② The division of labor and requirements for the internal control evaluation issued by each department and subordinate units; ③ All departments and subordinate units shall find out the internal control defects according to the division of labor, and prepare the submission and evaluation working paper and the internal control evaluation report of each unit; ④ The internal control evaluation working group of the company reviews the evaluation working papers of each department and the internal control evaluation reports of each unit; ⑤ Prepare the general internal control evaluation report and submit it to the risk and internal control committee and the board of directors for approval.
Evaluation method: in the process of internal control evaluation, each department of the company collects effective evidence by means of testing, inspection and sampling according to the business process managed by the Department, fills in the evaluation working paper, and analyzes and identifies the internal control defects of the management business of the Department; According to the requirements suitable for the unit, each unit adopts the methods of individual interview, special discussion, walk through test, field inspection, sampling, comparative analysis and comprehensive discussion to evaluate the internal control, fill in the working paper and prepare the internal control evaluation report.
（3） Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation in accordance with enterprise internal control standard system, enterprise internal control evaluation guidelines and China Aviation Industry Corporation internal control evaluation guidelines (for Trial Implementation). 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 standards of internal control defects in financial reports
The quantitative evaluation criteria of the company's internal financial control report are as follows:
Based on the consolidated statement data of this year, the defect level standard is determined according to the importance of the internal defect that may lead to the misstatement (including omission) of the financial statements.
Item defect level
General defect, important defect, major defect
Potential misstatement of total profit 2% of total profit ≤ 2% of total profit profit misstatement ≥ 5% of total profit
Potential misstatement of total assets 0.5% of total assets 0.5% of total assets ≤ misstatement asset misstatement ≥ 1% of total assets
Potential misstatement of operating income 0.5% of total operating income of total operating income ≤ misstatement ≥ 0.5% of total operating income 1% of total operating income
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
(1) Major defects:
a) Fraud by directors, supervisors and senior managers of the company;
b) Restate the previously disclosed financial statements and correct major financial misstatements;
c) It is found that there is a material misstatement in the current financial statements, but the internal control fails to find the misstatement in the operation process;
d) The supervision of the company's audit committee and internal audit institutions on internal control is invalid.
(2) Important defects:
It refers to the combination of one or more control defects, whose severity and economic consequences are lower than those of major defects, but still deserve the attention of the board of directors and management.
(3) General defects: refer to other control defects except major defects and important 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:
Based on the consolidated statement data of this year, the defect level standard is determined according to the importance of the internal defect that may lead to the misstatement (including omission) of the financial statements.
Item defect grade general defect important defect major defect
order
Potential misstatement of total profit 2% of total profit ≤ 2% of total profit profit misstatement ≥ 5% of total profit
Potential misstatement of total assets 0.5% of total assets 0.5% of total assets ≤ misstatement assets misstatement ≥ assets of total assets
