Harbin Dongan Auto Engine Co.Ltd(600178)
Report on the work of the audit committee of the board of directors of the company in 2021
As the audit committee under the board of Harbin Dongan Auto Engine Co.Ltd(600178) directors, the audit committee of the company conscientiously performs its duties in accordance with the relevant laws and regulations of China Securities Regulatory Commission and Shanghai Stock Exchange, the articles of association and the working rules of the audit committee of the board of directors. The report on the work of 2021 is as follows: I. the convening of the audit committee meeting
During the reporting period, the audit committee of the company held 6 meetings and 2 audit communication meetings. The matters considered are as follows:
1. On January 15, 2021, the 15th session of the 7th Audit Committee of the company was convened by means of communication voting. The meeting considered and adopted the proposal on additional confirmation of daily connected transactions in 2020.
2. On March 26, 2021, the 16th meeting of the seventh session of the audit committee of the company was held by means of communication voting. The meeting considered and passed the proposal on the provision for asset impairment, the proposal on submitting the 2020 annual report to the board of directors for deliberation, the proposal on the expected daily connected transactions in 2021 and the signing of connected transaction agreements by subsidiaries Self evaluation report on internal control of the company in 2020, audit report on internal control of the company in 2020, evaluation report on audit work in 2020, comprehensive risk management report of the company in 2021, proposal on appointment of the company’s audit institution in 2021, proposal on change of accounting policy and internal audit plan of the company in 2021.
3. On April 14, 2021, the 17th audit committee meeting of the seventh session of the company was held by means of communication voting. The meeting deliberated and adopted the proposal on submitting the report of the first quarter of 2021 to the board of directors for deliberation.
4. On August 12, 2021, the 18th audit committee meeting of the seventh session of the company was held by means of communication voting. The meeting deliberated and adopted the proposal on submitting the 2021 semi annual report to the board of directors for deliberation.
5. On October 15, 2021, the 19th meeting of the 7th Audit Committee of the company was held by means of communication voting. The meeting considered and adopted the proposal on submitting the third quarter report of 2021 to the board of directors for deliberation and the proposal on increasing the forecast of daily connected transactions in 2021.
6. On December 3, 2021, the first audit committee meeting of the eighth session of the company was held by means of communication voting. The meeting considered and adopted the proposal on increasing the forecast of daily connected transactions in 2021 (II).
In addition, the audit committee held two audit communication meetings with the annual audit accountant on January 22 and April 23, 2022 to communicate the annual audit work plan, audit arrangement and audit concerns, so as to ensure the smooth completion of the annual audit work.
2、 Main work contents of the audit committee in 2021
1. Supervise and evaluate the work of external audit institutions
(1) Evaluate the independence and professionalism of external audit institutions
After verification, zhongxinghua Certified Public Accountants (special general partnership) is qualified to engage in securities related business, can abide by independent, objective and fair ethics and professional ethics, has completed all the work entrusted by the company, has reasonable auditors, and has maintained professional ability and due attention.
(2) Propose to the board of directors to hire an audit institution
After verification, zhongxinghua certified public accountants has been able to fulfill its duties in the audit business in 2020, follow the independent, objective and fair practice standards, cooperate well with the company, and complete the annual audit entrusted by the company on time. Therefore, it is suggested to renew the appointment of zhongxinghua certified public accountants as the financial and internal control audit institution of the company in 2021, and submit the proposal to the board of directors for deliberation. (3) Audit fees of external audit institutions
According to the audit, in 2021, the company actually paid 670000 yuan for the audit of the 2020 annual report of Lixin certified public accountants, which is consistent with the specific workload and market price level of the company in 2021. (4) The audit committee shall discuss and communicate with the external audit institutions the audit scope, audit plan, audit methods and major matters found in the audit
During the reporting period, we discussed and communicated the audit scope, audit plan and audit methods with external audit institutions on site, and communicated the matters of concern.
(5) Monitor and evaluate the diligence of external audit institutions
Through the communication and discussion with the accountants on the work related to the company’s 2020 annual report and the results of the audit provided by the accountants for the company, we believe that zhongxinghua certified public accountants was diligent and conscientious during the audit of the company and followed the professional standards of independence, objectivity and impartiality. 2. Guide internal audit
As the internal audit institution of the company, the audit and legal department of the company reviewed the internal audit work plan formulated by the board of directors, recognized the rationality and feasibility of the plan, and urged the internal audit work to be carried out as planned. After reviewing the annual internal audit summary, we found no major problems in the internal audit.
3. Review the financial reports of listed companies and express opinions on them
After reviewing the financial report prepared by the Finance Department of the company, we believe that the preparation process of the company’s 2020 financial statements complies with the company’s internal control system, and the data is true and complete. We agree to submit it to the audit institution hired by the company for audit.
4. Evaluate the effectiveness of internal control
The company has prepared and formed the 2020 internal control evaluation report, and zhongxinghua certified public accountants has issued the standard unqualified internal control audit report. We believe that the company has established a relatively sound and perfect internal control management system, which meets the requirements of relevant laws and regulations, conforms to the actual situation of the company, can meet the current development needs of the company, and various internal control management systems have been effectively implemented.
5. Coordinate the communication between the management, internal audit department and relevant departments and external audit institutions. In early 2021, the company negotiated with accountants to determine the audit work plan of 2020 annual financial report. The audit committee of the board of directors actively urged and coordinated the communication between the management, internal audit department and relevant departments and external audit institutions to ensure the timely delivery of audit reports.
3、 Overall evaluation
During the reporting period, as a member of the audit committee of the board of directors of the company, we were able to ensure sufficient time and energy to perform the duties of the committee, be diligent and responsible, effectively supervise the external audit of listed companies, guide the internal audit of the company, promote the company to establish effective internal control and provide true, accurate and complete financial reports, and fulfill our duties Performed the duties of the audit committee with due diligence.
In 2022, the audit committee will strengthen communication with the company’s annual audit accountants to ensure that the financial reports disclosed by the company are true, accurate and complete and meet the requirements of the new accounting standards.
Reporter: Zhang Chunxin March 11, 2022
