Company code: Beijing North Star Company Limited(601588) company abbreviation: Beijing North Star Company Limited(601588)
Beijing North Star Company Limited(601588)
Internal control evaluation report in 2021
Beijing North Star Company Limited(601588) all shareholders:
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 the company's (hereinafter referred to as the company's) internal control system and evaluation methods, and 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 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 headquarters of the company, its affiliated branches and 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
3. The main operations and matters included in the scope of evaluation include:
The company included the internal environment, risk assessment, control activities, information and communication and internal supervision of the internal control system into the scope of this year's evaluation. The company level mainly includes organizational structure, development strategy, human resources policy, social responsibility, corporate culture, etc. the business level mainly includes capital activities, procurement business, asset management, sales business, engineering projects, guarantee business, contract management, etc. 4. High risk areas of focus mainly include:
Fund activities, procurement business, asset management, sales business, engineering projects, guarantee business and contract management. 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.
（2） Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation in accordance with the requirements of the enterprise internal control standard system, the company law, the guidelines for internal control of listed companies on Shanghai Stock Exchange and other laws and regulations, and the provisions of the company's internal control manual and internal control evaluation manual. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
The board of directors of the company distinguished the internal control of financial report from the internal control of non-financial report according to the identification requirements for major defects, important defects and general defects of the enterprise internal control standard system, combined with the factors such as the company's size, industry characteristics, risk preference and risk tolerance, and studied and determined the specific identification standards of internal control defects applicable to the company, which are consistent with the previous years. 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
Pre tax of consolidated statements 5% of pre tax profit of consolidated statements 3% of pre tax profit of consolidated statements potential misstatement amount ＜ consolidated statement profit ≤ potential misstatement amount ≤ potential misstatement amount ＜ 3% of pre tax profit of consolidated statements
5% of pre tax profit of the statement
Note: after comprehensive consideration of the company's total assets, net assets, total income, pre tax profit and other index factors, the company determines the quantitative index of this year.
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, alone or together with other defects, make it impossible to prevent or detect and correct major misstatement in the financial report in time.
At a minimum, the following situations shall be identified as major defects and strong signs of major defects:
-Restate the previously published financial statements to reflect the correction of misstatement caused by error or fraud;
-The supervision of the Audit Committee on the company's external financial statements and the internal control of financial reports is invalid- Discover fraud involving senior management;
-It has been reported to the board of directors, but after the specified time limit, the inspected unit still fails to rectify the important defects- Control environment failure.
Important defects, alone or in combination with other defects, lead to the failure to prevent, find and correct the misstatement in the financial report that does not constitute a material misstatement but should still attract the attention of the management. When there are defects in the following areas and controls, whether they are identified as important defects shall be considered:
-Control over the application of accounting standards and accounting policies;
-Anti fraud procedures and controls;
-Control of unconventional or unsystematic transactions;
-Control the financial reporting process at the end of the period.
General defects refer to other control defects other than the above major defects and important defects.
Note: it is judged by the influence degree and possibility of defects on the realization of internal control objectives of financial reporting. 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
Before tax of consolidated statements 5% of the profit before tax of consolidated statements 3% of the profit before tax of consolidated statements direct property loss amount ＜ consolidated
Profit ≤ amount of direct property loss ≤ amount of direct property loss ＜ 3% of pre tax profit in the consolidated statement
5% of the pre tax profit of the consolidated financial statements
Note: after comprehensive consideration of the company's total assets, net assets, total income, pre tax profit and other index factors, the company determines the quantitative index of this year.
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
If the possibility of major defect is high, which will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, or make it seriously deviate from the expected goal, it shall be considered as a major defect. At a minimum, the following situations shall be identified as major defects and strong signs of major defects:
-Lack of democratic decision-making process, which leads to major mistakes;
-Violation of national laws and regulations and punishment;
-Serious loss of middle and senior managers and senior technicians;
-Negative news frequently appears in the media, involving a wide range;
-Unable to achieve all business objectives or key performance indicators;
-The business is suspended due to illegal operation;
-Potential large-scale public legal complaints;
-Lack of system control or failure of system for important business;
-Major or important defects in internal control have not been rectified.
If the possibility of occurrence of important defects is high, which will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or significantly deviate from the expected goal, it shall be considered as important defects. The following situations shall be considered to determine whether it is an important defect:
-The democratic decision-making procedure exists but is not perfect, and the decision-making procedure leads to general mistakes;
-Violating the company's internal rules and regulations and causing losses;
-Serious loss of business personnel in key positions;
-Negative news in the media, affecting local areas;
-Unable to achieve some operational objectives or key indicators;
-Restricted by regulators;
-Major remedial measures should be implemented for large-scale public complaints;
-Defects in important business systems or mechanisms;
-Important or general defects in internal control have not been rectified.
General defects are considered as general defects if they are less likely to occur, which will reduce the work efficiency or effect, increase the uncertainty of the effect, or make it deviate from the expected goal. The following situations should be considered to identify the design or operation defects of internal control:
-The efficiency of decision-making procedure is not high;
-Violation of internal regulations without causing losses;
-Serious loss of business personnel in general posts;
-Negative news appears in the media, but the impact is small;
-Slow down business operations;
-Be punished or fined by laws and regulations;
-In case of individual complaints, remedial measures with certain procedures shall be implemented;
-Defects in general business system or mechanism;
-General defects have not been rectified.
Note: it is judged by the impact of defects on the effectiveness of business processes (i.e. the impact on the achievement of safety, operation, manpower, legal and other objectives) and the possibility of occurrence. （3） 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
During the reporting period,
