Bank Of Qingdao Co.Ltd(002948) 2021 annual internal control evaluation report
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 Bank Of Qingdao Co.Ltd(002948) (hereinafter referred to as the "bank") internal control system and evaluation methods, on the basis of daily and special supervision of internal control, We evaluated the effectiveness of the bank's internal control on December 31, 2021 (the benchmark date of the internal control evaluation report).
1、 Important statement
It is the responsibility of the board of directors of the bank 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 internal control standard system. The board of supervisors shall supervise the establishment and implementation of internal control by the board of directors. The senior 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 bank 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 bank's internal control objective 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 bank's internal control over financial reporting, no major defects in the bank's internal control over financial reporting were found on the benchmark date of the internal control evaluation report. The board of Directors believes that the bank 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 bank's internal control over non-financial reporting, no major defects in the internal control over non-financial reporting 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 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
In accordance with the risk oriented principle, the bank identified the main units, businesses and matters included in the evaluation scope and high-risk areas.
The main units included in the evaluation scope include the head office, branches and subsidiaries of the bank. The total assets of the units included in the evaluation scope account for 100% of the total assets in the bank's consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the bank's consolidated financial statements.
The main businesses and matters included in the evaluation scope include: corporate governance, organizational structure, corporate culture, risk identification and evaluation, financial management, credit business, operation management, capital business, retail business, related party transactions, information exchange and feedback, information system, internal audit and other business management fields.
The high-risk areas included in the evaluation include: compliance risk of key businesses, information system management and operation security, credit risk, operational risk, liquidity risk, market risk, fraud risk, etc.
The above-mentioned units, businesses and matters included in the evaluation scope and high-risk areas cover the main aspects of the bank's operation and management, and there are no major omissions.
(II) basis of internal control evaluation and identification standard of internal control defects
The bank organized and carried out internal control evaluation in accordance with the enterprise internal control standard system and the guidelines on internal control of commercial banks.
The board of directors of the bank distinguished internal control over financial reporting from internal control over non-financial reporting in accordance with the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, combined with factors such as the size of the company, industry characteristics, risk appetite and risk tolerance, and studied and determined specific identification standards for internal control defects applicable to the bank, which were consistent with those in previous years. The identification criteria of internal control defects determined by the bank are as follows: 1 Identification standard of internal control defects in financial reporting
(1) Quantitative standard for evaluation of internal control defects in financial reporting
Quantitative criteria for major defects: the amount of possible annual financial misstatement accounts for 5% or more of the bank's pre tax profit, and compensatory control can not effectively reduce the impact of defects on the realization of control objectives. Quantitative criteria for major defects: the amount of possible impact of annualized financial misstatement accounts for 3% (inclusive) to 5% (exclusive) of the bank's pre tax profit, and compensatory control can not effectively reduce the impact of defects on the realization of control objectives. Quantitative standard of general defects: the amount of influence that may be caused by annualized financial misstatement accounts for less than 3% of the bank's pre tax profit, and compensatory control can not effectively reduce the impact of defects on the realization of control objectives.
(2) Qualitative criteria for evaluation of internal control defects in financial reporting
Qualitative criteria for major defects: the financial statements of the enterprise have been or are likely to be given negative opinions or refused opinions by certified public accountants; The senior management of the enterprise has been or is suspected of fraud; Material misstatement in the disclosed financial report; Lack of financial system control or system failure; Major or important defects in internal control over financial reporting have not been rectified. Qualitative criteria for important defects: defects in the company's financial system or system; Major defects in internal control over financial reporting have not been rectified; Other internal control defects that may cause material misstatement of financial statements. Qualitative standard of general defects: other defects in the internal control of financial reporting other than the above major defects and important defects.
2. Identification standard of internal control defects in non-financial reporting
(1) Quantitative criteria for evaluation of internal control defects in non-financial reporting
Quantitative standard of major defects: the loss caused by internal control defects accounts for 5% or more of the bank's pre tax profit, and compensatory control can not effectively reduce the impact of defects on the realization of control objectives. Quantitative standard of important defects: the loss caused by internal control defects accounts for 3% (inclusive) but less than 5% (exclusive) of the bank's pre tax profit, and compensatory control can not effectively reduce the impact of defects on the realization of control objectives. Quantitative standard of general defects: the loss caused by internal control defects accounts for less than 3% of the bank's pre tax profit, and compensatory control can not effectively reduce the impact of defects on the realization of control objectives.
(2) Qualitative criteria for evaluation of internal control defects in non-financial reporting
Qualitative criteria for major defects: serious impact on the realization of the bank's overall control objectives; Violation of national laws and regulations and punishment; The negative impact has a wide range, has attracted extensive public attention outside China, and has a serious negative impact on the bank's reputation and share price; Lack of system control or system failure of important business. Qualitative criteria for major defects: it has a certain impact on the realization of the bank's overall control objectives; Violation of internal rules and regulations of the enterprise, resulting in significant losses; The bank's reputation is greatly affected, causing negative impact on the bank's reputation both inside and outside the bank; There are defects in important business systems or systems. Qualitative criteria for general defects: slight or no impact on the realization of the bank's overall control objectives; Violating the internal rules and regulations of the enterprise without causing losses; The negative impact is limited to a certain range, the public attention is low, and the negative impact on the bank's reputation is small; There are defects in the general business system or system.
(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, no major defects and important defects in the bank's internal control over financial reporting were found during the reporting period. For general defects, the bank has timely formulated rectification plans and implemented rectification measures to further improve the adequacy and effectiveness of internal control.
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 reporting, no major defects and important defects in the bank's internal control over non-financial reporting were found during the reporting period. For general defects, the bank has timely formulated rectification plans and implemented rectification measures to further improve the adequacy and effectiveness of internal control.
4、 Description of other major matters related to internal control
nothing
Chairman (authorized by the board of directors): Guo Shaoquan Bank Of Qingdao Co.Ltd(002948) March 25, 2022
