Beijing Oriental Jicheng Co.Ltd(002819)
Internal control evaluation report in 2021
Beijing Oriental Jicheng Co.Ltd(002819) 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).
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, 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'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 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
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 main units included in the evaluation scope include the company and its holding subsidiaries Shanghai Yihe Trading Co., Ltd., Suzhou bode Instrument Co., Ltd., Beijing Dongfang Tianchang Technology Service Co., Ltd., Beijing Zhongke YUNPU IOT Technology Co., Ltd., dongke (Shanghai) commercial factoring Co., Ltd., Oriental International Tendering Co., Ltd. and Beijing wanlihong Technology 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; The main businesses and matters included in the evaluation scope include: development strategy, human resources, capital activities, procurement business, asset management, sales business, research and development, financial report, contract management, information system, etc; The high-risk areas of focus mainly include: capital activities, procurement business, asset management, sales business, financial reporting, contract management, information system, 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.
（2） Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system.
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. The identification standards of internal control defects determined by the company are as follows:
1. Identification criteria for defects in internal control over financial reporting
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Defect category major defect important defect general defect
Judgment content
Amount affected by misstatement 0.5% of total assets ≤ amount affected by misstatement ＜
The amount affected by misstatement of total assets ≥ total assets ＜ 0.5% of total assets
1% 1% of total production
Amount affected by misstatement total main business income amount affected by misstatement ＜
Main business income ≥ 0.5% of main business income ≤ misstatement affects the total main business income
1% of total revenue ＜ 0.5% of main business revenue
1% of total income
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows: signs of major defects in financial reporting include:
(1) Fraud of directors, supervisors and senior managers of the company;
(2) The company corrects the published financial report;
(3) Material misstatement in the current financial report found by the certified public accountant but not identified by the company's internal control;
(4) The supervision of the audit committee and the audit department on the company's external financial report and internal control over financial report is invalid.
Signs of significant deficiencies in financial reporting include:
(1) Failure to select and apply accounting policies in accordance with GAAP;
(2) Failure to establish anti fraud procedures and control measures;
(3) No corresponding control mechanism has been established or implemented for the accounting treatment of unconventional or special transactions, and there is no corresponding compensatory control;
(4) There are one or more defects in the control of the financial reporting process at the end of the period, and it can not reasonably ensure that the prepared financial statements achieve the true and complete goal.
General defects refer to other control defects other than the above 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:
Defect category major defect important defect general defect
Judgment content
Out of control amount ≥ 0.5% of total assets out of control amount 1% of total assets ≤ out of control amount 0.5% of total assets
1% of total production
Total out of control amount of main business income ＜ out of control amount of main business income ≥ 0.5% of main turnover ≤ 1% of total out of control business income ＜ 0.5% of main business income
1% of total revenue
The company has been punished by national government departments, provinces and municipalities directly under the central government, and the above government departments have been officially punished by government departments, and the significant negative impact has been disclosed and punished by the company, However, the company was not regulated, but the periodic report was not disclosed, resulting in the negative impact on the report disclosure
The qualitative criteria for the evaluation of non-financial Report internal control defects determined by the company are as follows: the identification of non-financial report defects is mainly determined by the impact of defects on the effectiveness of business processes and the possibility of occurrence.
If the possibility of defects is small, it will reduce the work efficiency or effect, or increase the uncertainty of the effect, or make it deviate from the expected goal, which is a general defect. If the possibility of defects is high, it will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or make it significantly deviate from the expected goal as an important defect; If the possibility of defects is high, it 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, which is a major defect.
(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 and 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 and important defects in the company's internal control over non-financial reports were found during the reporting period.
For the general defects of internal control found during the reporting period, the company ordered relevant departments to improve immediately, or formulate corresponding rectification measures, complete the rectification within a time limit, and designated the audit department to continuously track, supervise and confirm.
4、 Description of other major matters related to internal control
nothing
Chairman (authorized by the board of directors):
Beijing Oriental Jicheng Co.Ltd(002819) March 28, 2022
