China Construction Bank Corporation(601939)
Internal control evaluation report in 2021
China Construction Bank Corporation(601939) 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: head office departments, domestic and foreign branches and subsidiaries 2 Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The ratio of the total assets of the units included in the evaluation scope to the total assets of the company’s consolidated financial statements 100
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 The main operations and matters included in the scope of evaluation include:
Internal environment, risk assessment, information and communication, internal supervision, financial accounting management, risk management, asset liability management, channel and operation management, information technology management, credit approval, corporate loan, international business, investment custody business, interbank business, financial management business, investment banking business, financial market, personal deposit, personal loan, credit card business, Internet banking business, settlement and cash management business, etc. 4. High risk areas of focus mainly include:
Credit business, information technology, foreign exchange business, Internet banking, etc. 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
nothing
（2） Basis of internal control evaluation and identification standard of internal control defects
In accordance with the enterprise internal control standard system, the guidelines on internal control of listed companies of Shanghai Stock Exchange, the code for corporate governance practices of the stock exchange of Hong Kong, the accounting standards for business enterprises, the guidelines on internal control of commercial banks and the rules for the preparation of information disclosure of companies offering securities to the public No. 21 – General Provisions on the annual internal control evaluation report issued by the regulatory authorities, The basic provisions on China Construction Bank Corporation(601939) internal control, measures for evaluation of China Construction Bank Corporation(601939) internal control, China China Construction Bank Corporation(601939) internal control defect identification standard, etc. formulated by the company organize the evaluation of internal control. 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
Misstatements and misstatements ≥ pre tax of the current year’s consolidated statements; pre tax profit of the current year’s consolidated statements; misstatements 5% of the total tax profit of the current year’s consolidated statements; 0.5% ≤ misstatements 0.5% of the total profit before the current year’s consolidated statements
And report 5% of the total profit before tax
Description: None
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
Material defect the combination of one or more internal control defects may lead to the failure to prevent, detect and correct the material misstatement in the financial report in a timely manner.
Signs of significant defects include but are not limited to:
1. Fraud of directors, supervisors or senior managers;
2. Correction of published financial reports;
3. Material misstatement in the current financial report found by the certified public accountant but not identified by the internal control;
4. The supervision of internal control over financial reporting is invalid.
Material defect the combination of one or more internal control defects may lead to the failure to prevent, detect and correct the misstatement in the financial report that does not constitute a material misstatement but should still attract the attention of the board of directors and management.
Signs of significant defects include but are not limited to:
1. Failure to select and apply accounting policies in accordance with generally accepted accounting standards;
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 report reaches the goal of authenticity and integrity.
Other internal control defects in financial reporting that do not constitute major defects and important defects.
No: description
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
Negative financial impact negative financial impact ≥ consolidated profit before tax of the current year, negative financial impact 5% of total profit before tax of the current year, 0.5% ≤ negative financial impact, and total profit before tax of the current year 0.5% of profit before tax of the current year
Total profit 5%
No: description
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
Major defect the combination of one or more internal control defects has a significant negative impact on legal compliance, asset safety, improving business efficiency and effect, promoting the realization of development strategy and other control objectives.
Signs of significant defects include but are not limited to:
1. Major mistakes caused by decision-making;
2. Serious violation of national laws and regulations and severe punishment;
3. Negative news frequently appears in the media, covering a wide range;
4. The system of important business fails as a whole.
Important defect the combination of one or more internal control defects has an important negative impact on legal compliance, asset safety, improving business efficiency and effect, promoting the realization of development strategy and other control objectives.
Signs of significant defects include but are not limited to:
1. Important mistakes caused by decision-making;
2. Violation of internal rules and regulations, resulting in serious losses;
3. Negative news in the media, affecting local areas;
4. There are important mistakes in the system design or system control of important business.
Other non-financial reporting internal control defects that do not constitute major defects and important defects.
Note: none (III) 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 any major defects in internal control over financial reporting during the reporting period
□ yes √ no 1.2 Important defects
Whether the company has any significant defects in internal control over financial reporting during the reporting period
□ yes √ no 1.3 General defect
A small number of general defects in internal control over financial reporting found during the reporting period, and the possible risks are within the controllable range, which will not have a material impact on the operation and management of the company. The company attaches great importance to these matters and has completed or is implementing the rectification.
1.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting that have not been rectified
□ yes √ no 1.5 After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any important defects in the internal control of financial reporting that have not been rectified
□ yes √ No 2 Identification and rectification of internal control defects in non-financial reporting 2.1 Major defects
Whether the company found any major defects in internal control over non-financial reporting during the reporting period
□ yes √ no
2.2. Important defects
Whether the company found any significant defects in internal control over non-financial reporting during the reporting period
□ yes √ no 2.3 General defect
A small number of general defects in internal control over non-financial reporting found during the reporting period, the possible risks are within the controllable range and will not have a material impact on the operation and management of the company. The company attaches great importance to these matters and has completed or is implementing the rectification. 2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in non-financial reporting internal control that have not been rectified
□ yes √ no 2.5 After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any important defects in the internal control of non-financial reporting that have not been rectified
□ yes √ no IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year
□ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
In 2021, the company actively responded to the changes of internal and external business environment and earnestly implemented supervision
