Internal control assurance report of Henan Kaiwang Electronic Technology Co., Ltd
Qxjz [2022] No. 0012
Zhongqin Wanxin Certified Public Accountants (special general partnership)
Beijing China
April, 2002
catalogue
Content page
1、 Internal control assurance report 1-2
2、 Attachment:
Henan Kaiwang Electronic Technology Co., Ltd
Self evaluation report on internal control in 2021 3-8
Zhongqin Wanxin Certified Public Accountants (special general partnership) address: 10th floor, Sunshine Building, 112 Xizhimenwai street, Beijing Tel: (86-10) 68360123 Fax: (86-10) 683 Tongkun Group Co.Ltd(601233) 000 zip code: 100044
Internal control assurance report
Qxjz [2022] No. 0012
All shareholders of Henan Kaiwang Electronic Technology Co., Ltd.:
We have accepted the entrustment to review the attached confirmation of the board of directors of Henan Kaiwang Electronic Technology Co., Ltd. (hereinafter referred to as "Kaiwang technology") on the effectiveness of internal control related to the financial statements as of December 31, 2021. The responsibility of the board of directors of Kaiwang technology is to establish and improve internal control and maintain its effectiveness. At the same time, the effectiveness of internal control related to financial statements on December 31, 2021 is recognized in accordance with the basic norms of enterprise internal control issued by the Ministry of Finance and relevant specific norms. Our responsibility is to express an assurance opinion on the effectiveness of Kaiwang technology's internal control related to the financial statements as of December 31, 2021.
We have carried out the assurance business in accordance with the provisions of other assurance business standards for Chinese certified public accountants No. 3101 - assurance business other than audit or review of historical financial information. The above standards require us to plan and execute the assurance work to obtain reasonable assurance on whether the information of the assurance object is free from material misstatement. In the process of assurance, we have implemented other procedures including understanding, testing and evaluating the rationality of internal control design and effectiveness of implementation related to financial statements, as well as other procedures we deem necessary. We believe that our assurance work provides a reasonable basis for expressing opinions.
There is an inherent possibility that fraud and internal control may lead to undetected errors or errors. In addition, due to the change of circumstances, the internal control may become inappropriate, or the degree of compliance with control policies and procedures may be reduced. According to the internal control evaluation results, it is speculated that the effectiveness of internal control in the future has a certain risk.
We believe that on December 31, 2021, the board of directors of Kaiwang technology maintained effective internal control related to the financial statements in accordance with the basic norms of enterprise internal control issued by the Ministry of Finance and the control standards of relevant specific norms. This assurance report is only for use when Kaiwang technology discloses the annual report and shall not be used for any other purpose.
(there is no text on this page, which is only the signature and seal page of Zhongqin Wanxin Certified Public Accountants (special general partnership) on the internal control assurance report of Henan Kaiwang Electronic Technology Co., Ltd.)
Zhongqin Wanxin Certified Public Accountants (special general partnership) Chinese certified public accountant:
April 11, 2002 Chinese certified public accountant:
Henan Kaiwang Electronic Technology Co., Ltd
Self evaluation report on internal control in 2021
All shareholders of Henan Kaiwang Electronic Technology Co., Ltd.:
According to 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 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, the company has 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 scope of internal control evaluation covers the main businesses and matters of the company within the scope of consolidated statements. For the key control points of business processing, it is implemented to all links of decision-making, implementation, supervision and management.
According to the requirements of the basic norms of enterprise internal control, the guidelines for the application of enterprise internal control and the guidelines for the evaluation of enterprise internal control, the internal control assessment is conducted on the key elements of internal control at the company level (including control environment, risk assessment, control activities, information and communication and internal supervision).
The main operations and matters included in the scope of evaluation include:
1. Internal control environment
The company's control environment reflects the attitude of the governance and management on the importance of control to the company. The quality of the control environment directly determines whether other controls of the company can be effectively implemented and the implementation effect. The company actively creates a good control environment and strives to provide broader space for the development of the enterprise, which is mainly reflected in the following aspects:
(1) Communication and implementation of integrity and moral values
Integrity and moral values are an important part of the control environment and affect the design and operation of important business processes of the company. The company has always attached importance to the creation and maintenance of this atmosphere, established a series of internal norms such as employee manual, internal control management system and job responsibility statement, and implemented these systems in multiple channels and all directions.
(2) Emphasis on Competence
The management of the company attaches great importance to the setting of the ability level of specific posts and the requirements for the knowledge and ability necessary to achieve this level. According to the needs of actual work, the company carries out various forms of post training and education for different posts, so that employees can be competent for their current jobs.
(3) Participation of governance
The responsibilities of the management have been clearly defined in the articles of association and policies. Through its own activities and with the support of the audit committee, the governance layer supervises the company's accounting policies and internal and external audit work and results. The responsibilities of the governance layer also include supervising and reviewing whether the policies and procedures for the effectiveness of internal control are reasonable and effective.
(4) Management philosophy and business style
The management of the company is responsible for the operation of the enterprise and the formulation, implementation and supervision of business strategy. The board of directors and the audit committee shall effectively supervise them. The management attached great importance to internal control, including information technology control, information management personnel and financial and accounting personnel, and timely and properly handled the relevant internal control reports received. The company adheres to the business philosophy of innovation, knowledge seeking, integrity and unity, and the business purpose of creating opportunities for employees, creating value for customers and creating benefits for the society. It operates honestly and legally.
(5) Organizational structure
In order to effectively plan, coordinate and control business activities, the company has reasonably determined the form and nature of organizational units, implemented the principle of separation of incompatible positions, scientifically divided the responsibilities and authorities within each organizational unit, and formed a mutual check and balance mechanism. The company has designated special personnel to be specifically responsible for internal audit and ensure the implementation of relevant accounting control systems.
(6) Distribution of authority and responsibility
The company adopts the method of assigning control responsibilities to departments and individuals, establishes a set of authorization mechanism for performing specific functions, and ensures that everyone clearly understands the reporting relationship and responsibilities. In order to effectively control the authorized use and supervise the company's activities, the company has established a budget control system, which can adjust the budget in a timely manner according to the changes of the situation. The financial department reasonably ensures that business activities are carried out in accordance with appropriate authorization through various measures; Reasonably ensure that transactions and events can be recorded in appropriate accounts in a timely manner in the appropriate accounting period with the correct amount, so that the preparation of financial statements meets the relevant requirements of accounting standards.
(7) Human resources policy
The company has established and implemented more scientific personnel management systems such as employment, training, job rotation, assessment, reward and punishment, promotion and elimination, and hired enough personnel to complete the assigned tasks.
(8) Enterprise culture construction
Business philosophy: innovation, knowledge seeking, integrity and unity
Corporate mission: create value for employees, shareholders and society by providing high-quality, high value-added products and high-quality services.
The company strengthens the publicity and implementation of corporate culture in its daily work, publicizes the concept of corporate culture to the majority of employees through various publicity channels, integrates the construction of corporate culture into daily business activities, enhances the sense of responsibility of employees and the cohesion of the company, and ensures the healthy and stable operation of the company.
2. Risk assessment process
The company has established an effective risk assessment mechanism, and set up audit committee, audit department and other special institutions to continuously and effectively identify and assess the factors that may lead to risks, such as possible changes in the company's regulatory and business environment, the entry of new employees, the use of new information system or the upgrading of the original system, rapid business development, new technology, new accounting standards and so on, and timely formulate corresponding risk response measures.
3. Information system and communication
The company has established corresponding information systems to provide timely and effective performance reports to the management, including relevant internal and external information. The company has established an information system to promote the modernization of the enterprise. Smooth communication channels and mechanisms enable the management to communicate effectively on employee responsibilities and control responsibilities. Effective communication with customers, suppliers, regulators and other outsiders enables the company's management to take further actions in time in the face of various changes.
4. Control activities
In order to reasonably ensure the realization of various objectives, the company has established relevant control procedures, mainly including transaction authorization control, responsibility division control, voucher and record control, asset contact and record use control, independent audit control, information system control, etc.
(1) Authorization control
The scope, authority, procedures, responsibilities and other relevant contents of authorization and approval are clarified. In daily business activities, managers at all levels within the unit must exercise corresponding functions and powers within the scope of authorization, and the handling personnel must also handle economic business within the scope of authorization.
(2) Responsibility separation control
Reasonably set up division of labor, scientifically divide responsibilities and authorities, implement the principle of separation of incompatible positions, and form a mechanism of mutual checks and balances. Incompatible positions mainly include: authorization approval and business handling, business handling and accounting records, accounting records and property custody, business handling and business audit, authorization approval and supervision and inspection, etc.
(3) Voucher and record control
The company has established and improved the computerized accounting system and reasonably formulated the voucher circulation procedures. When executing transactions, employees prepare relevant vouchers in time and send them to the financial department for timely accounting, and the vouchers are filed in order. Various transactions must be recorded and compared with the corresponding entries independently.
(4) Asset exposure and record use control
The company restricts the direct contact of unauthorized personnel with property and takes measures such as regular inventory, property records and account verification to ensure the safety and integrity of all kinds of property. The company has established a series of asset custody systems and accounting file custody systems, and equipped with necessary equipment and full-time personnel to ensure the safety and integrity of assets and records.
(5) Independent audit control
The company has specially set up an internal audit institution to audit and supervise the authenticity and accuracy of the company's monetary capital, major procurement, product sales, vouchers and account books and records, the consistency between accounts and facts, important economic contracts, etc., and review and evaluate the soundness, rationality and effectiveness of the company's internal control system.
(6) Information system control
The company has formulated a relatively strict information system control system, and has done relatively perfect work in the development and maintenance of information system, data input and output, document storage and custody, etc.
5. Supervision of control
Supervision is the continuous process of evaluating the effectiveness of the internal control system. Including continuous supervision, independent evaluation, etc. The company has set up an audit department with full-time personnel, and established an internal control evaluation system and internal audit system.
The financial center, audit department and other professional management departments of the company supervise the economic operation quality, economic benefits and internal control system of the company and its subsidiaries, and put forward improvement suggestions and opinions. The internal audit department of the company is directly responsible to the audit committee of the board of directors, audit and supervise the operation and financial situation of the company, and exercise audit independently
