Company code: Dareway Software Co.Ltd(688579) company abbreviation: Dareway Software Co.Ltd(688579) Dareway Software Co.Ltd(688579)
Internal control evaluation report in 2021
Dareway Software Co.Ltd(688579) 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 base date of internal control evaluation report to the date of issuance of 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. 5. Whether the evaluation on the effectiveness of the company’s internal control report is consistent with the audit conclusion
√ 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 company and all subsidiaries included in the consolidation scope 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
3. The main operations and matters included in the scope of evaluation include:
Corporate governance and organizational structure, human resources, corporate culture, procurement and payment, inventory management, fund management, sales and collection, financial report, contract management, R & D management, related party transactions, external guarantee, use of raised funds, infrastructure project management, information disclosure, etc. 4. High risk areas of focus mainly include:
Use of raised funds, procurement and payment management, sales and collection management, R & D management, infrastructure project management, information disclosure, 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
None (II) 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’s internal control standard system, internal control system and process regulations.
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
Operating revenue 1% of consolidated operating revenue 0.5% of operating revenue amount of misstatement ≤ amount of consolidated misstatement ≤ amount of consolidated misstatement ≤ 0.5% of 1% of operating revenue
Total assets 1% of total consolidated assets 0.5% of total consolidated assets misstatement amount ≤ misstatement amount ≤ misstatement amount ≤ 0.5% of total consolidated assets 1% of total consolidated assets
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
Major defects 1) ineffective control environment, which may cause the company to seriously deviate from the control objectives; 2) Fraud of directors, supervisors and management, which has an adverse impact on the company; 3) Major violations of the company’s accounting statements, financial reports and information disclosure; 4) The external audit found that there were significant misstatements in the current financial report, but the company’s internal control failed to find misstatements in time; 5) Major internal control deficiencies that have been reported to the management have not been corrected after a reasonable time; 6) Failure to perform internal decision-making procedures in accordance with relevant regulations, which affects the total amount of connected transactions exceeding the amount of connected transactions approved by the general meeting of shareholders, and has a serious impact; 7) The supervision of the audit committee and the internal audit department on the internal control of the company’s external financial reports is invalid.
Important defects: 1) the effectiveness of control environment is poor, which may cause the company to deviate from control objectives; 2) Personnel in key positions of the company commit fraud; 3) Failure to select and apply accounting policies in accordance with GAAP; 4) 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; 5) 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 goal of authenticity and accuracy; 6) Significant internal control deficiencies that have been reported to the management have not been corrected after a reasonable period of time; 7) Failure to perform internal decision-making procedures in accordance with relevant regulations, which affects the defect that the total amount of connected transactions exceeds the amount of connected transactions approved by the general meeting of shareholders, which has a certain impact.
General defects refer to other control defects other than the above major defects and important defects. Note: none 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
Amount of direct loss amount of direct loss ≥ 0.25% of total consolidated assets of consolidated assets ≤ amount of direct loss ＜ 0.5% of total consolidated assets amount of loss ＜ 0.5% of total consolidated assets and 0.25% of total assets Description: None
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 defects 1) violation of national laws, regulations or normative documents; 2) Violation of decision-making procedures, leading to major decision-making mistakes and causing heavy losses to the company; 3) Lack of management system for important business or systematic failure of system; 4) The media frequently expose major negative news, which is difficult to restore its reputation; 5) Major safety responsibility accidents in the computer room lead to shutdown or large-area data loss; 6) Serious loss of management or technical personnel; 7) The results of internal control evaluation, especially major or important defects, have not been rectified; 8) Other circumstances that have a significant impact on the company.
Important defects 1) violation of internal rules and regulations of the enterprise, resulting in losses; 2) Violation of decision-making procedures leads to general mistakes and small losses to the company; 3) Serious loss of business personnel in key positions of the company; 4) Defects in important business management system or system; 5) Important or general defects in internal control have not been rectified;
General defects refer to other control defects other than the above 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 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
None 1.4 After the above rectification, on the benchmark date of the internal control evaluation report, whether the company has any major defects in the internal control over 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, whether the company has 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
□ yes √ no 2.3 General defect
None 2.4 After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the 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, whether the company finds any important defects in non-financial reporting internal control 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
During the reporting period, the company combined the daily supervision and special supervision of internal control with the actual business development. The implementation of the company’s internal control was effective, and no major and important defects were found in the financial report and non-financial report. In 2022, the company will further improve the internal control system and business process control, strengthen the supervision and inspection of internal control, improve the management level of internal control, effectively prevent all kinds of risks and ensure the sustainable and healthy development of the company in strict accordance with the basic norms and supporting guidelines of internal control. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Li Qingzhong Dareway Software Co.Ltd(688579) April 12, 2022
