Wanbangde Pharmaceutical Holding Group Co.Ltd(002082)
Internal control assurance report
Dahuhezi [2022] No. 007120
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082)
Internal control assurance report
(as of December 31, 2021)
Table of contents page I. internal control assurance report 1-2
Dahua Certified Public Accountants (special general partnership)
12 / F, building 7, yard 16, Middle West Fourth Ring Road, Haidian District, Beijing [100039]
Tel: 86 (10) 58350011 Fax: 86 (10) 58350006
www.dahua-cpa. com.
Internal control assurance report
Dahuhezi [2022] No. 007120 Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) all shareholders:
We have accepted the entrustment to review the attached confirmation made by the management of Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) (hereinafter referred to as ” Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) company”) on the effectiveness of internal control related to financial statements on December 31, 2021 in accordance with the basic norms of enterprise internal control and relevant regulations.
1、 Responsibility of enterprises for internal control
The responsibility of the management of your company is to establish and improve the internal control and maintain its effectiveness in accordance with the basic norms of enterprise internal control and relevant regulations, and ensure that the internal control evaluation report truly and completely reflects the internal control related to the financial statements of your company as of December 31, 2021.
2、 Responsibilities of Certified Public Accountants
Our responsibility is to express an assurance opinion on the effectiveness of your company’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 standard requires us to plan and perform assurance work to obtain reasonable assurance about whether your company has maintained effective internal control related to financial statements in all material aspects. In the process of assurance, we have implemented other procedures including understanding, testing and evaluating the integrity, rationality and effectiveness of the internal control system design related to the financial statements, as well as other procedures that we consider necessary. We believe that our assurance work is for development
Dahuhezi [2022] 007120 internal control assurance report
The table provides a reasonable basis for opinions.
3、 Inherent limitations of internal control
Internal control has inherent limitations, and there is the possibility of misstatement and undetected due to error or fraud. In addition, due to the change of circumstances, the internal control may become inappropriate, or the compliance with control policies and procedures may be reduced. According to the internal control evaluation results, it is speculated that there are certain risks in the effectiveness of internal control in the future.
4、 Assurance opinion
We believe that your company has maintained effective internal control related to the financial statements in all major aspects as of December 31, 2021 in accordance with the basic norms of enterprise internal control and relevant regulations.
5、 Restrictions on report users and purposes
This report is only for your company’s disclosure of the annual report and shall not be used for any other purpose. The consequences caused by improper use have nothing to do with the certified public accountants and accounting firms performing the business. We agree that this report, as a necessary document for your 2021 annual report, will be submitted together with other materials and disclosed to the public. Dahua Certified Public Accountants (special general partnership) Chinese certified public accountant:
Duan Qi
Beijing, China Certified Public Accountant:
Xin Qinghui April 13, 2002
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082)
Internal control evaluation report in 2021
Wanbangde Pharmaceutical Holding Group Co.Ltd(002082) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements (hereinafter referred to as the enterprise internal control standard system), combined with the company’s (hereinafter referred to as the company’s) internal control system and evaluation methods, 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 the 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 work 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 subsidiaries.
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: corporate governance, organizational structure, internal audit, human resource management, corporate culture construction, related party transactions, external guarantee, external investment, cost management, asset management, financial report, etc.
The high-risk areas of focus mainly include: related party transactions, external guarantee, major investment, cost management, asset management, 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.
(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 internal control standard system and the company’s current rules and regulations.
In 2021, the company completed major asset restructuring related to stripping aluminum processing business, and the asset structure and business scale of the company changed greatly compared with the previous year. The board of directors distinguished internal control over financial reporting from internal control over non-financial reporting according to the identification requirements of the enterprise’s internal control standard system for major defects, important defects and general defects, and in combination with factors such as the size of the company, industry characteristics, risk preference and risk tolerance, The research determined the new specific identification standard of internal control defects applicable to the company. The new internal control defect identification standards 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:
Evaluation benchmark major defect quantitative standard important defect quantitative standard general defect quantitative standard
3% of total profit ≤ misstatement amount ＜ profit
Total profit misstatement amount ≥ 5% of total profit misstatement amount 3% of total profit 5% of total profit
0.5% of total operating revenue ≤ amount of misstatement total operating revenue amount of misstatement ≥ 1% of total operating revenue
0.5% of 1% of total operating income
Evaluation benchmark major defect quantitative standard important defect quantitative standard general defect quantitative standard
0.5% of total assets ≤ misstatement amount misstatement amount total assets of total assets misstatement amount ≥ 1% of total assets
1% 0.5% of total output
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative criteria for defect limitation
Major defects: major misstatement in the financial report cannot be prevented, discovered and corrected in time due to individual defects or other defects. The following circumstances are identified as major defects: (1) major defects in the fraud of directors, supervisors and senior managers of the company
Behavior; (2) Material misstatement in the current financial report found by the certified public accountant but not identified by the company’s internal control; (3) 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.
Important defects: individual defects or together with other defects lead to the failure to prevent, detect and correct the misstatement in the financial report that should be paid attention to by the board of directors and management although it does not meet or exceed the material misstatement standard. The following circumstances are recognized as important defects: (1) failure to select and apply accounting policies in accordance with generally accepted accounting standards; (2) No important defect of 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: other internal 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:
Major defects of evaluation benchmark
