Self evaluation report on internal control in 2021
Self evaluation report on internal control in 2021
Dongguan Aohai Technology Co.Ltd(002993) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements, combined with the internal control system and evaluation methods of the company (hereinafter referred to as the “company”), 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 the situation 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 is no impact between the benchmark date of the internal control evaluation report and the date of issuance of the internal control evaluation report
Self evaluation report on internal control in 2021
Factors affecting the evaluation conclusion of control effectiveness of the Department.
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 this internal control evaluation covers joint-stock companies and subsidiaries. The main businesses included in the evaluation scope include: basic control system, business control system, asset management control system, external guarantee, external investment management, related party transaction control system, salary and expense control system, internal supervision and control system, internal control system for the use of raised funds, etc.
（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 standard of internal control defects in financial reporting
According to the importance of financial report misstatement that may be caused by defects, the company uses a combination of quantitative and qualitative methods to divide defects into major defects, important defects and general defects.
(1) Quantitative standard
The quantitative standard takes the total profit and total assets as the measurement indicators
Major defects: ① the amount of misstatement 5% of the total profit; ② Misstatement amount 1% of total assets.
Important defects: ① 3% of total profit misstatement amount ≤ 5% of total profit; ② 0.5% of total assets misstatement amount ≤ 1% of total assets.
General defects: ① misstatement amount ≤ 3% of total profit; ② Misstatement amount ≤ 0.5% of total assets.
Self evaluation report on internal control in 2021
(2) Qualitative criteria
Major defects: ① fraud of directors, supervisors and senior managers; ② The internal supervision organization’s supervision over the company’s external financial report and internal control over financial report is invalid; ③ There is a material misstatement in the financial report, and the corresponding control activities fail to identify the misstatement, or it is necessary to correct the published financial report.
Important defects: 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 There are one or more defects in the process control of financial reporting. Although it does not meet the standard of major defects, it affects the achievement of reasonable and accurate objectives of financial reporting.
General defects: control defects other than the above major defects and important defects.
2. Identification standard of internal control defects in non-financial reporting
(1) Quantitative standard
The quantitative standard refers to the quantitative identification standard of internal control defect evaluation of financial report.
(2) Qualitative criteria
Major defects: ① serious violation of national laws and regulations; ② Lack of institutional control and systematic failure of important business; ③ Serious loss of senior managers; ④ Major defects in internal control evaluation have not been rectified. Important defects: ① serious loss of business personnel in key positions; ② There are important defects in important business systems or systems; ③ Important defects in internal control have not been rectified; ④ Other situations that have a significant impact on the company.
General defects: control defects other than the above major defects and important defects.
(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.
Self evaluation report on internal control in 2021
4、 Description of other major matters related to internal control the company has no description of other major matters related to internal control.
Dongguan Aohai Technology Co.Ltd(002993) board of directors April 20, 2022
