Bohai Automotive Systems Co.Ltd(600960)
Internal control audit report
Zhongxinghua Certified Public Accountants (special general partnership)
Zhongxinghuacitified publicaccountants LLP address: 20 / F, tower sohob, Lize, No. 20, Lize Road, Fengtai District, Beijing zip code: 100073 Tel: (010) 51423818 Fax: (010) 51423816
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Report title: Bohai Automotive Systems Co.Ltd(600960) internal control audit
Accounting Report
Report No.: zhongxinghua internal control audit Zi (2022) No. 030009
Customer Name: Bohai Automotive Systems Co.Ltd(600960)
Report date: April 22, 2022
Signed CPA: Li Jiangshan (CPA: 3702 Tcl Technology Group Corporation(000100) 15)
011092022042105820534
Ji Wanli (CPA: 110001673920) Report No.: zhongxinghua internal control audit Zi (2022) No. 030009 firm name: zhongxinghua Certified Public Accountants (special general contract)
(partner)
Tel: 01051423818
Fax: 01051423816
Mailing address: Building 1, courtyard 20, Lize Road, Fengtai District, Beijing
20th floor, sohob block
E-mail: [email protected].
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catalogue
1、 Internal control audit report II. Internal control evaluation report of 2021 III. audit report Annex 1 Copy of business license of zhongxinghua Certified Public Accountants (special general partnership) 2 Copy of practicing certificate of zhongxinghua Certified Public Accountants (special general partnership) 3 Copy of certified public accountant's practice certificate
Zhongxinghua Certified Public Accountants (special general partnership) Z ho N G x i n g h u a c e r t i f i e d p u b l i c a c o n t a n t s l p address (l o c a t i o n): 20 / F, 20 floor, Tower B, Lize SOHO, 20 Lize Road, Fengtai District, No. 20 Lize Road, Fengtai District, Fengtai District, Beijing, Beijing PR China Tel (t e l): 0 1 0 - 5 1 4 2 3 8 1 8 fax (f a x): 0 1 0 - 5 1 4 2 3 8 1 6 internal control audit report
Zhongxinghua internal control audit Zi (2022) No. 030009 Bohai Automotive Systems Co.Ltd(600960) all shareholders:
In accordance with the guidelines on audit of internal control of enterprises and the relevant requirements of the practice standards for Certified Public Accountants of China, we have audited the effectiveness of internal control over financial statements of Bohai Automotive Systems Co.Ltd(600960) (hereinafter referred to as " Bohai Automotive Systems Co.Ltd(600960) company") as of December 31, 2021.
1、 Bohai Automotive Systems Co.Ltd(600960) company's responsibility for internal control
It is the responsibility of the board of directors of Bohai Automotive Systems Co.Ltd(600960) company to establish, improve and effectively implement internal control and evaluate its effectiveness in accordance with the basic norms of enterprise internal control, guidelines for the application of enterprise internal control and guidelines for the evaluation of enterprise internal control.
2、 Responsibilities of Certified Public Accountants
Our responsibility is to express audit opinions on the effectiveness of internal control over financial reporting based on the implementation of audit work, and disclose the significant defects of non-financial reporting internal control noted.
3、 Inherent limitations of internal control
Internal control has inherent limitations, and there is the possibility that misstatement can not be prevented and found. 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 audit results.
4、 Audit opinion on internal control of financial report
We believe that Bohai Automotive Systems Co.Ltd(600960) has maintained effective internal control over financial reporting in all major aspects in accordance with the basic norms of enterprise internal control and relevant regulations on December 31, 2021.
Bohai Automotive Systems Co.Ltd(600960)
Internal control evaluation report in 2021
Bohai Automotive Systems Co.Ltd(600960) 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 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 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 control evaluation
The internal control evaluation of the company determines the main businesses and events and high-risk areas included in the evaluation scope according to the risk oriented principle, covering the main businesses and events of the company and its subsidiaries. The total assets included in the evaluation scope of the company account for 100% of the total assets in the consolidated financial statements, and the total operating revenue accounts for 100% of the operating revenue in the consolidated financial statements.
The main business matters included in the evaluation scope include internal environment, risk assessment, control activities, information and communication, and internal supervision; The high-risk areas of focus mainly include: strategic risk, operational risk, financial risk and compliance risk.
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.
The main businesses and matters within the evaluation scope of the company's internal control in 2021 include the following aspects:
1. Internal environment
(1) Organizational structure: the company has established a sound corporate governance structure, with clear rights and responsibilities between the general meeting of shareholders, the board of directors, the board of supervisors and the management, performing their respective duties, checking and balancing each other and coordinating operation; The board of directors has four special committees: Strategy Committee, audit committee, remuneration and assessment and Nomination Committee; According to the needs of production and operation management, the company has set up appropriate functional management departments and production units, and scientifically divided responsibilities and authorities in accordance with the principle of separation of incompatible positions. All departments and posts perform their respective duties, assume their respective responsibilities, cooperate and restrict each other, ensuring the orderly development of the company's operation and effective prevention of risks.
(2) Development strategy: the company formulates strategic objectives suitable for the development of the company according to the overall strategic objectives of BAIC group.
(3) Corporate culture: the company strives to promote the construction of corporate culture and enhance the cohesion of the enterprise; The company takes the enterprise's internal journals, internal and external networks, bulletin boards, corporate culture manuals, cultural and sports activities, various trainings, lectures and competitions as the carrier to create a lively, United and harmonious environmental atmosphere within the enterprise, reflect the company's core values and the cultural concept of compliance and integrity, effectively improve the ideological and moral quality of employees, and enhance the employees' sense of identity, belonging and responsibility for the enterprise.
(4) Social responsibility: the company earnestly performs its responsibilities to customers, suppliers, employees, shareholders, society and other parties. The company provides customers with qualified products and services, establishes good cooperative relations with suppliers, standardizes capital settlement, and promotes the establishment of good order and competition rules.
Strictly implementing the regulations on work safety management and formulating emergency plans for various safety accidents and emergencies have played an important role in effectively preventing potential safety hazards and production accident risks and reducing their social harm.
The company has set up a flood control reserve team to voluntarily inspect the Yellow River levee in the flood season every year; Establish the "second repair battalion of Shandong Army Reserve logistics support brigade" with the participation of employees to serve as ordnance repair in wartime; Set up charity workstation, Renhe volunteer management center, set up charity fund, support charity for a long time, organize employees to participate in "charity one-day donation activities", organize centralized rescue activities for sick and poor employees for many times, and organize employees to handle the "comprehensive mutual assistance guarantee fund for in-service employees' hospitalization medical treatment" to provide assistance to sick and hospitalized employees.
2. Risk assessment
The company has established an effective risk assessment process to discover various risks that the company may encounter in time; All subsidiaries and functional departments of the company collect all kinds of information in time according to their responsibilities, and regularly report data information and analysis reports to the competent leaders and relevant departments according to the corresponding transmission methods. Hold strategic and economic operation analysis meetings and budget meetings every year to comprehensively analyze the current operation status of the company, plan the company's future development strategy and formulate the company's policies and objectives for the next year in combination with relevant national industrial policies and macro-control policies. Hold market analysis meetings on schedule every quarter to comprehensively analyze the market and formulate countermeasures; Hold economic analysis meetings regularly every quarter to comprehensively analyze the company's operation and give early warning of various risks in operation; Hold regular quality meetings, equipment and safety meetings every month and production scheduling meetings every week to prevent risks and improve management benefits through the analysis and coordination of problems existing in the current production process.
The audit department conducts risk assessment on the key control links of the existing process, identifies the potential risks existing in the company's current processes, so as to optimize the process and formulate the audit plan. And employ external auditors to audit the effectiveness of the company's internal control.
3. Control activities
On the basis of summarizing and analyzing the control measures and methods, the company has determined the key control activities and objectives of the main business processes, effectively ensured that the company's operation and management work has rules to follow, and formed a set of systematic and standardized business activity control system. Important control activities of the company mainly include:
Key control areas of sequence control activities
number
1 Market Research and sales plan, customer classification, sales contract, sales price and sales business
Sales order, sales delivery, sales invoice, etc
Key control areas of sequence control activities
number
2. Product receipt, purchased material receipt / issue, storage, product sales delivery and inventory business
Real estate inventory analysis
3 preparation of product and main accessories plan, production preparation, production scheduling, production plan and outsourcing time quota, emergency measures, 100% delivery, outsourcing procurement and other control
4. Purchase plan, supplier control, purchase price, purchase contract and purchase to purchase business
Accounts and payments
Fund revenue and expenditure plan, fund revenue and expenditure, cash control, bank account control, 5 bill and seal control; Guarantee approval, guarantee contract, guarantee performance and letter of credit
