Doushen(Beijing) Education&Technology Inc(300010) Technology (Beijing) Co., Ltd
Self evaluation report on internal control in 2021
Doushen(Beijing) Education&Technology Inc(300010) Technology (Beijing) Co., Ltd. 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 internal control system and evaluation methods of Doushen(Beijing) Education&Technology Inc(300010) Technology (Beijing) Co., Ltd. (hereinafter referred to as the "company" or "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
(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 wholly-owned subsidiaries and holding 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 structure, organizational structure and division of responsibilities, internal audit, human resources policy, corporate culture, corporate system, control measures, information system and internal supervision. The high-risk areas of focus mainly include internal audit, human resources, control measures, information system and internal supervision. 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 in accordance with the enterprise internal control standard system, the guidelines for the standardized operation of companies listed on the gem and the basic norms of enterprise internal control of Shenzhen Stock Exchange.
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
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
The company takes 1% of the total operating income as the measurement index of the overall importance level of the income statement. When the potential misstatement amount is greater than or equal to 1% of the total operating revenue, it is recognized as a major defect;
When the potential misstatement amount is less than 1% of the total operating revenue but greater than or equal to 0.5% of the total operating revenue, it is recognized as an important defect;
When the potential misstatement amount is less than 0.5% of the total operating revenue, it is recognized as a general defect.
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Major defects:
(1) Ineffective control environment may cause the company to seriously deviate from control objectives;
(2) Major fraudulent acts of directors, supervisors and senior managers;
(3) The supervision of the company's audit committee and internal audit institutions on internal control is invalid;
(4) Major defects in internal control over financial reporting that have been found and reported to the management have not been rectified within a reasonable time;
(5) If major accounting errors are found in previous years, the disclosed financial reports shall be corrected;
(6) The external audit found that the company's current financial statements had significant misstatement, but the company's internal control failed to find the defect of such misstatement in the operation process;
(7) Other defects that may cause the company to seriously deviate from the control objectives.
Important defects:
(1) Failure to select and apply accounting policies in accordance with GAAP;
(2) Failure to establish procedures and control measures against fraud or invalid;
(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: refer to other 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:
The company takes 1% of the total operating income as the measurement index of the overall importance level of the income statement. When the potential misstatement amount is greater than or equal to 1% of the total operating revenue, it is recognized as a major defect;
When the potential misstatement amount is less than 1% of the total operating revenue but greater than or equal to 0.5% of the total operating revenue, it is recognized as an important defect;
When the potential misstatement amount is less than 0.5% of the total operating revenue, it is recognized as a general defect.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Major defects:
(1) Violate national laws and regulations, be punished by government departments, and have a significant negative impact on the disclosure of the company's periodic reports;
(2) Unscientific decision-making process leads to major failure;
(3) Massive loss of management or technical personnel;
(4) Lack of institutional control or systematic failure of important businesses, and important economic businesses do not operate effectively despite the guidance of internal control system; Major defects have not been rectified within a reasonable period.
(5) Major defects in internal control over non-financial reporting that have been found and reported to the management have not been rectified within a reasonable time;
Important defects:
(1) The democratic decision-making procedure exists but is not perfect or the decision-making procedure is wrong;
(2) Violation of national laws and regulations and punishment by government departments, but did not have a negative impact on the disclosure of the company's periodic reports;
(3) There are major defects in the implementation of important business systems;
(4) Serious loss of business personnel in key positions;
(5) Significant defects in internal control over non-financial reporting that have been found and reported to the management have not been rectified within a reasonable time.
General defects: other internal control defects that do not constitute major defects or 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 or 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 or important defects in the company's internal control over non-financial reports were found during the reporting period.
4、 Description of other major matters related to internal control
During the reporting period, the company did not explain other major matters related to internal control.
5、 Self evaluation conclusion of the company on internal control
The board of directors of the company believes that the company has established and implemented a relatively perfect internal control system, and the internal control is sound, reasonable and effective, which can meet the requirements of the company's management and the needs of future development.
Doushen(Beijing) Education&Technology Inc(300010) Technology (Beijing) Co., Ltd. board of directors April 26, 2022
