Securities code: 002107 securities abbreviation: Shandong Wohua Pharmaceutical Co.Ltd(002107) Announcement No.: 2022-006 Shandong Wohua Pharmaceutical Co.Ltd(002107)
Internal control evaluation report in 2021
Shandong Wohua Pharmaceutical Co.Ltd(002107) 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, 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 (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 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 all its 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: fund activity management, asset management, procurement and payment management, sales and collection management, research and development management, engineering project management, contract management, external guarantee management, comprehensive budget management, human resources management, information system management, information disclosure management, related party transaction management Management of holding subsidiaries.
The high-risk areas of focus mainly include fund management, procurement business, sales business, financial reporting, 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.
（2） Internal control evaluation basis and internal control defect identification standard
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system. According to the identification requirements of the enterprise internal control standard system for major defects, important defects and general defects, and in combination with the company's scale, industry characteristics, risk preference, risk tolerance and other factors, the board of directors of the company distinguished internal control over financial reports from internal control over non-financial reports, and studied and determined the specific identification standards for internal control defects applicable to the company, And consistent with previous years. The identification standards of internal control defects 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:
(1) If one of the following conditions is met, it can be recognized as a major defect:
Impact of project defects
Potential misstatement of total profit: ≥ 5% of total profit and ≥ 5 million yuan
Potential misstatement of total assets ≥ 1% of total assets
Potential misstatement of operating revenue ≥ 1% of total operating revenue
(2) If one of the following conditions is met, it can be recognized as an important defect:
Impact of project defects
Total profit potential misstatement total profit 3% ≤ misstatement ＜ 5% of total profit
Potential misstatement of total assets 0.5% ≤ misstatement ＜ 1% of total assets
Potential misstatement of operating revenue 0.5% of total operating revenue ≤ misstatement ＜ 1% of total operating revenue
(3) If one of the following conditions is met, it can be recognized as a general defect:
Impact of project defects
Potential misstatement of total profit ＜ 3% of total profit
Potential misstatement of total assets ＜ 0.5% of total assets
Potential misstatement of operating revenue ＜ 0.5% of total operating revenue
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Signs of significant deficiencies in financial reporting include:
(1) Fraud of directors, supervisors and senior managers of the company;
(2) The company corrects the published financial report;
(3) Material misstatement in the current financial report found by the certified public accountant but not identified by the company's internal control;
(4) 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.
Signs of significant deficiencies in financial reporting include:
(1) Failure to select and apply accounting policies in accordance with GAAP;
(2) Failure to establish 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 objectives.
General defects: other internal control defects that do not constitute major defects and important defect standards. 2. Identification standard of internal control defects in non-financial reporting
The quantitative standard of the company's non-financial Report internal control defect evaluation shall refer to the quantitative standard of financial report defect evaluation.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
The identification of defects in non-financial reports is mainly based on the impact of defects on the effectiveness of business processes and the possibility of occurrence.
If the possibility of defects is small, it will reduce the work efficiency or effect, or increase the uncertainty of the effect, or make it deviate from the expected goal, which is a general defect;
If the possibility of defects is high, it will significantly reduce the work efficiency or effect, or significantly increase the uncertainty of the effect, or make it significantly deviate from the expected goal as an important defect;
If the possibility of defects is high, it will seriously reduce the work efficiency or effect, or seriously increase the uncertainty of the effect, or make it seriously deviate from the expected goal.
(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.
4、 Description of other major matters related to internal control the company has no description of other major matters related to internal control.
Chairman (authorized by the board of directors): Zhao Bingxian
Shandong Wohua Pharmaceutical Co.Ltd(002107) board of directors
January 19, 2002
