The basic purpose of internal control is to promote the effective operation of enterprise organizations. It has four main tasks:
•Ensure company policies and regulations are followed.
•Avoid waste, theft and inefficiency of use of assets.
•Ensure the accuracy of accounting and operating information.
•Evaluate the performance of each department as a basis for rewards and punishments.
two.Internal audit organization
The internal audit unit is an independent unit directly subordinate to the board of directors. It is currently equipped with an audit supervisor and may be equipped with a qualified and appropriate number of auditors based on the company's size, business conditions, management needs and other legal provisions.
The appointment and removal of the internal audit manager shall be submitted to the board of directors for approval with the approval of the audit committee.
The internal audit unit regularly reports on audit work to the Audit Committee and the Board of Directors, attends the Board of Directors and reports to directors and independent directors from time to time as necessary.
three.Internal audit operations
•The annual audit plan is formulated based on the risk assessment results, and is implemented based on the audit plan approved by the board of directors. Special audits are also carried out as necessary.
•Regularly report internal audit results at regular board meetings, and report audit or review results from time to time as necessary.
•Deficiencies and abnormalities in the internal control system discovered during the audit will be tracked and reported regularly to ensure that relevant units have taken appropriate improvement measures immediately.
•Supervise all internal units and subsidiaries to evaluate the effectiveness of the internal control system on their own, and review the reports and results submitted by each unit and subsidiaries to ensure the continued and effective implementation of the internal control system.
•At the end of each year, an audit plan for the next year is formulated based on the risk assessment results and approved by the board of directors.
