Chapter One General Principles
Article 1
These implementation rules are formulated based on the "Company Law of the People's Republic of China," "Code of Corporate Governance for Listed Companies," the Articles of Association of Jilin Chemical Industrial Co., Ltd., the U.S. Securities Exchange Act of 1934, the Sarbanes-Oxley Act of 2002, the Hong Kong Stock Exchange Listing Rules, and other applicable laws and regulations, combined with the actual situation of the company, to define and regulate the responsibilities, composition, and workflow of the Audit Committee.
Article 2
The working principles of the Audit Committee. The Audit Committee is established by the Board of Directors and is accountable to the Board. In performing its duties, the Audit Committee shall maintain an efficient working relationship with the Board, the Supervisory Committee, management, and internal and external auditors, comply with applicable laws and regulations, the Articles of Association, and the requirements of these implementation rules, and accept supervision from the company's Supervisory Committee in accordance with the law.
Chapter Two Responsibilities of the Audit Committee
Article 3
The Audit Committee supervises the financial reporting process to ensure that the published financial information is fair, transparent, and true. In addition, the Audit Committee is responsible for reviewing: the effectiveness of the company's internal financial control and risk management systems; the effectiveness of the internal audit function;
- Independent audit processes — including recommendations for the appointment of external auditors and evaluation of their performance; assessment of the effectiveness of the company's internal control system.