Chapter 1 General Principles
Article 1
To further standardize the internal audit work of Kairuide Holdings Co., Ltd. (hereinafter referred to as "the Company"), clarify the responsibilities of the internal audit organization and personnel, ensure audit quality, clarify audit responsibilities, promote operational management, and improve economic efficiency, this system is formulated in accordance with the "Audit Law of the People's Republic of China," "Regulations on Internal Audit Work by the National Audit Office," "Shenzhen Stock Exchange Listing Rules," "Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange," and other relevant laws, regulations, and normative documents, as well as the provisions of the "Articles of Association of Kairuide Holdings Co., Ltd." This system applies to the Company, its holding subsidiaries, branches, and significant equity investees.
Article 2
The term "internal audit" in this system refers to the internal audit department or auditors conducting supervision and evaluation of the establishment and implementation of the internal control system of the Company and its holding subsidiaries, the authenticity and completeness of financial information, and the authenticity, legality, and effectiveness of economic activities related to asset quality, operational performance, and significant projects, based on relevant national laws and regulations, financial accounting systems, and internal management regulations.
Article 3
The term "internal control" in this system refers to the process by which the Company's board of directors, board of supervisors, senior management, and other relevant personnel provide reasonable assurance to achieve the following objectives:
- Compliance with national laws, regulations, rules, and other relevant provisions;
- Improvement of the efficiency and effectiveness of the Company's operations;
- Safeguarding the security of the Company's assets;
- Ensuring the authenticity, accuracy, completeness, and fairness of the Company's information disclosure.
Chapter 2 Internal Audit Organization and Personnel
Article 4
The internal audit department is the internal audit organization of the Company, led by the Company's audit committee, which independently exercises internal audit supervision rights in accordance with national laws, regulations, and policies as well as the Company's rules and regulations, to inspect and supervise the authenticity and completeness of the Company's financial information and the establishment and implementation of the internal control system.
Article 5
The internal audit department shall maintain independence and shall not be under the leadership of the financial department or share office space with the financial department. The audit committee supervises and evaluates the internal audit work. The internal audit department is accountable to the audit committee and reports its work to the audit committee.
Article 6
The internal audit organization shall have one head and several auditors. The head of the internal audit department must be a full-time position, nominated by the audit committee and appointed or removed by the board of directors.
Article 7
Internal auditors should possess good political qualities and the necessary professional knowledge and business capabilities in accounting, auditing, and other relevant fields.
Article 8
Internal auditors shall conduct audit matters objectively, fairly, truthfully, and with integrity. Internal auditors exercise their powers in accordance with the law and are protected by law; no department or individual may refuse, obstruct, or retaliate against them. All internal organizations or functional departments of the Company, holding subsidiaries, and significant equity investees shall cooperate with the internal audit department in performing its duties and shall not hinder the work of the internal audit department.