Chapter 1 General Principles
Article 1
To further standardize the internal audit work of Beijing Jinyi Cultural Development Co., Ltd. (hereinafter referred to as "the Company"), improve the quality of internal audits, strengthen internal management and supervision, enhance corporate management levels, and protect the legal rights of the Company and all shareholders, this system is formulated based on relevant laws and regulations, including the Audit Law of the People's Republic of China, the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, and other relevant normative documents.
Article 2
The term "internal audit" in this system refers to the independent, objective supervision, evaluation, and recommendations conducted by the audit department regarding the legality, compliance, and effectiveness of the Company's and its subsidiaries' financial expenditures, economic activities, internal controls, and risk management, aimed at promoting corporate governance and achieving objectives.
Article 3
The term "internal control" in this system refers to the process provided by the Company's board of directors, senior management, and other relevant personnel to ensure reasonable assurance in achieving the following objectives: (1) compliance with national laws, regulations, and other relevant provisions; (2) improving operational efficiency and effectiveness; (3) safeguarding the security of Company assets; (4) ensuring the truthfulness, accuracy, completeness, and fairness of the Company's information disclosure.
Article 4
The Company shall establish and improve its internal audit system in accordance with national laws, regulations, and guidelines, combined with the characteristics of its industry and operations, to prevent and control risks and enhance the reliability of information disclosure. The internal audit system shall be reviewed and approved by the board of directors.
Article 5
The board of directors shall be responsible for the establishment and effective implementation of the internal control system, and significant internal control systems shall be reviewed and approved by the board of directors. The board of directors and all its members shall ensure the truthfulness, accuracy, and completeness of the information disclosed regarding internal controls. The audit department, as the internal audit department of the Company, shall conduct systematic reviews, verifications, evaluations, and supervision of the authenticity, legality, and effectiveness of the financial expenditures and economic activities of all departments, branches, and subsidiaries of the Company under the direct leadership of the audit committee of the board of directors.
Chapter 2 Audit Institutions and Personnel
Article 6
The Company shall establish an audit committee under the board of directors to comprehensively lead the Company's audit supervision work, formulate and disclose the rules of procedure for the audit committee.
Article 7
The audit department of the Company, composed of the department head, project managers, and auditors, shall supervise and inspect the Company's business activities, risk management, internal controls, and financial information. The audit department is directly under the audit committee of the board of directors and is responsible to it.
Article 8
The audit department shall independently exercise its audit supervision rights according to relevant regulations, shall not participate in the Company's normal economic activities, and shall not be interfered with by other departments, units, or individuals, maintaining the independence, impartiality, and authority of the internal audit institution.
Article 9
The Company shall allocate dedicated personnel for internal audit work based on its scale, operational characteristics, and relevant regulations, with no fewer than three dedicated personnel.
Article 10
The head of the internal audit department must be a full-time position, nominated by the board of directors or its specialized committee, and appointed or dismissed by the board of directors. The Company shall disclose the educational background, professional title, work experience, and any relationships with the Company's controlling shareholders and actual controllers of the head of the internal audit department.