Shenzhen Langke Technology Co., Ltd. Internal Audit Management System
Chapter 1 General Provisions
Article 1 To strengthen the company's internal management and control, promote the legality and compliance of the company's internal management behaviors, provide reliable information and basis for management's correct decision-making, protect the legitimate rights and interests of investors, and continuously improve the efficiency and effectiveness of enterprise operations, this system is formulated in accordance with the "Audit Law of the People's Republic of China," the "Regulations on Internal Audit Work of the National Audit Office," the "Listing Rules of the Shenzhen Stock Exchange for GEM Companies," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 2—Normative Operation of GEM Listed Companies," and other laws and regulations and the company's articles of association.
Article 2 Internal audit as referred to in this system means the internal audit department established within the company, which, in accordance with relevant national laws and regulations, financial accounting systems, and the company's internal management regulations, independently and objectively supervises, evaluates, and makes recommendations on the effectiveness of internal control and risk management, the truthfulness and completeness of financial information, and the efficiency and effectiveness of business operations, so as to promote the company's improvement in governance and achievement of its goals.
Article 3 Internal control as referred to in this system means the process by which the company's board of directors, audit committee, senior management, and other relevant personnel provide reasonable assurance for the achievement of the following objectives: (1) Compliance with national laws, regulations, rules, and other relevant provisions; (2) Improving the efficiency and effectiveness of the company's operations; (3) Ensuring the safety of the company's assets; (4) Ensuring the truthfulness, accuracy, completeness, timeliness, and fairness of the company's information disclosure.
Article 4 In accordance with relevant national laws, regulations, rules, and the provisions of this system, and taking into account the company's industry and production and operation characteristics, the company shall establish and improve its internal audit system to prevent and control company risks and enhance the reliability of its information disclosure.
Article 5 The company's board of directors is responsible for the establishment, improvement, and effective implementation of the internal control system. Important internal control systems shall be reviewed and approved by the board of directors. The company's board of directors and all its members shall ensure the truthfulness, accuracy, and completeness of information disclosure related to internal control.
Chapter 2 Internal Audit Institutions and Personnel
Article 6 The company shall establish an audit committee under the board of directors, formulate detailed rules for the work of the audit committee, and disclose them.
Article 7 The company's internal audit department is the internal audit department of the company, which is a special working body of the company's board of directors' audit committee, responsible for supervising and inspecting the company's business activities, risk management, internal control, financial information, and other matters. The internal audit department is responsible to the board of directors. In the process of inspecting and supervising the company's business activities, risk management, internal control, and financial information, the internal audit institution shall accept the supervision and guidance of the audit committee. The audit committee participates in the performance appraisal of the head of internal audit.
Article 8 The company shall allocate full-time personnel to engage in internal audit work in accordance with the company's scale, production and operation characteristics, and relevant regulations. The expenses required for the internal audit institution to perform its internal audit duties shall be included in the company's budget.
Article 9 The head of the internal audit department shall be a full-time internal auditor, nominated by the audit committee and appointed or removed by the board of directors.