Investor Relation

Internal Audit

Daxin’s internal Auditing Administration Division report to the Board of Directors directly. We select the appropriate audit staff according to corporate size, business conditions, requirements of management and other relevant regulations. In addition to making audit reports to the Board of Directors at regular meetings, reporting also takes place monthly or whenever necessary to the Chairman of the Board and the Auditing Committee.

Daxin follows the law to establish an internal control system. Based on the system, the Auditing Administration Division stipulates the internal audit implementation details. Following this, the control systems and procedures are implemented, with their effectiveness and observance evaluated. The scope of the audit includes the whole company and its subsidiaries.

Audit affairs primarily involve the execution of the audit plan developed by the Board of Directors with identified risk, and the implementation of audit projects or reviews if required. The execution of general and project audit plans can provide finely synchronized the operational status of the internal control system to the management, and help them identify existing weaknesses or potential risks in a timely manner.

The Division audits the self-examinations completed by the various units and subsidiaries, including checking how self-examination is executed, reviewing documents to ensure implementation quality, and compiling self-examinations results. Consequently, the internal audit system reports to the President and Board of Directors as the basis to evaluate the effectiveness of the overall internal control system, and issue the internal control system statement.

According to the Article 3 of the company's “Corporate Governance Principles”, appointment, dismissal, evaluation and review, salary and compensation of internal auditors of company shall be submitted by the chief auditor to the Chairman for approval, and the performance is reviewed at least once a year. The relevant regulations have been disclosed in the Corporation's website.