First, the five elements of internal control

1. control environment: the control environment is the basis of the internal control of the unit, including the unit governance structure, organizational structure, power and responsibility distribution, employee professional ethics, unit culture, anti-fraud mechanism, etc. The quality of control environment directly affects the implementation effect of unit internal control.

2. Risk assessment: Risk assessment refers to the identification, assessment and response to the potential risks of the unit. Units should establish and improve the risk assessment mechanism, timely discover and assess possible risks, and take corresponding measures to deal with risks.

3. Control activities: Control activities refer to various control measures taken by the company to achieve internal control objectives, including authorization approval, accounting system, property protection, separation of incompatible duties, etc.

4. Information and communication: Information and communication refers to the timely acquisition, transmission, processing and reporting of relevant information in the process of internal control, so as to ensure the smooth flow of information among all levels within the unit and with external interested parties.

5. Supervision and monitoring: Supervision and monitoring refers to the supervision and inspection of the implementation of internal control in this unit to ensure the effectiveness of internal control. Supervision and monitoring include internal audit, internal supervision and external audit.

Second, the content of internal control

1. control environment and organizational structure: establish a sound governance structure, clarify the power and responsibility relationship between the board of directors, the board of supervisors and the management, and ensure that the board of directors can effectively play its supervisory role. Establish and improve the organizational structure, clarify the responsibilities and authority of each department and post, and ensure the efficient operation of the organization.

2. Distribution of power and responsibility and ethics: define the responsibilities and authority of managers and employees at all levels, ensure that the responsibilities do not overlap and exceed the authority, and avoid the situation of power vacuum and unclear responsibilities. Strengthen the professional ethics education of employees, improve their moral quality, and ensure that employees abide by laws, regulations and professional ethics.

3. Unit culture and anti-fraud mechanism: establish a positive and healthy unit culture, create a good working atmosphere, and enhance employees' sense of belonging and responsibility. Establish a perfect anti-fraud mechanism to prevent the occurrence of employee fraud and protect the legitimate rights and interests of the unit.