In 2008, the 5 major councils in China(Ministry of Finance, National Auditing Office, as well as three major regulatory commission in securities, banking and insurance industry) promulgated the Enterprise Internal Control Basic Regulations (China SOX). According to it, all Chinese listed companies are required to comply with it from 2012. The set-up and implementation of an effective internal control system has become a must-do task for Zhongfu.
As a responsible corporate citizen, Zhongfu management realized the importance of the compliance requirement, and hired PWC to assist Zhongfu to start the necessary preparation. With PWC’s assistance, Zhongfu management will be responsible for establishing and implementing an effective internal control system. With the IA Dept taking the lead, the C-SOX project is formalized from August, 2011 and must be completed by 31 December 2011.
On 15 August 2011, a formal kick-off meeting was held in a conference room in Zhuhai Support Office to kick-start the C-SOX project. The senior management attended the meeting and participants includeGary, Simon, Denny, as well as directors from each department and all regional mayors. In the meeting, the consultants from PwC introduced the background towards C-SOX compliance, its requirements, the purpose and timetable of the project. Liz Zhao, Director of Internal Audit Dept, stressed the importance of the project and the difficult tasks which needs to be performed before 31 December 2011. She also introduced the team structure of the project steering and working committee, project scope and working methods, etc.
Gary reinforced the importance of the projects by reiterating that changes should be embraced and taken positively.
Simon expressed that the C-SOX’s substance is very similar with ISO management, both provide benefit to management improvement. C-SOX is a company-wide initiative, all ZH staff should work together and give fully support.