Shiyue Daotian Group Co., Ltd. issued details on the terms of reference for its Board Audit Committee. According to the document, the committee has three non-executive directors, with independent non-executive directors forming the majority and at least one possessing professional accounting expertise. The committee reports directly to the Board and is mandated to oversee the appointment of external auditors, examine the company’s financial statements, coordinate internal and external audits, and supervise risk management and internal controls.

The Terms of Reference outline that the Audit Committee will advise the Board on the re-appointment or replacement of external auditors, ensure auditors’ independence, evaluate relevant audit strategies, and confirm that accounting practices meet legal, regulatory, and listing requirements. Regarding financial disclosures, the committee must focus on significant judgments, any major adjustments, and going-concern assumptions, while also monitoring immediate correction of any financial reporting issues.

The committee is authorized to engage independent consultants as needed and holds quarterly regular meetings, with additional sessions convened upon request. Decisions require a majority vote, and meeting minutes must be retained in written form. Members are required to keep all reviewed matters confidential, and they must abstain from voting on issues where conflicts of interest may exist.

These guidelines also specify oversight of annual report procedures. The Audit Committee will coordinate timelines with the external auditor, review financial statements, and present the final financial results to the Board. If the company proposes changing its external audit partner during the reporting period, the committee will hold discussions with both the incumbent and prospective auditors and present findings to the Board. The Terms of Reference become effective upon approval by the Board and remain aligned with applicable laws and the Articles of Association.