This excerpt taken from the NTES 20-F filed Jun 26, 2007.
I. Complaints reported to the Audit Committee
1. Receipt of Complaint. Upon receiving a concern or complaint regarding Accounting Matters, corporate fraud or violations of law, the Audit Committee member named
below will promptly notify the Chairperson of the Audit Committee of such concern or complaint.
The Chairperson of the Audit Committee will, depending upon the apparent urgency of the matter, call a meeting of the Audit Committee or add the complaint to the agenda for discussion at the next regularly scheduled Audit Committee meeting. The Audit Committee will acknowledge, when possible, receipt of the complaint to sender.
2. Review of Complaint by Audit Committee. Every complaint received pursuant to these procedures shall be reviewed by the Audit Committee or its designees (which may include Management of the Company) to determine whether the concern or complaint raises, or may raise, a material concern about accounting matters, internal control weakness, corporate fraud or violations of law. If yes, then the Audit Committee or its designees will conduct an investigation as stated in step 3 below. If not, then the Audit Committee may delegate it to the Management to address the complaints as appropriate. The Management will record the complaint in a register and ensure that there are adequate documentary evidences to support that the complaint is addressed satisfactorily. Where a complaint appears to relate to a material accounting matter, internal control weakness, corporate fraud or violation of law but is not sufficiently detailed and/or supported by facts or evidence to permit an investigation to be conducted, the Audit Committee or its designees shall engage in a reasonable effort to obtain sufficient detail and/or factual support to permit an investigation to proceed.
3. Investigation. The Audit Committee or its designees must investigate complaints received pursuant to these procedures that raise, or may raise, a material concern about an accounting matter, internal control weakness, corporate fraud or violation of law. In connection with any investigation, the Audit Committee or its designees, to the extent it deems necessary or appropriate, may retain or consult with independent auditors or outside legal counsel. Depending on the nature and seriousness of the issues that may arise in the course of such investigation, the Company cannot promise anonymity to persons who participate in any investigation.
4. Action Following Investigation. Following the investigation of each concern or complaint received pursuant to these procedures, the Audit Committee shall review the results of the investigation and shall communicate its findings, conclusions and recommendations to the Board of Directors. The Board of Directors shall consider and implement such recommendations, as it deems necessary or appropriate, to address any identified concerns.