We have been entrusted to audit the financial income and expenditure and assets and liabilities of your company from January 1, 2000 to April 30, 2003 for the purpose of liquidation and disposal of your company. Your company is responsible for the authenticity and completeness of the accounting information provided, and it is our responsibility to express an audit opinion. We conducted our audit in accordance with the Standards on Independent Auditing for Certified Public Accountants in the People's Republic of China. In the course of our audit, we have carried out such audit procedures as we considered necessary in the light of the actual situation of your company, including the sampling of accounting records.

First, the basic situation

Your company in 1998 xx months xx receive xx-xxx-xxx-xxx-x business license, registered capital of 2.75 million yuan, the legal representative of xx-x, the scope of business: the sale of communications equipment, contracted communications engineering design, construction, communications equipment maintenance, automotive maintenance, property management; catering and entertainment, career Intermediary, communication information services; interior decoration, industrial and civil construction projects.

Your company consists of communication equipment branch, communication engineering branch, property management branch, communication engineering design branch, construction engineering branch. In April 2001, the construction branch was canceled.

Second, the audit

(a) financial income and expenditure

1, income

January 1, 2000 to April 30, 2003, your company achieved cumulative sales revenue of 147,054,009.46 yuan, of which in 2000 to achieve sales revenue of $ 72,526,202.29, 2001 realize sales revenue of 67,487,365.46 yuan, 2002 realize sales revenue of 6,636,173.51 yuan, January to April 2003 realize sales revenue of 404,268.20 yuan.

The revenue consisted of: ① communication engineering and design revenue of RMB 34,087,848.26, ② equipment sales revenue of RMB 111,579,734.68, ③ property management revenue of RMB 250,590.60, and ④ commissioned income of RMB 1,135,835.92.

2.

2. Costs and expenses

From January 1, 2000 to April 30, 2003, your Company incurred a cumulative cost of sales of RMB129,447,433.49, operating expenses of RMB6,155,423.65, administrative expenses of RMB5,558,272.94, finance costs of RMB-204,072.14, taxes and surcharges on principal activities of RMB1,731.60, RMB1,135,835.92, and RMB1,135,835.92 on commission. surcharge 1,731,217.02 yuan, net non-operating income and expenses 465,371.54 yuan, income tax 2,123,677.78 yuan.

Cost of sales consisted of: (1) communication engineering and design costs of RMB29,272,638.82, (2) equipment sales costs of RMB99,032,073.54, (3) property management costs of RMB92,064.50, and (4) entrusted agency costs of RMB1,050,656.63.

3. Profit Realization

From January 1, 2000 to April 30, 2003, your Company has accumulated net profit of RMB 3,623,055.73 Yuan. Of which: ① Net profit of 3,988,783.46 Yuan was realized in 2000, ② Net profit of 630,414.82 Yuan was realized in 2001, ③ Net profit of 322,925.97 Yuan was realized in 2002, and ④ Net profit of -1,319,068.52 Yuan was realized from January to April, 2003.

(II) Assets, Liabilities and Owners' Equity

1. Assets

As of April 30, 2003, the total assets of your company amounted to RMB 21,213,892.78 Yuan. Of which: currency funds of RMB 428,431.46, accounts receivable of RMB 7,127,652.12, other receivables of RMB 3,103,547.00, provision for bad debts of RMB 1,351.68, long term investments of RMB 2,000,000.00, fixed assets with an original value of RMB 1,838,418.70 and a net value of RMB 1,368,780.52, land use rights of RMB 5,386,892.78, land use rights of RMB 5,386,780.52, land use rights of RMB 5,386,780.52, land use rights of RMB 5,386,780.52, and land use rights of RMB 5,386,780.52, and land use rights of RMB 5,386,780.52. The net value is 1,368,780.52 yuan, and the land use right is 5,386,833.25 yuan.

A detailed list of fixed assets, accounts receivable and other receivables is attached.

2. Liabilities

As on April 30, 2003, your Company had total liabilities of ` 12,560,076.12 lacs. Of which: Accounts Payable $4,270,229.53, Welfare Payable $228,774.18, Unpaid Taxes $86,905.45, Other Accounts Payable $3,093.01, Other Accounts Payable $7,971,073.95.

The breakdown of accounts payable and other payables is attached.

3. Owners' Equity

As of April 30, 2003, the total owners' equity of your Company was ` 8,653,816.66 lacs. Of this, paid-up capital amounted to RMB 2,180,000.00, capital surplus amounted to RMB 3,121,365.37, surplus reserve amounted to RMB 906,061.96 and undistributed profit amounted to RMB 2,446,389.33.

The formation of capital surplus: ① January 1, 2000 to April 30, 2003 to increase the capital surplus of 3,037,952.31 yuan, are the amount of income tax exemption, ② carry forward from 1999, 83,413.06 yuan, is the legacy of the Department of Labor Services.

The formation of surplus reserves: ① January 1, 2000 to April 30, 2003 increased surplus reserves of 874,537.28 yuan, are extracted from profits, ② 1999 carry-over of 31,524.68 yuan, is the legacy of the Department of Labor Services.

Third, there are problems

1, as of April 30, 2003, payables in the payroll balance of $ 4,651,107.52, trade union funds of $ 248,164.48, education expenses of $ 202,632.60, labor insurance premiums of $ 1,102,819.53, welfare costs of $ 147,168.00, * * * * counting 6,351,892.13 Yuan. After the audit, it was calculated from the cost from 1999 to April 2003, in which most of the wages payable were calculated at the rate of RMB 800/month/person, which was not sufficiently based on the basis of calculation, and did not correspond to the actual payment situation.

2. As of April 30, 2003, there was a balance of RMB155,254.77 in the accounts receivable for personal income tax. After audit, it is the income tax paid by your company on behalf of employees. According to the tax law and accounting system, it should be accounted for according to the personal income tax law.

3. As of April 30, 2003, the paid-in capital is 2,180,000.00 Yuan and the registered capital of business license is 2,750,000.00 Yuan, which are inconsistent.

Fourth, the audit opinion

1, we believe that, in addition to the impact caused by the above issues, your company from January 1, 2000 to April 30, 2003 tabulated financial income and expenditure and assets and liabilities in significant respects in line with enterprise accounting standards and the "Post and Telecommunications Communications Enterprises Accounting System".

2. The problems mentioned in the audit report are dealt with in accordance with the provisions of the relevant regulations and systems.

Attachment: 1, April 30, 2003 balance sheet;

2, January 1, 2000 to April 30, 2003 profit and loss account;

3, fixed assets schedule;

4, accounts receivable and other receivables schedule;

Company financial audit report [Article 2]

abc Corporation:

We have audited the accompanying financial statements of abc Corporation (hereinafter referred to as abc Corporation), which comprise the balance sheet as of December 31, 200, the income statement, the statement of changes in stockholders' equity, and the statement of cash flows for the year ended December 31, 200, and the notes to the financial statements.

I. Management's Responsibility for the Financial Statements

It is the responsibility of the management of abc company to prepare the financial statements in accordance with the provisions of the enterprise accounting standards and the Enterprise Accounting System. This responsibility includes (1) designing, implementing and maintaining internal control relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error; (2) selecting and applying appropriate accounting policies; and (3) making reasonable accounting estimates.

II. Responsibilities of the Certified Public Accountants

Our responsibility is to express an opinion on the financial statements based on our audit performed. We conducted our audit in accordance with the Chinese Standards on Auditing for Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing audit procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The audit procedures selected depend on the CPA's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control

. An audit also includes evaluating the appropriateness of accounting policies selected and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for the audit opinion.

III. Audit Opinion

In our opinion, the financial statements of abc have been prepared in accordance with the Accounting Standards for Business Enterprises and the Accounting System for Business Enterprises, and present fairly, in all material respects, the financial position of abc as at December 31, 200, and the results of its operations and its cash flows for the year ended December 31, 200, respectively.

Certified Public Accountant of China:

Certified Public Accountant of China:

China February 2000

Sample Financial Audit Report of a Company [Part 3]

I. Basic Situation

The company is a comprehensive producer of cement and clinker of our group, with one clinker production line with an annual output of 1 million tons, and one cement grinding mill each with an annual output of 500,000 tons. The company has one clinker production line with an annual capacity of 1 million tons and one cement mill with an annual capacity of 500,000 tons. The factory covers an area of more than 200 mu, with nearly 200 employees.

The paid-in capital of the company is 41.46 million yuan, of which 39.46 million yuan, or 95.18%, is invested by Shandong Shanshui Cement Group Co. and 2 million yuan, or 4.82%, is invested by Shuangyashan New Era Cement Co. The internal audit is based on the "Shandong Shanshui Cement Group Limited Accounting Policies, Financial Management System and Financial Accounting Management Specification" (Draft for Approval) and the Group's relevant systems and regulations, and with reference to the enterprise accounting standards implemented since January 1, 2015, "General Principles of Enterprise Finance", as well as the relevant laws and regulations, etc..

II. Issues Identified in the Audit

(I) Currency Fund Cycle

1. The cash inventory was entered on May 17, 2015 and conducted immediately. At the time of the inventory, the cash book balance of $11,306.94, unrecorded revenue documents $318,772.16, unrecorded expenditure documents $289,490, adjusted book balance of $40,589.10 should be deposited. Inventory of the actual cash of $19,090.70, the difference with the book amount of $21,498.4, of which, white goods against the Treasury $21,500. Inventory surplus cash 1.6 yuan, after inquiring the cashier staff change of post handover of the legacy of the difference and the usual cash receipts and disbursements due to zero.

2, there are incompatible positions in the control process of monetary funds are not separated, the cashier is responsible for the receipt and payment, billing, bookkeeping.

3, the bank seal and checks are not separated, or separation is virtually non-existent. Audit found that the cashier filled out a bank check directly in the drawer of the accountant in charge of extracting and stamping the bank seal. Checks are not

by the accountant in charge of the audit process, the separation of the seal is virtually non-existent.

4, the bank balance reconciliation statement prepared by the cashier itself, the formation of "self-accounting self-adjustment", not in line with internal control norms.

5, in the cash management is not standardized, there is the phenomenon of white goods against the warehouse, such as the refund of invoices for goods is not timely account processing.

6, part of the cash payment business is not timely account processing, the use of borrowing is not clear.

7, the cash account does not match, and the reason can be traced back to the cashier position handover, cash long and short payments are not timely and appropriate processing.

(B) sales and collection cycle

1, from a random sample of '21 cement sales contracts found that there are contract signing irregularities:

(1) did not fill in the contract number;

(2) 17 contracts did not fill in the number;

(3) according to the Group's provisions of the sale of cement shall not be on credit, but the sales contract signed by the "goods" on the sales contract. Sales contracts on the "payment on delivery" or "deferred payment" clause. Upon inquiry, the salesman advances funds for business development and then collects the money. On the surface of the risk shifted to the salesman, in fact, not. Because the subject of the contract is still the company itself, and the salesman and the customer to form a single line of contact, large sums of money by the transfer of personal hand, it is easy to be involved in litigation matters, the formation of potential risks, and in the financial reconciliation links to cause confusion.

(C) Procurement and payment cycle

From the audit of "prepaid accounts" in the non-performing assets, it can be seen that the company's purchasing staff and the supplier single line of contact, the procurement department of the supplier information did not establish the corresponding information ledger, resulting in the departure of the staff, and the supplier can not be contacted, the payment or invoice can not be obtained. could not be obtained. At the same time, it is easy to form disputes, constituting a potential litigation risk.

(iv) Production cycle

The Company's cost accounting method utilizes a combination of step-by-step and variety methods. *** It is divided into five sections: crushed stone, raw materials, clinker, cement and packaging. The products are mainly clinker and cement.

After review, the auxiliary production costs mainly include material supply and electric repair, the costs of which are summarized by "production costs - auxiliary production costs", and laboratory costs are summarized by "manufacturing costs". The above costs are allocated to the basic production costs of clinker and cement sections at a fixed ratio (60% for clinker and 40% for cement). The cost of electricity consumption is allocated according to the number of meter readings in each workshop, and the difference between the power supply bureau and the total number of meter readings is accounted for in "administrative expenses" and is no longer allocated.

Regarding the allocation of auxiliary production, laboratory costs and electricity costs, the allocation methods adopted by the subsidiaries of the Group are inconsistent and lack of scientific and convincing basis, which also results in the comparison of costs and expenses between subsidiaries of the Group not being on the same starting line, thus losing its rationality.

Material accounting, currently using the actual cost method. At the end of the month, the materials are temporarily estimated in the inventory accounting, the next month the red word back. Bulk materials are basically calculated according to the fixed unit price of the provisional amount. After sampling five higher unit price or consumption of bulk materials, its provisional accounting basically follow the consistency, but the basis for determining the provisional unit price is a fixed unit price, not adjusted according to the contract price or purchase price, etc., the provisional estimate of the unreasonable difference in the price of the factors borne by the current cost.

After a sample inventory of expendable materials on May 22, 2015, there was an inconsistency between the carrying amount of the warehouse department and the finance department. The reasons for the discrepancy are mainly due to errors in the provisional unit price, material cascade warehouse or voucher transmission errors. Upon inquiry, the current warehouse parallel two systems and a set of manual accounts, warehouse staff is too small (only three people), the workload is large, coupled with the group listing to prepare for the audit with information, so the reconciliation link is ignored.

From the average purchase price of bulk materials in 2015, the overall trend of price increases, fly ash, slag, limestone, raw coal and several other materials are particularly obvious, of which: fly ash rose by 80%, slag rose by 14.2%, limestone rose by 25.68%, raw coal rose by 5.1%. Secondly, the increase in overhaul costs in FY2015 also contributed to one aspect of the increase in costs. And the comparison of the selling price of cement and clinker from 2015 to 2015 shows a slight decrease overall.

The consumption of bulk raw fuel materials is determined by using a field inventory system "to squeeze consumption by storage", inventory methods such as visual measurement of feet, etc., and the results of the inventory are adjusted accordingly with reference to the results of the ratios provided by the laboratory. After a sample check in July and December of the proportion of laboratory results and measurements, and the corresponding material consumption checking consistent.

The use of the field inventory system to squeeze the consumption of storage, measurement accuracy is low, the data can be adjusted, the cost control is not strict, to cover up the production and management problems, so that the cost analysis and assessment of data distortion. The "KPMG" audit questioned the focus, and paid a great cost for it.

This issue is to be further studied in future audits.

(E) Long-term investments

As of December 31, 2015, the balance of long-term investments was 29 million yuan. After understanding, the investment is the group company's direct transfer and adjustment arrangements behavior, in 2003, respectively, to invest in Weifang Shanshui 5 million yuan and invest in Qingdao Huangdao Shanshui 24 million yuan in the name of the transfer of 29 million yuan, innovation company did not see the relevant investment agreements and contracts, the investment is not clear, resulting in innovation company long-term investment "in name only" false accounts. "The false accounts.

In the environment of the Group's upcoming listing, the relationship between the assets and interests should be clarified to avoid unnecessary external audit questions.

(F) Fixed Assets

1. The department that manages and uses the asset has not established a fixed asset ledger, has no fixed asset card, and has not managed the asset by number.

2, the use of assets in the department did not specify the fixed assets responsible person.

3, not in accordance with the provisions of the annual inventory of fixed assets, no annual fixed asset inventory records, no monthly fixed asset sampling records.

4, part of the fixed assets classification is unreasonable, and affect the reasonableness of depreciation. According to the Group's regulations, office equipment should be depreciated over 5 years, but some of the office equipment of the Innovation Company is categorized as electrical equipment and depreciated over 10 years according to the depreciable life of electrical equipment. The company intends to adjust accordingly in 2015.