[Purpose of financial statement audit report]

The purpose of audit report includes the following aspects:

1. Improve the trust of the expected users of the report on the accounting statements;

2. To meet the needs of internal and external users for submission, which is usually provided to shareholders or investors of the company, superior departments and government agencies;

3. Relevant annual inspection needs. Such as: Administration for Industry and Commerce, Administration of Foreign Exchange, Tax Bureau, Customs, Finance Bureau, Commerce Commission, Statistics Bureau, etc.

4. Meet the needs of special purposes. For example, in the process of M&A, in order to avoid the financial and tax risks of the acquirer, a comprehensive financial due diligence was conducted on the acquired enterprise.

Financial Statement Audit Process

An audit usually goes through the following steps from business undertaking to completion:

1. The accounting firm and the client have preliminary communication and understanding to determine the audit purpose, audit scope, audit fees, etc; And sign the business agreement;

2. The accounting firm arranges the project team to issue the list of materials prepared by the client for audit;

3. The auditee shall prepare relevant audit data according to the data list and determine the time for on-site audit.

4. On site audit stage;

5. Summarize the audit situation and form the first draft of the audit report;

6. Exchange opinions with the auditee;

7. Issue a formal audit report.

[List of Audit Data of Financial Statements]

1、 Financial data:

1. Financial Statements and Notes

2. All accounts

3. Accounting voucher

4. Electronic Chart of Account Balances - Opening, Closing and Cumulative Amounts from Level 1 to End Level

5. Bank Deposit Statement and Balance Reconciliation Statement

6. Property right certificate of house and vehicle

7. Long and short term investment, investment agreement, business license of the investee, and accounting statement of the investee

8. Long and short term loan contracts, mortgage guarantee information

9. Fixed Assets Depreciation Table

10. Inventory counting table

11. Tax Return and Payment Certificate

12. Invoice Usage Summary

13. Transaction Details

2、 Data for future reference:

1. Business license and account opening permit

2. Tax Registration Certificate

3. Organization code certificate (only business license is required for three certificates in one)

4. Articles of Association and Agreement

5. Capital Verification Report on Establishment and Change

6. Previous annual audit report

7. Financial accounting system and relevant internal control system

8. Documents such as major resolutions of the shareholders' meeting and the board of directors