Zhejiang Rongtai (603119): Zhejiang Rongtai Electrical Equipment Co., Ltd.’s evaluation report on the accounting firm’s performance of duties in 2023 – CFi.CN China Finance Network

Original title: Zhejiang Rongtai: Zhejiang Rongtai Electrical Equipment Co., Ltd.’s evaluation report on the accounting firm’s performance of duties in 2023

Zhejiang Rongtai Electrical Equipment Co., Ltd.
Evaluation report on the accounting firm’s performance of duties in 2023

In accordance with the “Company Law of the People’s Republic of China”, “Administrative Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies”, “Stock Listing Rules of the Shanghai Stock Exchange”, “Self-Discipline Supervision Guidelines for Listed Companies of the Shanghai Stock Exchange No. 1 – Standardized Operations” and The “Articles of Association of Zhejiang Rongtai Electrical Equipment Co., Ltd.” and other relevant regulations and requirements, Zhejiang Rongtai Electrical Equipment Co., Ltd. (hereinafter referred to as the “Company”) performed the audit of Zhonghui Accounting Firm (Special General Partnership) in 2023 Evaluate the job situation. After evaluation, the company believes that the qualifications of Zhonghui Accounting Firm (Special General Partnership) are compliant and valid, and it maintains independence in performing its duties. The details are as follows:
1. Qualification conditions

2. Practice records
1. Basic information

2. Integrity record
The project partners, signing certified public accountants, and project quality control reviewers have not been criminally punished for their professional conduct in the past three years, have not been subject to administrative penalties, supervisory and management measures by the China Securities Regulatory Commission and its dispatched agencies, industry authorities, etc., and have not been subject to stock exchanges, Self-regulatory measures and disciplinary actions taken by self-regulatory organizations such as industry associations.

3. Independence
There are no circumstances that may affect the independence of Zhonghui Accounting Firm (Special General Partnership), its project partners, signing certified public accountants, and project quality control reviewers.

3. Quality management level
1. Project consultation
During the 2023 annual audit process, Zhonghui Accounting Firm (Special General Partnership) consulted with the professional and technical department in a timely manner on the company’s major accounting audit matters and solved the company’s key and difficult technical problems on time.

2. Resolve differences of opinion
Zhonghui Accounting Firm (Special General Partnership) has established a clear mechanism for resolving differences in professional opinions.

When there are unresolved professional differences of opinion between project team members, project quality control reviewers or members of the professional and technical department, the person in charge of the professional and technical department needs to be consulted. No report shall be issued until differences of professional opinion have been resolved.

During the 2023 annual audit process, Zhonghui Accounting Firm (Special General Partnership) reached consensus on all major accounting audit matters of the company, and there were no differences of opinion that could not be resolved.

3. Project quality review
During the audit process, Zhonghui Accounting Firm (Special General Partnership) implemented complete project quality review procedures, which mainly included internal review of the audit project team, independent project quality review, and professional and technical review. The internal review of the audit engagement team mainly includes a detailed review of all working papers, as well as a second level review by experienced audit team members. Detailed reviews and second-level reviews focus on the adequacy of the audit work performed, the fair presentation of the financial statements, and the appropriateness of the audit report.

4. Project quality inspection
The quality control department of Zhonghui Accounting Firm (Special General Partnership) is responsible for the supervision and rectification of the quality management system. The monitoring activities of its quality management system include: testing of critical control points of quality management; inspection of completed projects within the scope of the quality management system; independence testing of firms and individuals in accordance with the requirements of professional ethics standards; and other monitoring activities. Ensure that the project team has fully and appropriately implemented audit procedures in accordance with project quality management requirements before signing the report.

5. Quality management defect identification and rectification
Zhonghui Accounting Firm (Special General Partnership) formulates corresponding internal management systems and policies in accordance with the relevant provisions of the Certified Public Accountants’ Professional Ethics and Auditing Standards. These systems and policies constitute its complete and comprehensive quality management system. During the 2023 annual audit process, Zhonghui Accounting Firm (Special General Partnership) worked diligently and diligently, and various quality management measures were effectively implemented.

4. Work plan
During the 2023 annual audit process, Zhonghui Accounting Firm (Special General Partnership) formulated a comprehensive, reasonable, and highly operable audit work plan based on the company’s service needs and the actual situation of the audited unit. The audit work focuses on the audit key points of the audited unit, including revenue recognition, cost accounting, asset impairment, deferred income tax recognition, financial instruments, consolidated statements, related party transactions, leasing business, etc.

Zhonghui Accounting Firm (Special General Partnership) fully cooperated with the company’s audit work, fully met the company’s report disclosure time requirements, and formulated a detailed audit plan and schedule, and was able to submit various tasks on time according to the plan.

5. Manpower and other resource allocation
Zhonghui Accounting Firm (Special General Partnership) is equipped with an exclusive audit team. The core team members all have many years of experience in auditing listed companies and have the professional qualifications of Chinese Certified Public Accountants. The partners responsible for the project are all senior partners, and the project site leader is a senior senior audit project manager.

6. Information Security Management
In the employment contract, the company clearly stipulated the responsibilities and obligations of Zhonghui Accounting Firm (Special General Partnership) in information security management. Zhonghui Accounting Firm (Special General Partnership) has formulated a policy covering file management, confidentiality system, and emergency incident handling. Systematic information security control systems, such as the inspection, processing, desensitization and archiving management of sensitive and confidential information, are also considered in the process of formulating audit plans and implementing audit work, and can be effectively implemented.

7. Risk-bearing ability level
Zhonghui Accounting Firm (Special General Partnership) has good investor protection capabilities and has not accrued occupational risk funds. The cumulative compensation limit for the purchased occupational insurance is 300 million yuan. The purchase of occupational insurance complies with relevant regulations. Zhonghui Accounting Firm (Special General Partnership) has not been required to bear civil liability in any concluded civil lawsuits related to its professional practices in the past three years.

Zhejiang Rongtai Electrical Equipment Co., Ltd.
April 23, 2024

China Finance Network