What is an Auditor's Report?
An annual audit report is a written document issued by an accounting firm in accordance with the Auditing Standards for Chinese Certified Public Accountants on the legality and fairness of a company's financial statements for a fiscal year based on the audit work.
Annual audit report
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An annual audit report is a written document issued by an accounting firm in accordance with the Auditing Standards for Chinese Certified Public Accountants on the legality and fairness of a company's financial statements for a fiscal year based on the audit work.
Usually used for industrial and commercial annual inspection, corporate bidding,
I. Company Overview
(1) Briefly introduce the legal Chinese and English names of the company, the company's legal representative, general manager or president, registered capital, registered address, office address, telephone and postal code.
(2) Briefly introduce the historical evolution of the company, the main functional departments, and the number and age of employees, education background, and title structure.
(3) Briefly introduce the company's business department, including the name, address, person in charge, number of employees, establishment time, working capital and contact phone number of each business department. If the sales department is increased or decreased during the year, briefly explain the reasons for its new establishment or cancellation.
(4) Name, contact address, telephone, fax, e-mail address, etc. of the person in charge and contact person of the company's annual report.
Operation
(I) Brokerage
(II) Main financial indicators
1. Financial indicator
project | Year number | Year-end number | Percent change |
Asset-liability ratio current ratio Ratio of net assets to registered capital Net asset risk ratio Working capital Long-term investment ratio Fixed capital ratio Adjusted net assets | | | |
Note: = Net assets / registered capital
= Adjusted net assets / customer margin
= Current assets (excluding futures assets)-current liabilities (excluding futures liabilities)
Futures assets include margin deposits, margin receivables, customer pledges, receivables, risk reserve assets, settlement differences, etc .; futures liabilities include margin payables, delivery payables, risk reserves, etc.
= long-term investment / net assets at the beginning or end of the period
= (net fixed assets + construction in progress) / paid capital at the beginning or end of the period
= Net assets + risk reserve-accounts receivable with an age of more than one year-pending expenses-net fixed assets-intangible assets-start-up costs and long-term deferred expenses
2. Indicators of operating results
project | Last year | Years | Percent change |
Return on net assets Return on assets Operating expense ratio | | | |
Note: = 2 × net profit / (net assets at the beginning of the period + net assets at the end of the period)
= 2 × net profit / (total assets at the beginning of the period + total assets at the end of the period)
= operating expenses / operating income
Audit opinion
The audit report must be issued by an accounting firm qualified for securities and futures related business and two or more certified accountants who perform securities and futures related business. The audit opinion must be stamped and signed by the accounting firm and a certified public accountant (the original audit opinion should be submitted and not photocopied). The company is responsible for submitting the annual report materials formally submitted to the CSRC to the accounting firm engaged by it. All accountants' responsibilities review whether the financial accounting information (including the accounting statements and notes to the accounting statements) provided by the company to the CSRC is consistent with The financial accounting information that the certified public accountant has issued the audit opinion is consistent.
If the accounting firm that performed the audit issued an audit report explaining the company's unqualified opinion, qualified opinion, inability to express an opinion or negative opinion, the company's board of directors should make a detailed explanation of relevant matters.
Fourth, accounting statements
The preparation of accounting statements shall comply with the provisions of the Accounting Standards for Business Enterprises, relevant financial accounting systems and other laws and regulations.
The accounting statements include the company's comparative balance sheet at the end of the reporting year and the end of the previous year, the comparative profit statement for the two years, the comparative profit distribution statement, and the cash flow statement.
V. Notes to accounting statements
The notes to the accounting statements are an essential part of the financial report. It includes all the information related to the company's financial position, operating results and cash flow, which helps the users of the statements to better understand the important information of the accounting statements. The company's accounting statement notes should at least include the following:
(I) The company's main accounting policies and accounting estimates
1. accounting system.
2. Fiscal year.
3 Accounting standard currency.
4 Accounting basis and pricing principles.
5. Basis of preparation of accounting statements.
6. Fund management and transaction clearing principles of the sales department.
7. Accounting methods for foreign currency business. Explain the exchange rate used when foreign currency transactions occur, the exchange rate used to convert foreign currency balances in foreign currency accounts at the end of the period, and the method of handling exchange differences.
8. Bad debt accounting method. Explain the standards for the identification of bad debts, the method and proportion of provision for bad debts, and the accounting method for bad debt losses.
9. Management and accounting methods of client margin.
10 Management and accounting methods of pledges.
11. Accounting method for physical delivery.
12. Management and accounting methods of risk reserve assets.
13. Accounting differences settlement method. Recognition and accounting methods for settlement differences are explained in terms of closing profit and loss and holding profit and loss, respectively.
14. Long-term investment accounting methods. For long-term equity investment, it shall explain its valuation, income (equity) benefit recognition method and amortization method of equity investment difference; for long-term debt investment, its valuation, income recognition method and bond investment premium and discount amortization method shall be explained.
15. Fixed asset valuation and depreciation methods. Explain the standard, classification, valuation method and depreciation method of fixed assets, the estimated economic useful life, estimated net residual value rate and depreciation rate of various fixed assets.
16. The accounting method for construction in progress includes the accounting method for capitalization of interest and the time when the construction in progress is carried over to fixed assets.
17. Amortization method of intangible assets, start-up expenses and long-term deferred expenses.
18. Risk reserve accounting method. Explain the method and proportion of risk reserve, the confirmation standard and accounting method of risk loss.
19. Revenue recognition principle. Explain the company's fee income and other business income recognition methods.
20. Criteria for determining cash equivalents. Explain the company's criteria for determining cash equivalents when preparing the cash flow statement.
twenty one. If the accounting policies and accounting estimates of the current year are changed, the content, reasons and impact of the changes on the company's financial position or operating results shall be disclosed.
The CPA should pay due attention to the reasons for changes in the company's accounting policies or accounting estimates. If the reasons for the change are unreasonable or insufficient, the CPA should not issue an audit opinion that the company's financial report meets the requirements of legality, fairness, and consistency.
(2) Taxation
The main taxes and tax rates should be disclosed, such as value added tax and income tax. If there is a tax reduction or exemption, the approval authority, document number, extent of exemption and expiration date shall be stated.
(III) Notes on main items of accounting statements
The company should at least disclose the following item notes of the accounting statements (summarizing the accounting statements after the sales department) (if the data changes in the two periods have exceeded 50%, the reason for the increase or decrease should be clearly stated under this item).
(4) Contingencies
For contingencies existing at the balance sheet date (such as litigation, arbitration, etc.), the nature and amount of the project and the impact on the company's financial position and operating results after the reporting period should be explained in the notes to the accounting statements.
(V) Commitments
For major commitments that exist on the balance sheet date (such as the amount of external guarantees, etc.), the existence, amount, and impact should be explained.
(6) Non-adjusting matters in the events after the balance sheet date.
Any non-adjusting matters (such as huge losses, suspension of business and rectification, serious violations of regulations, etc.) involving matters after the balance sheet date should be disclosed in accordance with the requirements of the Accounting Standards for Business Enterprises-Events after the Balance Sheet Date.
Six other important matters
1. Brief introduction to the shareholders 'meeting or shareholders' meeting, board meetings, and board meetings during the reporting period.
2. Brief introduction of changes in company name, registered address, legal representative, directors, supervisors and senior management.
3 Penalties this year. Disclose the records of the company and the managers above the middle level being inspected and punished by the government management departments at all levels.
4 Employment and replacement of accounting firms. If there is a change of accounting firm, the reason and basis for the change shall be explained, and the audit fees (indicating whether it includes travel expenses, etc.) in the current year shall be disclosed.
5. The salary of senior management personnel (including various allowances, subsidies, etc.), the distribution of bonuses, and the average salary level of company employees.
6. Explanation of other major matters.
