Xinjiang Zhongtai Chenical Co.Ltd(002092) Audit Committee of the board of directors
About ShineWing Certified Public Accountants (special general partnership)
Summary report of audit work in 2021
ShineWing Certified Public Accountants (special general partnership) (hereinafter referred to as “ShineWing certified public accountants”) audited Xinjiang Zhongtai Chenical Co.Ltd(002092) (hereinafter referred to as “the company”) in 2021, mainly to express audit opinions on the company’s annual financial statements (balance sheet, income statement, statement of changes in shareholders’ equity, cash flow statement and notes to financial statements); At the same time, express opinions on whether the special report on the annual use of raised funds prepared by the management of the company complies with the relevant provisions of Shenzhen Stock Exchange on the management of raised funds of listed companies, and whether it reflects the deposit and use of raised funds of the company as of December 31, 2021 in all major aspects; Give assurance opinions on the effectiveness of the company’s internal control related to the financial statements as of December 31, 2021.
After the annual audit, ShineWing firm issued an unqualified audit report on the annual audit conclusion of the company in writing. During the audit of ShineWing firm, according to the requirements of the CSRC and the exchange on the annual report of the audit committee of the board of directors, the audit committee and the internal audit department have followed up and cooperated. Now, the audit of ShineWing firm in 2021 is evaluated as follows:
1、 Basic information
ShineWing Certified Public Accountants (special general partnership) has conducted necessary communication with the board of directors, the board of supervisors and the senior management of the company. Through understanding the internal control of the company, the certified public accountants has signed an audit engagement letter with the company. The engagement letter stipulates that the cost of annual report audit in 2021 is RMB 2.16 million. The charging standard is determined in accordance with relevant regulations, and there are no contingent charging items.
ShineWing firm entered the company on November 8, 2021, actively carried out work in accordance with the arrangement of the audit plan, performed due diligence, and audited the annual operation of the company in accordance with the audit standards; After nearly 80 days of work, the audit team implemented the necessary audit procedures, obtained sufficient and appropriate audit evidence, and submitted an unqualified audit report to the audit committee.
2、 On the evaluation of Accountants’ compliance with the basic principles of professional ethics in the audit business of accounting firms 1. Evaluation of independence
All staff of ShineWing firm did not work in Xinjiang Zhongtai Chenical Co.Ltd(002092) and did not receive any cash and other forms of economic benefits other than the necessary fees for statutory audit; There is no direct or indirect mutual investment or close business relationship between the accounting firm and the company; There is no correlation between the members of the audit team and the decision-making level of the company. In this audit, CITIC yongzhonghe firm and its audit members have always maintained both formal and substantive independence and complied with the requirements for maintaining independence in the basic principles of professional ethics.
2. Professional competence evaluation
The audit team is composed of 31 people. The team members have the necessary professional knowledge and relevant professional certificates to undertake the audit business, can be competent for the audit work, and can also maintain due attention and professional prudence. 3、 Audit scope and evaluation of audit reports and opinions issued
1. Audit work plan evaluation
In the audit process of this year, the audit team formulated the overall audit strategy and specific audit plan and plan through preliminary business activities, identified key audit areas and important accounting issues, and made full preparations for completing audit tasks and reducing audit risks.
2. Implementation evaluation of specific audit procedures
Based on the evaluation of the integrity, rationality of design and effectiveness of operation of the company’s internal control, the audit team determined the implementation of control test procedures and substantive test procedures. In the control test audit procedure, in order to obtain the audit evidence of the effective operation of internal control, the audit team implemented the walk through test procedure. In the substantive test audit procedure, the auditors carried out the detailed test and substantive analysis procedures, and obtained the necessary audit evidence for various transactions, account balances and presentation identification.
3. Comments on the audit report issued by the accounting firm
In this year’s audit, the audit team carried out appropriate audit procedures in accordance with the requirements of the auditing standards for Chinese certified public accountants, and obtained sufficient and appropriate audit evidence for expressing audit opinions. The firm’s unqualified audit opinion on the financial statements is made on the basis of obtaining sufficient and appropriate audit evidence.
4、 Evaluation on the improvement suggestions put forward by the accounting firm
In the audit process, the improvement opinions put forward by the audit team to the company are based on reality and seek truth from facts. The improvement suggestions put forward by the company have been adopted, and some of them have begun to implement improvement.
Xinjiang Zhongtai Chenical Co.Ltd(002092) Audit Committee of the board of directors
February 17, 2002
