Guanglian Aviation Industry Co.Ltd(300900)
audit report
Tian Zhi Ye Zi [2022] No. 9142
catalogue
Audit report 12021 annual financial statement 72021 annual financial statement note 19 Audit Report
Tian Zhi Ye Zi [2022] No. 9142 Guanglian Aviation Industry Co.Ltd(300900) all shareholders:
1、 Audit opinion
We have audited the financial statements of Guanglian Aviation Industry Co.Ltd(300900) (hereinafter referred to as ” Guanglian Aviation Industry Co.Ltd(300900) “, “the company” or “your company”), including the consolidated and parent company’s balance sheet as of December 31, 2021, the consolidated and parent company’s income statement, consolidated and parent company’s cash flow statement, consolidated and parent company’s statement of changes in shareholders’ equity and notes to financial statements in 2021.
In our opinion, the attached financial statements are prepared in accordance with the provisions of the accounting standards for business enterprises in all material aspects and fairly reflect the financial position of Guanglian Aviation Industry Co.Ltd(300900) the consolidated and parent company as of December 31, 2021 and the operating results and cash flow of the consolidated and parent company in 2021.
2、 Basis for forming audit opinions
We conducted our audit in accordance with the auditing standards for Chinese certified public accountants. The “responsibilities of certified public accountants for the audit of financial statements” in the audit report further expounds our responsibilities under these standards. According to the code of professional ethics for Chinese certified public accountants, we are independent of Guanglian Aviation Industry Co.Ltd(300900) , and have fulfilled other responsibilities in terms of professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis for our audit opinion.
3、 Key audit matters
The key audit matters are the most important matters that we consider to audit the current financial statements according to our professional judgment. The response to these matters is based on the overall audit of the financial statements and the formation of audit opinions. We will not express separate opinions on these matters. Audit report (Continued)
Tian Zhi Ye Zi [2022] No. 9142
Key audit matters how to deal with them in the audit
(I) provision for bad debts of accounts receivable
On the balance sheet date, bad debts of accounts receivable during the audit of bad debt reserves of accounts receivable, our reserves are based on the recoverability evaluation of accounts receivable, including but not limited to the following procedures:
Calculated. To evaluate the recoverability of accounts receivable, 1 Understand the management’s key internal control over financial reporting related to credit control, account recovery and evaluation. The management of your company (hereinafter referred to as “management”) should make a lot of judgments, including determining the current credit of customers and testing the design and operation effectiveness of these internal controls;
Use grade, understand the customer’s past repayment history and 2 To assess the current market conditions adopted by the management in calculating the provision for impairment of accounts receivable, we listed the accuracy of the applied methods, input data and assumptions, and reviewed the bad debt provision of bad accounts receivable as key audit matters. Whether the provision for accounts is sufficient;
For details of relevant information disclosure, see the note “III. important meeting 3. Check the accuracy of aging division of accounts receivable, and select the sample calculation policy and accounting estimation (XII) accounts receivable” to check to the original supporting documents;
The accounting policies and notes to the financial statements “VI. 4. The correspondence procedure is implemented for the balance of accounts receivable, the substitution test is carried out for the samples that have not returned the notes (IV) to the main items of the consolidated financial statements, and the accounts receivable is carried out for the samples with inconsistent replies”. Further audit procedures to investigate the causes of differences;
5. For customers with large accounts receivable balance or long aging, we interviewed the management to understand the information of the main debtors and the management’s evaluation of their recoverability. The audit procedures implemented include but are not limited to:
(1) Check the historical repayment records and relevant information of subsequent repayment;
(2) Query the information related to the development of the debtor or its industry through public channels to identify whether there are situations that affect the evaluation results of bad debt provision for accounts receivable of your company.
Audit report (Continued)
Tian Zhi Ye Zi [2022] No. 9142
Key audit matters how to deal with them in the audit
(II) inventory falling price reserves
On the balance sheet date, inventories are measured at the lower of cost and net realizable value during the audit of inventory falling price reserves. The net realizable value follows the following procedures, including but not limited to:
The estimated selling price of the products produced will be reduced to 1.5% of the estimated completion price Understand, evaluate and test the costs to be incurred by the management and the inventory falling price reserves, the estimated sales expenses, and the design and operation effectiveness of relevant internal control key control points; The amount after relevant taxes is determined. Management can 2 Understand and evaluate the company’s management’s estimation of the net realizable value of inventory falling price reserves, which involves major judgments and the appropriateness of valuation policies;
Calculation, including the future selling price, production cost and Since most of the company’s products are customized, it is impossible to obtain China’s marketable expenses and relevant taxes.
Since the inventory is higher than the open market price of products, we select samples to compare the expected amount of the company and whether the provision for falling price is accurate or not, and compare the product price with the contract price;
The financial statements have a great impact, so we determine it as 4 For goods delivered, raw materials outsourced to suppliers or key audit matters. The product has implemented the letter confirmation procedure. For the samples that have not replied, the replacement of relevant information disclosure is carried out. See the note test of the statement for details. For the samples with inconsistent replies, further audit procedures are carried out, “III. important accounting policies and accounting estimates (x) investigate the reasons for the differences;
5） The accounting policy described in “inventory” and “VI. 5. For raw materials and products in process, select samples to compare the cost and sales expense of raw materials in stock, products in process and finished goods in the same year with the main item note (VII) of the consolidated financial statements. Evaluate the reasonableness of the company’s estimated costs, sales expenses and relevant taxes to be incurred by the completion of the project:
6. Obtain the calculation table of inventory falling price reserves and check whether its calculation is accurate.
Audit report (Continued)
Tian Zhi Ye Zi [2022] No. 9142 IV. other information
The management is responsible for other information. Other information includes the information covered in the Guanglian Aviation Industry Co.Ltd(300900) 2021 annual report, but does not include the financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information, and we will not issue any form of assurance conclusion on other information.
In combination with our audit of the financial statements, our responsibility is to read other information and consider whether other information is materially inconsistent with the financial statements or the information we have learned in the audit process, or there seems to be material misstatement.
Based on the work we have performed, if we determine that there is a material misstatement in other information, we should report that fact. In this regard, we have nothing to report.
5、 Responsibilities of management and governance for financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of the accounting standards for business enterprises to achieve a fair reflection, and designing, implementing and maintaining necessary internal control so that the financial statements are free from material misstatement caused by fraud or error.
When preparing the financial statements, the management is responsible for assessing Guanglian Aviation Industry Co.Ltd(300900) ‘s ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the assumption of going concern, unless liquidation is planned, operation is terminated or there is no other realistic choice. The management is responsible for supervising the financial reporting process of Guanglian Aviation Industry Co.Ltd(300900) .
6、 Responsibilities of certified public accountants for the audit of financial statements
Our goal is to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement due to fraud or error, and issue an audit report containing audit opinions. Reasonable assurance is a high-level assurance, but it does not guarantee that the audit performed in accordance with the audit standards will always be found when a major misstatement exists. Misstatement may be caused by fraud or error. If it is reasonably expected that the misstatement alone or in summary may affect the economic decisions made by the users of the financial statements based on the financial statements, the misstatement is generally considered to be significant.
In the process of carrying out the audit work in accordance with the audit standards, we use professional judgment and maintain professional doubt. At the same time, we also carry out the following work:
(1) Identify and assess the risks of material misstatement of financial statements due to fraud or error, design and implement audit procedures to deal with these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. Since fraud may involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failing to find major misstatement caused by fraud is higher than that caused by error.
Audit report (Continued)
Tszz [2022] No. 9142 (2) understand the internal control related to audit to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(4) Draw conclusions on the appropriateness of management’s use of going concern assumptions. At the same time, according to the audit evidence obtained, draw a conclusion on whether there are major uncertainties in the matters or circumstances that may lead to major doubts about the sustainable operation ability of your company. If we conclude that there is significant uncertainty, the auditing standards require us to draw the attention of statement users to the relevant disclosures in the financial statements in the audit report; If the disclosure is insufficient, we should express a non unqualified opinion. Our conclusions are based on the information available as of the date of the audit report. However, future events or circumstances may cause your company to be unable to continue its business.
(5) Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Guanglian Aviation Industry Co.Ltd(300900) to express an audit opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions.
We communicated with the management on the planned audit scope, schedule and major audit findings, including the internal control defects that we identified in the audit.
We also provide a statement to the management that we have complied with the professional ethics requirements related to independence, and communicate with the management all relationships and other matters that may reasonably be considered to affect our independence, as well as relevant preventive measures (if applicable).
From the matters communicated with the management, we determine which matters are most important for the audit of the consolidated financial statements of the current period, thus constituting key audit matters. We describe these matters in the audit report, unless laws and regulations prohibit the public disclosure of these matters, or in rare cases, if the negative consequences of communicating a matter in the audit report are reasonably expected to exceed the benefits in the public interest, we determine that we should not communicate the matter in the audit report.
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Audit report (Continued)
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Chinese certified public accountant
(project partner):
Beijing, China
