China Resources Chemical Innovative Materials Co.Ltd(301090) audit report Tian Ye Zi [2022] No. 4343
catalogue
Audit report 12021 annual financial statements 62021 annual financial statements note 18 audit report
Tian Zhi Ye Zi [2022] No. 4343 China Resources Chemical Innovative Materials Co.Ltd(301090) all shareholders:
1、 Audit opinion
We have audited the financial statements of China Resources Chemical Innovative Materials Co.Ltd(301090) (hereinafter referred to as " China Resources Chemical Innovative Materials Co.Ltd(301090) " 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 China Resources Chemical Innovative Materials Co.Ltd(301090) the consolidated and parent company as of December 31, 2021, as well as the consolidated and parent company's operating results and cash flow 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. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of China Resources Chemical Innovative Materials Co.Ltd(301090) , 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
Key audit matters are the most important matters we believe to audit the financial statements in the reporting period 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.
Tian Zhi Ye Zi [2022] No. 4343
Key audit matters how to deal with them in the audit
(I) revenue recognition
China Resources Chemical Innovative Materials Co.Ltd(301090) mainly engaged in the R & D, production and sales of polyester materials and new materials, which we carried out for the revenue recognition and measurement during the China Resources Chemical Innovative Materials Co.Ltd(301090) reporting period. Product polyester bottles and chips are mainly used in production audit procedures, including but not limited to: drinking water bottles, hot filled beverage bottles, carbonated beverage bottles and food bottles. 1) we understand and use oil bottles, medical blood collection vessels, membranes, sheets and other fields through inspection of sales contracts and interviews with management. Evaluated the revenue recognition policy of China Resources Chemical Innovative Materials Co.Ltd(301090) ;
Since the operating income is China Resources Chemical Innovative Materials Co.Ltd(301090) key performance index, 2) we ask the management and governance to evaluate the integrity and standard of the management, the trading partners are scattered, the inherent risk of misstatement is high and the risk of fraud is high; Therefore, we identified revenue recognition as a key audit matter.
3) We understand and test the internal control related to revenue and determine whether it is the disclosure of operating revenue. Please refer to this financial report for whether it can be relied on; Notes "III. (xxx) income" and "VI. (XXXVI)
Operating income and operating cost ". 4) Conduct detail test, extract the sales subsidiary ledger, review the relevant purchase and sales contract, pricing approval form, sales invoice, measurement record and bank receipt, evaluate whether the relevant revenue recognition complies with the accounting policy of China Resources Chemical Innovative Materials Co.Ltd(301090) revenue recognition, and check whether the relevant accounting treatment is correct;
5) Implement analysis procedures for income, monthly fluctuation analysis of income of various products during the reporting period, comparison analysis of fluctuation in the same period, etc;
6) Analyze the fluctuation of your company's gross profit margin, including by product category, customer category, regional category, etc; Comparison and analysis of Listed Companies in the same industry in the same period; Synchronously compare the market price of the product with the sales price of your company, and the price of raw materials in the market is equal to the price of raw materials purchased by your company. Check the rationality of the change of your company's gross profit margin to analyze the authenticity of revenue recognition;
7) Check the authenticity of the recognized income in combination with the procedures of accounts receivable correspondence; 8) For the possible cut-off risks, we have implemented targeted audit procedures, including but not limited to: on the basis of increasing the sample of income integrity test, we conduct the cut-off test for the sales revenue recognized before and after the balance sheet date, Check the relevant time nodes of the documents from the delivery of finished products to the acceptance of customers, so as to evaluate whether the sales revenue is recognized in an appropriate period; During the inventory supervision of finished products, increase the proportion of spot check from the physical arrival, carry out substantive analytical procedures for the inventory, and obtain and check your company's receipt, delivery and inventory details, logistics transportation documents and other documents to confirm whether there is an unrecorded delivery of finished products.
Tian Zhi Ye Zi [2022] No. 4343
Key audit matters how to deal with them in the audit
(II) the authenticity of the project under construction and the accuracy of the time point of conversion to fixed assets
China Resources Chemical Innovative Materials Co.Ltd(301090) of the main projects under construction are Zhuhai III. We aim at the authenticity of the projects under construction during the China Resources Chemical Innovative Materials Co.Ltd(301090) reporting period and the 500000 ton pet project at the time point of conversion. The accuracy of the audit procedures performed include but are not limited to:
Considering the authenticity of the construction in progress and the time point of the transfer of fixed assets, 1) understand the construction and implementation of the internal control system of the construction in progress, ensure the accuracy and proper presentation in the financial statements, check the control documents through the control test, and verify whether the transfer of fixed assets under construction is timely; There are potential misstatements, which will have a significant impact on China Resources Chemical Innovative Materials Co.Ltd(301090) 's net profit. 2) obtaining and consulting relevant feasibility study reports, budgets, contracts, invoices and acceptance sheets. Therefore, we will determine the amount and important time points of the project under construction, such as the accuracy of the fixed time point of the overall budget, as the key audit matters. Amount, commencement date, completion acceptance date, trial production date, payment amount, etc. for the disclosure of projects under construction, please refer to the project completion report, project final settlement report, project acceptance report, fixed assets transfer acceptance form Notes "III. (XX) construction in progress" and "VI. (XII) inspection of key conditions such as on-site investigation of operation status to verify whether the equipment is normal and the construction in progress". Operation, whether it reaches the predetermined usable state, etc;
3) Obtain and check whether the payment progress of the auditee matches the completion progress, observe the construction site on site, and ask relevant personnel about the construction progress on site, Compare the progress observed on site with the three-party confirmation report and actual book records, and pay attention to the rationality of the progress;
4) Check the shutdown and repair records and documents of the project, and the commissioning report after repair.
4、 Responsibilities of management and governance for financial statements
China Resources Chemical Innovative Materials Co.Ltd(301090) Management (hereinafter referred to as "management") is responsible for preparing financial statements in accordance with the accounting standards for business enterprises
Achieve a fair reflection, and design, implement and maintain necessary internal control so that the financial statements are free from fraud or error
Resulting in material misstatement.
When preparing the financial statements, the management is responsible for evaluating China Resources Chemical Innovative Materials Co.Ltd(301090) the ability of going concern and disclosing matters related to going concern
If applicable, and apply the going concern assumption, unless liquidation is planned, operation is terminated or there is no other realistic option.
The management is responsible for supervising the financial reporting process of China Resources Chemical Innovative Materials Co.Ltd(301090) .
Tian Zhi Ye Zi [2022] No. 4343 v. 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.
(2) Understand the internal control related to audit in order to design appropriate audit procedures, but the purpose is not to express an opinion on the effectiveness of internal control.
(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 China Resources Chemical Innovative Materials Co.Ltd(301090) going concern ability. 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 China Resources Chemical Innovative Materials Co.Ltd(301090) 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 China Resources Chemical Innovative Materials Co.Ltd(301090) company to express audit opinions on the financial statements. We are responsible for guiding, supervising and implementing the group audit, and take full responsibility for the audit opinions. We discussed with the management on the planned audit scope
