Business report of Tianjin accounting firm in 2022
Anti counterfeiting report page
Filing No.: 0221201 Hainan Strait Shipping Co.Ltd(002320) 220414083462
Report No.: lxzlsz [2022] d-0212
Reporting unit: Wuxi Autowell Technology Co.Ltd(688516)
Filing date: April 14, 2022
Report date: April 14, 2022
Signed by: Li Chunhua, Cao Yuchen
Firm name: Lixin Zhonglian Certified Public Accountants (special general partnership)
Tel.: 237333333
Fax: 23718888
Mailing address: 10 / F, block C, Marriott building, No. 333, Binshui West Road, Nankai District, Tianjin
E-mail: [email protected].
Website of the firm: http://www.zhlcpa.com.
Anti counterfeiting Supervisor: Tianjin Institute of Certified Public Accountants
Anti counterfeiting query website: http://www.tjicpa.org.cn.
Copyright: Tianjin Institute of Certified Public Accountants Jin ICP Bei No. 05002894
Wuxi Autowell Technology Co.Ltd(688516)
Audit report
Lixin Zhonglian Shen Zi [2022] d-0212
Lixin Zhonglian CPA (special general partner ship)
catalogue
1、 Audit report 1-6 II. Financial statements
1. Consolidated balance sheet, parent company balance sheet 1-4 2, consolidated income statement, parent company income statement 5-6 3, consolidated cash flow statement, parent company cash flow statement 7-8 4, consolidated statement of changes in shareholders' equity, parent company statement of changes in shareholders' equity 9-12 5 Notes to financial statements 1-119
Lixin Zhonglian Certified Public Accountants (special general partnership)
L i x i n Z h o n g l i a n C P A s ( S P E C I A L G E N E R A L P A R T N E R S H I P )
audit report
Lixin Zhonglian Shen Zi [2022] d-0212
Wuxi Autowell Technology Co.Ltd(688516) all shareholders:
1、 Audit opinion
We have audited the financial statements of Wuxi Autowell Technology Co.Ltd(688516) (hereinafter referred to as Wuxi Autowell Technology Co.Ltd(688516) Technology), 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 owner's equity and notes to relevant 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 consolidated and parent company's financial position of Wuxi Autowell Technology Co.Ltd(688516) technology as of December 31, 2021 and 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 Wuxi Autowell Technology Co.Ltd(688516) technology 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.
The key audit matters identified in our audit are summarized as follows:
Key audit matters how to deal with them in the audit
(I) revenue recognition
In 2021, the company's operating revenue was (1) to understand and evaluate the management and revenue confirmation of 204672746980 yuan. The company confirmed the main methods of design input of key internal control related to revenue recognition: (1) the effectiveness of automation equipment and operation; (2) Carry out analytical procedures for revenue, sales revenue and sales cost of equipment transformation services, including: each entry is to confirm the sales revenue after the equipment installation and commissioning is completed and the monthly revenue, cost and gross profit margin fluctuation are obtained, the written acceptance documents confirmed by the customer, and the comparative analysis of each period. (2) Equipment related spare parts sequence and review the rationality of income; (3) The sales revenue of spare parts is to confirm the sales amount in the collection period and the balance of accounts receivable at the end of the period when the goods are sent to important customers, confirm the account and obtain the customer's signature. As the amount of revenue is significant and critical, so as to evaluate the authenticity and performance indicators of revenue recognition, there is a problem that the management is trying to achieve accuracy and completeness; (4) In order to confirm the inherent risk of outsourcing, we will confirm the authenticity and accuracy of the revenue from export sales by manipulating the revenue to obtain the export declaration documents for receiving specific goals or expectations for export sales; (5) Identified as key audit matters. As for the detailed test of revenue execution, the important recognition accounting policies are inspected by sampling. See the notes to the financial statements, sales contracts, invoices and acceptance reports III and XXIII of the customer; Report and classification of income; Check the delivery records and the disclosure of the amount of this year in the waybill. See the attachment to the financial statements, export declaration and other external evidence for details; (6) Note V, (36), XIV, (V).
Check the bank documents of the sales collection of this year by sampling; (7) Select samples of revenue transactions recorded before and after the balance sheet date, check delivery orders, invoices, contracts or other supporting documents, and evaluate whether the revenue is recorded in the appropriate accounting period.
(II) inventory and inventory falling price reserves are as described in note V and (VII) to the financial statements, (1) understand and test the rationality of the internal control design related to the provision of inventory book balance at the end of 2021
193871091271 yuan, the availability of withdrawn goods and the effectiveness of operation, and the accounting estimation of 8716944021 yuan of relative falling price reserves and inventory; (2) The net deposit value at the end of the review period accounted for 43.24% of the total assets. Inventory counting plan, combined with the distribution of inventory warehouses, due to the determination of the net realizable value of inventory and the situation involved, monitors the ending raw materials, goods in stock and the major judgments and estimates of the management, as well as the inventory of products. In the inventory, we consider the necessity of observing and checking the products in the overall re supervision procedure of the inventory on the financial statements, which we regard as the status and availability of key audit matters; (3) Review inventory items. Calculation process and evaluation of net realizable value
The rationality of using estimates and assumptions; (4) Implement letter of credit procedures for important issued commodities; (5) Obtain the stock age analysis table of ending inventory, focusing on the analysis of long stock age inventory
Review and analyze whether the inventory falling price reserves are sufficient and reasonable;
(6) The provision for impairment of inventories shall be calculated according to the method of the company's inventory impairment test
Reliability and accuracy of calculation.
4、 Other information
Wuxi Autowell Technology Co.Ltd(688516) Technology Management (hereinafter referred to as management) is responsible for other information. Other information includes the information covered in the 2021 annual report of Wuxi Autowell Technology Co.Ltd(688516) technology, 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 evaluating the sustainable operation ability of Wuxi Autowell Technology Co.Ltd(688516) technology, disclosing matters related to sustainable operation (if applicable), and applying the assumption of sustainable operation, 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 Wuxi Autowell Technology Co.Ltd(688516) technology.
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:
(I) 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.
(II) understand the internal control related to audit to design appropriate audit procedures.
(III) evaluate the appropriateness of accounting policies selected by the management and the rationality of accounting estimates and related disclosures.
(IV) draw a conclusion on the appropriateness of the management's use of the going concern assumption. 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 Wuxi Autowell Technology Co.Ltd(688516) science and technology. 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 lead to the inability of Wuxi Autowell Technology Co.Ltd(688516) technology to operate continuously.
(V) evaluate the overall presentation (including disclosure), structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.
(VI) obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Wuxi Autowell Technology Co.Ltd(688516) science and technology, so as to express audit opinions on the consolidated 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 what may reasonably be considered to affect our independence
