YINGJIA DISTILLERY(SH:603198) Zheng Quan Zhi Xing·2025-06-22 08:19Audit Opinion - The audit report states that the financial statements of Anhui Yingjia Distillery Co., Ltd. fairly reflect its financial position as of December 31, 2024, in accordance with accounting standards [1]. Key Audit Matters - Inventory existence, valuation, and allocation are identified as key audit matters due to the significant value of inventory, which amounts to 5,043.14 million yuan, representing 37.67% of total assets and 51.15% of current assets [2]. - Revenue recognition is also a key audit matter, as the company recognizes revenue when control of the product is transferred to the customer, which poses a risk of fraud [3]. Audit Procedures - For inventory, the audit procedures included understanding the cost accounting and inventory control processes, conducting inventory counts, analyzing inventory turnover, and performing impairment tests [2][3]. - For revenue recognition, the audit procedures involved evaluating internal controls, reviewing sales contracts, checking shipping documents, and performing analytical procedures to ensure compliance with accounting standards [3][4]. Management Responsibilities - Management is responsible for preparing financial statements in accordance with accounting standards and maintaining effective internal controls to prevent material misstatements due to fraud or error [5]. Auditor Responsibilities - The auditor's goal is to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes an opinion [6][7].