WOTE(SZ:002886) Zheng Quan Zhi Xing·2025-08-01 16:35Core Viewpoint - The article outlines the selection system for accounting firms at Shenzhen Water New Materials Co., Ltd., aiming to enhance audit quality and protect shareholder interests through a structured process [1][2]. Group 1: Selection Process - The selection of accounting firms must be reviewed by the Audit Committee and approved by the Board of Directors before being submitted to the shareholders' meeting for final decision [3][4]. - The company must not engage an accounting firm for audit services before the shareholders' meeting has approved the selection [3][4]. - The selection process includes competitive negotiation, public bidding, and other methods to ensure fairness and transparency [4][5]. Group 2: Qualifications and Responsibilities - Selected accounting firms must possess independent legal status, necessary qualifications, and a good reputation in compliance with national regulations [2][5]. - The Audit Committee is responsible for overseeing the selection process, including setting policies, evaluating proposals, and monitoring the audit work [2][6]. Group 3: Evaluation Criteria - Evaluation criteria for accounting firms include audit fees, qualifications, quality management, and risk management capabilities, with quality management weighted at least 40% [5][6]. - The company must disclose information about the accounting firm, including service duration and audit fees, in its annual report [5][6]. Group 4: Information Security and Compliance - The company must ensure information security during the selection process and include specific clauses in contracts to protect sensitive information [6][7]. - All documents related to the selection process must be archived for at least 10 years, and any changes in accounting firms must be carefully monitored [6][7]. Group 5: Implementation and Amendments - The system will be effective upon approval by the shareholders' meeting and is subject to amendments by the Board of Directors [8].