GUILIN FUDA (SH:603166) Zheng Quan Zhi Xing·2025-08-11 09:12Core Points - The article outlines the selection system for accounting firms at Guilin Fuda Co., Ltd, aiming to enhance audit quality and ensure the authenticity of financial information [1][2][3] Group 1: General Principles - The selection of accounting firms must comply with relevant laws and regulations, including the Company Law and Securities Law of the People's Republic of China [1] - The selection process is to be approved by the Board of Directors and the Shareholders' Meeting, ensuring no prior engagement of firms before these approvals [2] Group 2: Quality Requirements for Accounting Firms - Selected accounting firms must possess necessary qualifications as per the China Securities Regulatory Commission and other relevant authorities [2] - Firms must have a good reputation and a record of quality in their auditing practices, with no significant penalties in the last three years [2] Group 3: Selection Procedures - The Audit Committee is responsible for the selection process, including drafting policies, evaluating proposals, and submitting recommendations to the Board [3][5] - The selection process must be competitive and transparent, utilizing methods such as public bidding and competitive negotiations [4][5] Group 4: Evaluation Criteria - Evaluation criteria for accounting firms include audit fees, qualifications, past performance, quality management, and resource allocation [6] - Quality management must account for at least 40% of the evaluation score, while audit fees should not exceed 15% [6] Group 5: Contractual Obligations and Reporting - The selected accounting firm must adhere to the terms outlined in the audit service agreement and complete the audit within the specified timeframe [7][8] - The company must disclose information regarding the accounting firm, including service duration and audit fees, in its annual financial reports [9] Group 6: Special Provisions for Replacement - The company must replace the accounting firm if there are significant quality issues or if the firm fails to meet its obligations [10][11] - The Audit Committee must conduct thorough evaluations before recommending any changes to the accounting firm [11] Group 7: Supervision and Penalties - The Audit Committee is tasked with monitoring the performance of the accounting firm and reporting any violations to the Board [29][30] - Serious violations by the accounting firm can lead to non-renewal of contracts and potential financial penalties [30][12]