INTCO RECYCLING(SH:688087) Zheng Quan Zhi Xing·2025-08-26 11:21Core Viewpoint - The document outlines the selection and management procedures for accounting firms at Yingke Recycling Resources Co., Ltd, aiming to enhance audit quality and protect shareholder interests [2][3]. Group 1: General Principles - The selection of accounting firms must comply with relevant laws and regulations, including the Company Law of the People's Republic of China and the Shanghai Stock Exchange rules [2]. - The selection process involves the audit committee's review and approval before submission to the board and ultimately the shareholders [2][3]. Group 2: Quality Requirements for Accounting Firms - Selected accounting firms must possess independent qualifications, a stable operational structure, and a good record of audit quality [4]. - Firms must be familiar with national financial regulations and have qualified registered accountants to ensure audit quality [4]. Group 3: Selection Procedures - The audit committee is responsible for the selection process, which includes developing policies, initiating selection, and evaluating proposals [3][4]. - The selection must be conducted through competitive negotiation, public bidding, or other methods to ensure fairness [3][4]. Group 4: Evaluation Criteria - Evaluation criteria for selecting accounting firms include audit fees, qualifications, past performance, quality management, and resource allocation [5]. - Quality management must account for at least 40% of the evaluation score, while audit fees should not exceed 15% [5]. Group 5: Documentation and Record Keeping - All documents related to the selection process must be archived for at least ten years after the selection concludes [5]. - The audit committee must provide a written review of the selected accounting firm, which will be archived alongside board resolutions [5]. Group 6: Reappointment and Replacement Procedures - The audit committee must evaluate the performance of the accounting firm before reappointment, and if the evaluation is negative, a new firm must be appointed [6][7]. - If a firm is to be replaced, the reasons for termination and the new firm's qualifications must be disclosed [7][8]. Group 7: Supervision and Penalties - The audit committee is tasked with supervising the audit work of the appointed accounting firm and must report on their performance annually [20]. - Serious violations by the accounting firm can lead to termination of their services and potential penalties for responsible individuals [20][21].