ZOY(SH:603709) Zheng Quan Zhi Xing·2025-08-27 10:29Core Viewpoint - The document outlines the selection and management procedures for accounting firms by Zhongyuan Home Co., Ltd, aiming to enhance audit quality and protect shareholder interests [1][2][3]. Group 1: General Principles - The selection of accounting firms must comply with relevant laws and regulations, including the Company Law and Accounting Law of the People's Republic of China [1]. - The company must obtain approval from the audit committee and the board of directors before hiring an accounting firm [1][2]. Group 2: Quality Requirements for Accounting Firms - Selected accounting firms must possess independent legal status and meet qualifications set by regulatory authorities [2]. - Firms must have a solid organizational structure, internal management systems, and a good record of audit quality [2]. Group 3: Management and Responsibilities - The audit committee is responsible for the selection and oversight of accounting firms, including developing policies and evaluating performance [2]. - The finance department collaborates with the internal audit department to assist the audit committee in the selection process [2][3]. Group 4: Selection Procedures - The selection process can include competitive negotiations, public bidding, and other methods to ensure fairness and transparency [4][5]. - The audit committee evaluates firms based on criteria such as audit fees, qualifications, and quality management, with a minimum weight of 40% for quality management [5]. Group 5: Contractual Obligations and Adjustments - The hired accounting firm must fulfill obligations as per the audit service agreement and cannot subcontract the work [6]. - Audit fees can be adjusted based on various factors, and significant decreases must be disclosed [6]. Group 6: Conditions for Replacement - The company must replace the accounting firm if there are significant quality defects or if the firm cannot meet deadlines [6][7]. - The audit committee must investigate the reasons for changing firms and assess the qualifications of the new firm [7]. Group 7: Documentation and Compliance - All documents related to the selection process must be archived for at least 10 years [8]. - The company must ensure information security management capabilities are assessed during the selection process [8]. Group 8: Additional Provisions - The audit committee should be cautious of frequent changes in accounting firms or significant fluctuations in audit fees [9]. - The document will be effective upon approval by the shareholders' meeting and will be revised as necessary [9].