China Ink Association: Prudent Response To Gem Annual Report Audit

The Chinese Institute of Certified Public Accountants recently held the annual audit meeting of securities qualified accountants firms in Beijing.

The meeting put forward four specific requirements for the audit of annual reports: first, strictly abide by the auditing standards and codes of professional ethics, avoiding the risk assessment and audit plan becoming a mere formality, preventing the review of project quality control from being nominal, putting risk oriented auditing into practice, and two, paying close attention to the major risk areas such as the classification, confirmation and measurement of financial instruments, the situation of asset impairment, the handling of reverse purchase pactions, the related party relations and major related party pactions; three, the audit of risk and complex matters such as auditing of GEM companies, continuous operation audit, production cost audit, cash flow audit, etc., and four, conscientiously do a good job in the 2010 year financial report audit and business reporting work of listed companies, so as to ensure the authenticity, accuracy and completeness of the information provided by the listed companies.

The chief executive of the China Association of Certified Public Accountant (CPAs) said that the China ink Association will follow up the audit of financial statements of listed companies 2010 day by day, and pay close attention to the annual report.