Chapter One: General Principles
Article 1
To standardize the selection (including reappointment and transfer) of accounting firms by Mu Si Health Sleep Co., Ltd. (hereinafter referred to as "the Company"), improve the quality of financial information, and effectively protect shareholder interests, this system is formulated based on the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange Listing Rules," "Management Measures for the Selection of Accounting Firms by State-owned Enterprises and Listed Companies," and other relevant laws and regulations, as well as the provisions of the "Articles of Association of Mu Si Health Sleep Co., Ltd." (hereinafter referred to as "the Articles of Association"), in conjunction with the actual situation of the Company.
Article 2
The term "selection of accounting firms" in this system refers to the Company's appointment of accounting firms to issue audit opinions and audit reports on financial accounting reports. The Company may refer to this system for other statutory audit services conducted by the appointed accounting firms.
Article 3
The appointment or dismissal of accounting firms by the Company must be reviewed and approved by the Board of Directors' Audit Committee (hereinafter referred to as "the Audit Committee"), submitted for Board consideration, and decided by the shareholders' meeting. The Company shall not engage accounting firms to conduct audit services before the Board of Directors and shareholders' meeting deliberation.
Article 4
The Company's controlling shareholders and actual controllers shall not designate accounting firms to the Company or interfere with the Audit Committee's independent review responsibilities before the Board of Directors and shareholders' meeting deliberation.
Chapter Two: Requirements for Accounting Firms' Professional Quality
Article 5
The accounting firms selected by the Company must meet the following qualifications:
- Possess independent legal entity status and the professional qualifications required by national industry authorities and the China Securities Regulatory Commission for conducting securities and futures-related business;
- Have a fixed workplace, sound organizational structure, and complete internal management and control systems;
- Be familiar with national laws, regulations, rules, and policies related to financial accounting;
- Have registered accountants capable of completing audit tasks and ensuring audit quality, completing audit work on time and with quality;
- Seriously implement relevant laws, regulations, rules, and policies regarding financial audits, and have a good social reputation and record of professional quality;
- Other conditions stipulated by the China Securities Regulatory Commission.
Chapter Three: Procedures for Selecting Accounting Firms
Article 6
The Audit Committee is responsible for the selection of accounting firms and supervising the conduct of their audit work. The Audit Committee shall effectively perform the following duties:
- Formulate policies, processes, and related internal control systems for selecting accounting firms as authorized by the Board of Directors;
- Propose to initiate the selection of accounting firms;
- Review selection documents, determine evaluation elements and specific scoring criteria, and supervise the selection process;
- Propose the accounting firms to be selected and the audit fees, submitting them for Board consideration;
- Supervise and evaluate the audit work of the accounting firms;
- Regularly (at least annually) submit evaluation reports on the performance of the appointed accounting firms and reports on the Audit Committee's supervisory responsibilities to the Board of Directors;
- Be responsible for other matters related to the selection of accounting firms as stipulated by laws and regulations, the Articles of Association, and authorized by the Board of Directors.