Chapter 1 General Principles
Article 1
To standardize the appointment (including selection, reappointment, and change of appointment) of accounting firms by Zhejiang Fu Holding Group Co., Ltd. (hereinafter referred to as "the Company"), effectively safeguard the interests of all shareholders, improve the quality of audit work and financial information, and ensure the authenticity and continuity of financial information, this system is formulated in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the 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 Articles of Association of the Company, combined with the actual situation of the Company.
Article 2
The term "appointment of accounting firms" in this system refers to the hiring of accounting firms to provide annual audit services for the Company (including financial statement audits and internal control audits), excluding annual financial statement audits and internal control audits for individual legal entities of wholly-owned or controlled subsidiaries of the Company; it also excludes special audits and consulting services provided to the Company and its wholly-owned or controlled subsidiaries.
Chapter 2 Requirements for Accounting Firms
Article 3
The accounting firms appointed by the Company must meet the following conditions:
- Possess qualifications to conduct securities and futures-related business as stipulated by national industry authorities and the China Securities Regulatory Commission;
- Have a fixed workplace, a sound organizational structure, and effective internal management and control systems;
- Maintain a good record of professional quality, ethics, and reputation, and strictly adhere to relevant laws, regulations, and policies regarding financial audits;
- The certified public accountants responsible for the Company's financial statement audits and signing the audit reports must be familiar with relevant financial and economic laws, regulations, and policies, and proficient in enterprise accounting standards and auditing standards;
- Have experience auditing large listed companies and be capable of mobilizing strong workforce within the stipulated time to complete audit tasks with quality;
- Other conditions stipulated by relevant laws, regulations, and normative documents.
Chapter 3 Selection of Accounting Firms
Article 4
The process for selecting accounting firms requires:
- The audit committee shall form a written opinion on whether to agree to the selection of accounting firms based on relevant laws, regulations, this system, and the "Audit Committee Work System of the Board of Directors," after which the board of directors may review the relevant proposals;
- After the board of directors approves the proposal to select accounting firms, it shall be submitted to the shareholders' meeting for review;
- The shareholders' meeting shall review the proposal submitted by the board of directors regarding the selection of accounting firms;
- After the shareholders' meeting passes the resolution to select accounting firms, the Company shall sign an audit service agreement with the selected accounting firm to engage them for audit services;
- The Company shall not engage accounting firms to issue audit opinions, audit reports, and internal control reports on the Company's financial statements before the review by the board of directors and the shareholders' meeting;
- The Company's controlling shareholders and actual controllers shall not designate accounting firms or interfere with the audit committee's independent review responsibilities before the board of directors and shareholders' meeting.