Can the audit report of the merged subsidiary be overstated?

Of course. According to the company law, the consolidated audit report of the merged subsidiary, including the parent company's own statements and notes, and related research and development expenses can be checked and declared as high. Audit refers to an independent economic supervision activity in which specialized agencies conduct pre-and post-inspection on major projects and financial revenues and expenditures of governments, financial institutions, enterprises and institutions at all levels according to law.