After Dafa Audit Committee was established, 16 enterprises were rejected. Looking at the enterprises that are about to be rejected, we can find that the audit Committee is most concerned about the authenticity of financial data; In financial data, gross profit margin, cash flow, accounts receivable, inventory, cash transactions, sales model, etc. It is the top priority of the audit.
gross profit rate
Gross profit margin is one of the most concerned financial indicators of IEC. The problems that are most easily concerned by the audit Committee include: the gross profit margin of enterprises is significantly higher than that of the same industry; The gross profit margin during the reporting period is inconsistent with the changes of companies in the same industry; Gross profit margin is decreasing year by year. It can be seen that whether the gross profit margin is too high or too low, and whether it is abnormally increased or decreased compared with the same industry, it is easy to be inquired by the audit Committee.
Case: Zhong Jie Science and Technology
The main products of Zhong Jie Science and Technology are automobile wiper system components and automobile door and window system components. From April 20/kloc-0 to June 20 17, the operating income of Zhong Jie science and technology was 170650700 yuan, 17035438+0 10000 yuan, 200628200 yuan and 9668 yuan respectively. 44.43 million yuan and 2308 1.7 million yuan, and the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses is 7.23/kloc-0.0 million yuan, 20.9908 million yuan, 49.63060 million yuan and 22.0085 million yuan respectively. From 20 14 to 20 17, the gross profit margin of the main business of Zhong Jie science and technology was 36.02%, 39.02%, 45.24% and 46.23% respectively.
The meeting of the Audit Committee put forward five inquiries to Zhong Jie Science and Technology, one of which was: "During the reporting period, the income of auto wiper system parts accounted for more than 80% of the issuer's sales, which was relatively stable, but the growth rate was lower than the average level of companies in the same industry; The issuer's gross profit margin has increased year by year, which is inconsistent with the change of gross profit margin of companies in the same industry. Please ask the issuer's representative to explain: (1) The reason why the growth rate of main business income is lower than that of companies in the same industry; (2) The reason why the gross profit margin of this kind of products of the issuer was significantly higher than that of similar products of comparable listed companies in the same industry in 20 16, 20 17 and1-June; (3) The reasons why the change trend of the issuer's gross profit margin is inconsistent with that of the same industry during the reporting period. Please sponsor the representative to explain the verification method and basis and express a clear verification opinion. "
The IEC questioned the abnormal gross profit margin of Zhong Jie Science and Technology, mainly because its gross profit margin was significantly higher than that of comparable listed companies, and the gross profit margin of Zhong Jie Science and Technology's main business increased by 65,438+00 percentage points in recent three years under the downward trend of the overall gross profit margin of the industry.
Like Zhong Jie Science and Technology, listed companies that manufacture auto parts include Jifeng, century huatong, Jingwei, Tianlong and Sara. The average gross profit margin of five listed companies in 20 14 years is 32.22%, 20 15 years is 3 1. 15%, 20 16 years is 32.07%, and 20 17 years is 29. However, in the case that the gross profit margin of Zhong Jie Science and Technology is much higher than that of companies in the same industry, the gross profit margin has been rising in recent years, which has also attracted the audit committee to question its financial authenticity.
[endif] Operating cash flow
One of the simplest and most effective ways to judge the financial authenticity of traditional companies is to look at the matching degree of their cash flow and profits. If the profit of the enterprise is highly matched with the operating cash flow, it often proves that the company has stable profitability; However, if there is a big difference, there may be a situation of inflated profits. Specifically, high accounts receivable and high inventory are the main concerns of the Independent Electoral Commission.
receivables
As an important part of the balance sheet, accounts receivable is also one of the main ways for some enterprises to adjust their income and profits. In the case of financial fraud listing in China's capital market, it is more common to increase income and profits by inflating accounts receivable. For example, in the fraudulent listing case of Hailianxun, there are false records in the relevant financial data in the IPO application documents submitted by the company to the CSRC. After verification by the CSRC, the company falsely recovered accounts receivable and inflated its operating income. At the end of 2009, at the end of 2011,Hailianxun falsely recovered accounts receivable of14.29 million yuan and 65,438 yuan respectively. In addition, in the first half of 20 10 and 201/kloc-0, the company fabricated four and six contracts with customers respectively, which inflated the income by14.26 million yuan and13.35 million yuan. In the end, the company was punished by the CSRC, and the relevant responsible persons were also banned from entering the market. Therefore, the problem of accounts receivable is the focus of the audit Committee to verify the financial authenticity.
Case: Sino-British Technology
The main products of Sino-British Science and Technology are high-frequency communication materials. In June, 20 14-20 16 and 2017/KLOC-0, Sino-British Technology achieved revenue of 87,955.01422 respectively. The net profit is 65,438+0,385, 630 yuan, 26,5438+0,559, 200 yuan, 34,035,654, 38 yuan and 26,654,38+0,438 respectively.
The meeting of the audit committee raised five questions about Sino-British Science and Technology, one of which was: "The amount of accounts receivable of the issuer at the end of each reporting period was relatively large, accounting for 43.42%, 43.58% and 47.59% of the annual operating income of 20 14, 20 15 and 20 16 respectively. The issuer's representative is requested to: (1) explain the accounts receivable in combination with the sales policies, structure and credit policies of different products and the seasonal sales of different products of the issuer.
Higher reasons and their rationality; (2) The reason and rationality of the mismatch between the balance of accounts receivable at the end of June 2007 and the income of the same period. The sponsor representative is requested to explain the verification method, basis and express verification opinions. "
The inquiry of the audit committee about the accounts receivable of Sino-British Science and Technology mainly focuses on two points: first, the amount is relatively large, accounting for nearly half of the operating income in the past three years; Second, the balance of accounts receivable does not match the income ratio in the same period. It can be seen that companies with high accounts receivable need to pay special attention to its rationality when reporting.
goods in stock
As an important part of the company's assets, inventory has always been highly concerned by the audit Committee. Excessive inventory will not only easily lead to backlog and increase storage costs, but also indirectly affect the company's income and
Performance. On the other hand, the evaluation of inventory value and the extraction method of inventory depreciation reserve are also the key issues considered by the independent audit Committee. Therefore, companies with a large increase in inventory balance or a continuous decline in inventory turnover rate are vulnerable to inquiries from the IEC.
Case: Putian Iron Core
Putian iron core is mainly engaged in the research, development, production and sales of power transformer iron core and its intermediate products. According to the financial data, from 20 13 to 20 16 and 20 17 to June, the operating income of Putian Core was 466 million yuan, 640 million yuan, 648 million yuan and 283 million yuan respectively, and the corresponding net profit attributable to the owners of the parent company was about 24.2675 million yuan respectively.
The audit committee meeting raised four questions for Putian Core, one of which was: "During the reporting period, the issuer's inventory was 49,603,700 yuan, 68,347,600 yuan, 85,376,438 yuan+0,770 yuan, and 99,522,900 yuan respectively, all of which increased substantially; The inventory turnover rate is 10.07 times, 9.47 times, 7.05 times and 5.0/kloc-0 times respectively, which is decreasing year by year. At the same time, from 2065438 to the end of June 2007, the issuer's accounts receivable rose sharply, accounting for 69.25% of the operating income. Ask the issuer's representative to explain: (1) Explain the rationality and necessity of the issuer to maintain a high inventory scale in combination with the production mode, procurement and production cycle, prepaid raw materials, etc. (2) Combined with the distribution of the issuer's inventory at the end of the latest period, explain whether the inventory management mode in different places and the company's inventory management system are sound; (3) According to the change of market price, explain the implementation of inventory counting and inventory valuation test, and whether the issuer's inventory is true, especially because oriented silicon steel is easy to be damaged. Please explain whether the basis for the provision for inventory depreciation is sufficient and whether the provision for inventory depreciation is fully accrued according to the state of oriented silicon steel at the end of the period; (4) Compare the inventory turnover rate of listed companies in the same industry, and explain the reasons and rationality of the difference; (5) Whether the reason for the continuous increase of the issuer's accounts receivable involves the adjustment of the sales credit policy; Combined with the situation that "the amount beyond the payment time agreed in the contract" accounts for about 60% of accounts receivable, this paper explains whether the existing bad debt provision policy is appropriate. Please sponsor the representative to explain the verification method, process and basis and express the verification opinions. "
The Audit Committee paid close attention to the sharp increase in Putian iron core inventory and the sharp decrease in inventory turnover rate, and asked about inventory management mode, inventory depreciation reserve and other issues.
cash transaction
Although cash transaction is the most important settlement method in our daily life, it is difficult to verify the reliability of its transaction because it is difficult to leave traces.
Agriculture, forestry, animal husbandry and fishery enterprises have become one of the most difficult industries to pass the audit because of a large amount of cash settlement, so we should pay attention to it when judging the success rate of IPO declaration.
Case: Shennong shares
The company's main business is the production and sales of feed products, pig breeding and sales, pig slaughtering and processing, and pork food sales. The net profit of the first phase in the past three years was 4 1, 7 1 000,000 yuan, 85 1 200,000 yuan, 1.69 million yuan, 87.72 million yuan respectively.
The IEC meeting raised four questions about Shennong, one of which was: "Cash transaction. During the reporting period, the ratio of cash sales to operating income of the issuer increased year by year, with 20 16 accounting for 25.43% and 20 17+0-6 accounting for 28. 16%. There are many tax-free links in the issuer's transaction process. At the same time, the issuer's distribution income accounts for nearly 99%, customers are scattered and change greatly, most of them are individual industrial and commercial households, the ERP system is not perfect, and sponsors have not obtained the inventory data of dealers. Please ask the issuer's representative to explain: (1) the authenticity and necessity of cash transactions, the reasons for the annual increase, the process of cash transactions and related internal control measures, and the relevant measures to reduce cash transactions in the future; (2) Whether there is capital exchange between the issuer's actual controller and its related parties, the issuer's directors and its controlled enterprises or other stakeholders, major customers and suppliers, whether there is external circulation of funds, and whether the third party delivers benefits to the issuer; (3) The authenticity of terminal sales under the distribution mode. Please sponsor the representative to clearly express the verification opinions on the above issues. "
It can be seen that the audit committee is highly concerned about the settlement method of cash transactions. The main problem is that the proportion of cash transactions in Shennong's share income is increasing year by year, which may lead to doubts about the authenticity of the company's financial situation.
Sales model
For most companies, sales is the most important link, but it is also easy to bring problems in the sales process. The distribution model has become the focus of the audit Committee because it is easy to generate inflated orders and related transactions. In addition, the stability and sustainability of sales and customer concentration have also attracted much attention.
Case: Juquan Optoelectronics
Juquan Optoelectronics' main business is R&D, designing and selling terminal equipment chips related to smart meters. Its main products include electric energy metering chips and carrier communication chips related to electric meters. According to the financial data, in the first half of 20 14-20 16 and 20 17, the operating income of Juquan Optoelectronics was about147 million yuan,150 million yuan,163 million yuan and respectively. The corresponding net profit for the current period is about 39.72 million yuan, 35 1.7 million yuan, 34.65 million yuan and/kloc-0.509 million yuan respectively.
The meeting of the Audit Committee raised five questions about Juquan Optoelectronics, one of which was: "The sales of the issuer during the reporting period were mainly dealer sales, and the distribution income in each period accounted for more than 96%. The relationship between the issuer and the dealer belongs to.
In a buyout sales relationship. Please explain to the issuer's representative: (1) During the reporting period, the sales of the top five dealers accounted for about 95% of the operating income, and there were only 23 major end customers. Is there any relationship between the above customers, sales changes, detailed reasons and continuity of sales analysis? Combined with the sales policy of comparable companies, the rationality of adopting the dealer buyout model is further analyzed. (2) The influence of the dealer buyout mode on the authenticity and accuracy of the issuer's revenue recognition, and whether the revenue recognition policy complies with the relevant provisions of the Accounting Standards for Business Enterprises; (3) During the reporting period, the issuer's share of worry-free final sales to its shareholding subsidiaries continued to increase, and it became the largest final customer in the first half of 20 17, which was not used as the basis for identifying related parties and related transactions, nor was it directly sold to Beijing, indicating the rationality and authenticity of the business; (4) The sales revenue of customer Haohui Electronics accounts for about 50% of the issuer's operating income. Combined with the historical cooperation with Haohui Electronics, distribution agency model and sales settlement model, it is explained whether the issuer has a significant dependence on a single customer and whether it has a significant adverse impact on the issuer's sustainable profitability. Please ask the sponsor representative to explain the verification method, process and basis, and clearly express the verification opinions. "
It can be seen that the distribution-oriented sales model, excessive concentration of customers, the existence of related company transactions, and dependence on large customers are all the key points of the inquiry of the IEC. These problems make the audit committee doubt the sustainable sales of Juquan Optoelectronics in the future, and then question whether it will lead to the loss of sustainable profitability of the enterprise.
In addition to the above financial points, the ownership structure is too scattered, the actual controller is unknown, and there are potential equity disputes. Legal and compliance issues, such as business qualifications and litigation disputes; Normative issues of internal control; The rationality of the use of raised funds is also the focus of the audit Committee.
label
It is not difficult to see that although the current IPO review speed is accelerating, the chances of success are getting smaller and smaller. Recently, Xinhua News Agency also issued a document saying that the IPO pass rate has decreased or become the norm. What is the attitude of the IEC in the future? We believe that the attitude of strict censorship will not change. Under the new audit system of Dafa Audit Committee, the CSRC adopts the method of computer lottery and single authorization for seven members who participate in the issuance audit to avoid the problem of members being "public relations"; It also emphasizes the responsibility for members who violate laws and regulations, making members more rigorous in the audit process. Combined with the recent mention of delisting system by the CSRC, it can be seen that the regulatory authorities have begun to prescribe the right medicine for the long-standing ills in the A-share market. For companies planning to IPO, it is imperative to polish themselves and reduce "hard injuries"; For all "philatelic parties", it is the most important thing to conduct in-depth research on the target company and judge whether its IPO is reliable.