(a) the existence of entrusted processing in the production process generally means that the entrusting party provides raw materials and main materials.
Party B manufactures the goods according to the requirements of the entrusting party, and collects processing fees and some processing accessories. When the issuer and the same entity have procurement and sales business at the same time, it should judge whether the business is independent purchase and sales business or entrusted processing or entrusted processing according to the attribute category and main terms of the business contract, the risk bearing of raw material storage loss and price fluctuation, the complete sales pricing right of the final product, the credit risk bearing of the corresponding account of the final product, and the complexity of raw material processing. If the processing is entrusted, the sponsor institution and the reporting accountant shall verify the following matters and express clear opinions: the main contract terms, specific contents and necessity of the entrusted processing, whether the transaction price is fair, whether the accounting treatment is in compliance, and whether there is any situation in which the entrusted party pays the cost; The basic information of the entrusted processing party, the cooperation history with the issuer and whether there is any relationship with the issuer and its related parties; Specific measures for quality control of products entrusted by the issuer and specific arrangements for product quality responsibility sharing between the company and the entrusted processing party; Combined with the proportion of the output of the entrusted processing products, this paper quantitatively analyzes the change of the entrusted processing price and its influence on the issuer's operation during the reporting period.
(2) For online sales, the sponsor institution and the reporting accountant shall check whether the confirmation of online sales income conforms to the provisions of the Accounting Standards for Enterprises, whether there is any false increase in income through invoicing, the authenticity of income, the verification method, the procedures adopted and the verification results or conclusions, and the authenticity and conclusion of the issuer's online sales income during the reporting period, in combination with the actual situation such as customer name, delivery address, purchase quantity, consumption times, payment amount and other data.
(3) Sponsors and reporting accountants adopting the dealer model should fully check the distribution business and express clear opinions on the authenticity of the income under the dealer model. The main verification items include but are not limited to:
(1) The necessity of adopting the dealer model, the specific business model of the dealer, the subject qualification and credit ability of the dealer;
(2) During the reporting period, the principle of revenue recognition, the principle of expense burden and the subsidy to the distributor under the issuer's distributor model.
The rebate situation, whether the revenue recognition under the dealer mode conforms to the provisions of the accounting standards for enterprises;
(3) Whether there are significant differences between the distributor sales model and proportion of the issuer and comparable public companies in the same industry and the reasons;
(4) Whether the internal control related to dealer management is sound and effectively implemented;
(5) Whether there is any relationship between the issuer and the issuer;
(6) Whether the credit policy for dealers is reasonable;
(7) Combining with the dealer model, check the transaction records and bank operation records of dealers and issuers;
(8) Dealers' inventory, returns and major customers, and whether the products purchased by dealers can achieve end-customer sales.
(4) Sponsors and reporting accountants who adopt the franchise mode shall check whether the revenue recognition policy of franchise-related businesses conforms to the provisions of the Accounting Standards for Business Enterprises according to the key clauses of the franchise agreement, industry practices, the operating conditions of the franchisee, and the sales and income of the final customers. Where an issuer's franchisees frequently start or quit, the sponsor institution and the reporting accountant shall check whether the issuer's relevant income recognition policies are cautious, whether the income recognition of some unstable franchisees is appropriate, and explain whether the issuer's accounting treatment conforms to the provisions of the Accounting Standards for Business Enterprises in combination with the specific cooperation with relevant franchisees. The sponsor institution and the issuer's lawyer shall check the main contents of the issuer's franchise agreement and the operation process of the franchise business, and express their clear opinions on its legality and compliance.