Ⅰ. The Responsibility of the Management for the Accounting Statement
It is the responsibility of the Management of the Company to prepare the financial statements in accordance with regulations of Accounting Standards for Business Enterprises and Enterprise Accounting System. The responsibility includes: (1) Design, implement and maintain the internal control related to the preparation of the financial statements as a way to make the financial statements free from misreporting arising from fraudulence or mistakes; (2) choose and apply appropriate accounting policies; (3) make a reasonable accounting assessment.
Ⅱ. The Responsibility of Certified Public Accountant (CPA)
Our responsibility is to put forward audit opinions about the financial statements on the basis of conducting an audit. We conducted the audit in accordance with regulations of Chinese CPA Standards on Auditing. Chinese CPA Standards on Auditing provides that we shall comply with professional ethics, plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from any major misreporting.
An audit includes the implementation of audit procedures in a bid to obtain audit evidence related to the amount and disclosure of the financial statement. The selection of audit procedure is based on the judgment of CPA, including the assessment on major misreporting risks of the financial statement arising from fraudulence or mistakes. When examining risks, we took into consideration the internal control related to the preparation of the financial statement as a way to design appropriate audit procedures, but the purpose is not to voice opinions on the efficiency of the internal control. An audit also comprises opinions on whether audit policies selected by the management are appropriate and the accounting estimate is reasonable so as to examine the overall presentation of the financial statement.
We believe that the audit evidence we have obtained are sufficient and appropriate, which has served as the foundation for audit opinions.
Ⅲ. Audit Opinion
We believe that the financial statement of the Company has been prepared in accordance with regulations of Accounting Standards for Business Enterprises and Enterprise Accounting System, and the financial statement truly show the financial position of the Company on Dec. 31, 2009 and its operation results and cash flow for the year 2009.