In Kind Capital Contribution Verification Procedure

I. objective of examination

To verify whether the investors are in accordance with the provisions of the agreement, contract, and articles of association, and have their physical assets paid in time and in full. Company And handle the transfer of property rights.

Two. Verification procedures

General examination procedure:

(1) check whether the physical name, specification, quantity, price, and date of contribution of the physical capital contribution list are in conformity with the contents. Agreement , contracts, articles of association, etc. Regulations ;

(2) the state stipulates that assets assessment shall be carried out, and its evaluation report shall be consulted, and the relevant qualifications such as the purpose of the assessment, the scope and object of the assessment, the date of assessment, the assessment hypothesis, etc. shall be understood, and whether the relevant requirements for capital verification will be met.

(3) observe and monitor the number of physical objects and pay attention to their status and verify whether they are consistent with the physical contribution list.

(4) check the floor plan and location map of houses and buildings, verify their names, location, building structure, completion time, useful life and price basis, whether they conform to the provisions of agreements, contracts and articles of association, check property rights certificates such as real estate certificates, and verify whether property rights before investment belong to the investors.

(5) check the purchase invoice, cargo transport bill, bill of lading, insurance policy and vehicle driving permit, such as machine equipment, conveyance and material, and verify the ownership and valuation basis.

(6) check whether the physical transfer procedures are handled, whether the handover list is confirmed by the investors and the units being examined, and whether the delivery method, delivery time and delivery place of the material are in conformity with the stipulations of the agreement, the contract and the articles of association.

(7) if the inspection procedures are not completed, the inspection units and their contributors should sign a letter of commitment to complete the transfer procedures within the prescribed time limit.

(8) check whether the list of physical contributions is consistent with the detailed list of actual receipt of registered capital.

Special examination procedures for foreign-invested enterprises:

A registered accountant shall also implement the following procedures:

(1) in accordance with the regulations of the state, it is necessary to consult the entry exit inspection and quarantine bureaus or the other value appraisal institutions issued by the State Administration of quality supervision, inspection and quarantine and the Ministry of finance.

(2) check whether the objects listed in the property value appraisal certificate are consistent with the purchase invoice, the cargo transport list, the bill of lading, the customs inspection release list, the physical contribution list of the insurance documents and the checklist.

(3) observe and supervise the physical objects to verify whether the name, specification, quantity, value and so on are consistent with the relevant contents of the appraisal certificate of the property value.

(4) when the currency in kind is not in conformity with the currency of the registered capital and the bookkeeping standard currency, check whether the conversion rate is consistent with the agreement, the contract, the articles of association and the state regulations.

In the case of non initial capital contributions, CPA should also implement the following examination procedures to pay close attention to the actual receipt of registered capital:

(1) check the previous capital verification reports, recent accounting statements and audit reports.

(2) to obtain a written statement about the prior contribution and the contributor's non withdrawal of capital contribution to the subject to be examined;

(3) check whether the physical assets invested in the initial stage have been transferred to the relevant property right procedures.

(4) pay attention to whether there is any obvious abnormal situation between the units concerned and the related parties.

(5) if the client requests that the cumulative amount of the registered capital be verified, the CPA should review the actual receipt of the registered capital and carry out the necessary audit procedures.