bet365casinonodepositbonus| Well-known accounting firm fined!
editor 2024-05-13 21:27:08 Home 39
Strict regulatory signals continue to be released, and well-known accounting firms have received regulatory fines.
On May 13, Dahua Accounting firm issued a statement on its official WeChat account that Jiangsu Securities Regulatory Bureau imposed administrative penalties on the firm and related personnel according to law for failing to perform its duties diligently during Jin Tongling's annual financial report audit.
It is reported that Dahua Institute recently sent a letter to customers saying that the administrative penalty will not affect the audit business of the 2024 annual report. However, since the evening of May 12, a large number of listed companies have announced that they will cancel the re-employment of Dahua as the audit institution for 2024 and cancel the relevant motion at the annual general meeting of shareholders in 2023.
Let's look at the details--
The latest statement of Dahua Institute:
Deep sorrow and deep introspection
After the news of "suspended business" and "punishment" came out one after another, on the afternoon of May 13, Dahua issued the latest statement explaining the recent punishment.
According to Dahua, on May 10, 2024, the Jiangsu Regulatory Administration of the China Securities Regulatory Commission issued a written decision on administrative penalty to Dahua Accounting firm (Special General Partnership): during the audit of the annual financial statements of Jintongling Technology Group Co., Ltd., failing to do its duty diligently, Dahua and related personnel were imposed administrative penalties in accordance with the law.
Dahua said that it sincerely accepts the punishment decision of the regulatory authorities, consciously accepts the supervision of various regulatory agencies, corporate customers and all sectors of society, and carries out comprehensive rectification and reform as required, and organizes profound self-reflection within the scope of the whole institute.
According to Dahua, as a domestic accounting firm with a certain scale and influence after 40 years of development and training, the punishment reflects the gap that Dahua has in dealing with the new situation, new tasks, and new challenges. deficiencies in risk awareness, internal governance, and quality control. "for this,Bet365casinonodepositbonusWe are deeply saddened and ashamed, apologize to the customers and partners affected by this, and express our deep gratitude to the partners from all walks of life who have still given us firm support and trust during this difficult period. "
Dahua Institute further said that it will learn lessons, face difficulties, face deficiencies, and solve problems. In line with the attitude of being responsible to the market, customers and employees, Dahua Institute will firmly develop confidence, adhere to the bottom line of integrity, adhere to practice standards, resolutely implement the professional responsibility of financial and accounting supervision, and earnestly perform the duties of "gatekeeper" in the capital market.
Dahua said that it will fully implement the requirements of regulators, improve risk control standards, enhance practice ability and level, and improve the internal governance system and quality management system. "We will always adhere to high standards of service and audit quality, serve national construction, social progress, economic development and public interest as our responsibility, continue to provide higher quality professional services, and return public expectations and customer trust."
Financial fraud involving money and psychic affairs
The securities firm was suspended from recommending business for six months.
The Dahua Institute was fined by the Jiangsu Securities Regulatory Bureau for financial fraud involving money and psychics.
In April 2023, Jin Tongling announced that in the process of preparing the financial statements in 2022, due to the excessive amount of performance pre-loss, the company's financial situation was self-examined and found that there were major errors and retroactive adjustments. After retroactive adjustment, Jin Tongling reduced the undistributed profit at the beginning of 2021 by 4%.Bet365casinonodepositbonusThe net profit in 2021 was adjusted from 19.863 million yuan to-48.0457 million yuan.
In June 2023, Jin Tongling was placed on file for investigation by the Securities Regulatory Commission. In January this year, the administrative penalty from Jiangsu Securities Supervision Bureau officially landed. According to the investigation, Jin Tongling falsely increased or decreased profits for six consecutive years from 2017 to 2022, accounting for 103.06%, 133.10%, 31.35%, 101.55%, 5774.38% and 11.83% of the company's total disclosed profits (absolute value), respectively, resulting in false records in the company's annual reports for the corresponding years.
In the end, Jin Tongling was ordered to correct, given a warning and imposed a fine of 1.5 million yuan. Several "Dong Jiangao" at that time were also given a warning and a fine.
In retrospect, from 2012 to 2016, Jin Tongling's auditor was Zhonghui Accounting firm. In 2017, when financial fraud began, Dahua Institute became the annual audit agency of Jin Tongling, and issued a standard unqualified audit conclusion for Jin Tongling for many years in a row.
In addition, Huaxi Securities, which undertook the recommendation project of Jin Tongling's non-public stock offering in 2019, was also fined by Jiangsu Securities Regulatory Bureau.
On the evening of May 5, Huaxi Securities announced that it had been suspended from sponsor business for six months by Jiangsu Securities Regulatory Bureau, from April 28 to October 27, 2024. The two sponsor representatives are determined to be inappropriate candidates and shall not hold the relevant duties or actually perform the above-mentioned duties in the securities issuance and listing recommendation business of securities companies within 2 years from the date of decision on regulatory measures.
Listed companies "queue" to terminate the contract
According to public information, Dahua is the earliest national brand of accounting firms in China. From 2011 to 2021, Dahua Institute ranked among the top 10 in the comprehensive ranking of the China injection Association for 11 consecutive years and ranked seventh in 2021.
According to the official website, Dahua accounting firm has more than 1500 certified public accountants, more than 500 listed company clients, and more than 10,000 audit clients all the year round.
However, in recent years, Dahua Institute has frequently supervised and punished many times. In March 2023, Dahua was fined a total of 3.6792 million yuan and two certified public accountants were warned and fined 50, 000 yuan for false records in the 2016 annual audit report and failure to perform their duties diligently. Information from the China injection Association shows that Dahua Institute has also been punished by Beijing Securities Supervision Bureau, Guangdong Securities Supervision Bureau, Shenzhen Securities Supervision Bureau and other places in the last three years.
Recently, a "letter to customers" sent by Dahua has been circulated on the Internet. According to the letter, Dahua Institute received the decision on Administrative punishment issued by Jiangsu Securities Regulatory Bureau on May 10, and was suspended from securities service business for six months (from May 10, 2024 to November 9, 2024), and resumed securities service business on November 10, 2024.
In a letter to clients, Dahua said that the administrative penalty would not affect the audit business of the 2024 annual report, and that there were no legal obstacles to the appointment of what Dahua called the 2024 annual report auditor.
However, since the evening of May 12, a number of listed companies have announced that they will cancel the re-employment of Dahua as audit institution in 2024 and cancel the relevant motion at the annual general meeting of shareholders in 2023.
Among them, most listed companies stated that the reason for canceling the cooperation was that Dahua Institute's "recent relevant matters have yet to be further verified by the company." After consultation between the two parties, the relevant proposals were cancelled based on the principle of prudence. Companies such as Boss Software and Haixin Food made it clear that they decided to cancel the renewal of employment due to administrative penalties imposed on Dahua.