Zhongxin Jingwei, January 11 - Yongtuo Certified Public Accountants (Special General Partnership) (hereinafter referred to as Yongtuo) was warned due to five violations such as employee buying and selling, auditing customers, etc.
Screenshot of Jiangsu Securities Regulatory Bureau** (the same below).
According to the information released by the Jiangsu Securities Regulatory Bureau on the 11th, the bureau carried out an independent inspection of Yongtuo. After investigation, it was found that Yongtuo had the following problems:
1. There is a contingent fee arrangement.
Some of the IPO projects of Yongtuo have contingent fees or similar arrangements, such as some projects in the audit business agreement stipulates that after the approval of the issuance and listing or listing application, the company to be listed will give a certain reward or differential service fee; The service fees for assistance verification and feedback or financial statement review and capital verification agreed in some projects are obviously high. The above behavior violates Article 54 of the Code of Professional Ethics of the Chinese Certified Public Accountants No. 4 - Requirements for Independence in Audit and Review Engagements (2020).
Second, the staff buy and sell audit customers**.
Yongtuo has not established an effective control mechanism for employee trading; There is a situation where the members of the audit project team buy and sell the audit customers of the project team to which they belong. The above situation violates Article 56 of the Quality Management Standards for Accounting Firms No. 5101 - Business Quality Management (2020) and Article 67 of the Code of Professional Ethics of the Chinese Certified Public Accountants No. 4 - Requirements for Independence in Audit and Review Business (2020).
3. Failure to rotate in accordance with regulations.
Yongtuo did not implement effective management of the time limit for CPAs to perform PIE audits, and the partner of the quality control review of individual listed companies undertaken by the CPA for six consecutive years from 2015 to 2020 was the same person, and it was not rotated in accordance with the regulations. The above behavior violated Articles 87 and 88 of the Code of Professional Ethics of the Chinese Certified Public Accountants No. 4 - Requirements for Independence in Auditing and Review Engagements (2009).
Fourth, there is a lack of insider information management.
Yongtuo did not register and manage insiders, and did not establish a file of insiders. The above behavior violated Article 8 of the Guidelines for the Supervision of Listed Companies No. 5 - Registration and Management System for Insiders of Listed Companies (CSRC Announcement 2022 No. 17).
5. Failure to establish a complete independent management system.
First, Yongtuo did not designate a special partner to be responsible for complying with the independence requirements; Second, Yongtuo did not design, implement, and operate monitoring procedures related to independence; Third, Yongtuo has not put in place appropriate policies and procedures for accountability for violations of independence. The above behavior violates the provisions of Articles 39, 79 and 92 of the Quality Management Standards for Accounting Firms No. 5101 - Business Quality Management (2020).
The Jiangsu Securities Regulatory Bureau pointed out that the above-mentioned behavior of Yongtuo violated the provisions of Article 52 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 40 of the CSRC) and Article 46 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC), and according to the provisions of Article 55 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC), the Bureau decided to take supervision and management measures to issue a warning letter to Yongtuo, and included it in the market integrity file.
At the same time, two employees of the buying and selling audit client** were also named by the regulator.
According to the decision of the Jiangsu Securities Regulatory Bureau on the measures to issue a warning letter to Chen Wei, Yongtuo accepted the commission to audit the 2022 financial statements of Suzhou Hengjiu Optoelectronics Technology Co., Ltd. *** hereinafter referred to as ST Hengjiu) and issued an audit report on April 27, 2023 (Yongzheng Shen Zi 2023 No. 110030). Chen Wei, as a member of the ST Hengjiu project team, violated the provisions of Article 42, Paragraph 2 of the ** Law by buying and selling ST Hengjiu** during the audit of the 2022 annual report.
In accordance with the provisions of Article 170, Paragraph 2 of the ** Law and Article 55 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC), the Jiangsu Securities Regulatory Bureau decided to take supervision and management measures against Chen Wei by issuing a warning letter, and included it in the market integrity file.
According to the decision of the Jiangsu Securities Regulatory Bureau on the measures of issuing a warning letter to Wang Yakun, Yongtuo accepted the commission to audit the 2022 annual financial statements of Southern Black Sesame Group Co., Ltd. *** hereinafter referred to as Black Sesame) and issued an audit report on April 28, 2023 (Yongzheng Shen Zi 2023 No. 110032). Wang Yakun, as a member of the black sesame project team, bought and sold black sesame during the audit of the 2022 annual report, which violated the provisions of Article 42, Paragraph 2 of the ** Law.
In accordance with the provisions of the second paragraph of Article 170 of the ** Law and Article 55 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC), the Jiangsu Securities Regulatory Bureau decided to take supervision and management measures against Wang Yakun by issuing a warning letter, and included it in the market integrity file.
According to the data, in 2000, Yongtuo Certified Public Accountants obtained the first relevant business audit qualifications. In 2020, it passed the dual filing review of the Ministry of Finance and the China Securities Regulatory Commission, and can engage in first-class service audit business in accordance with the law. Since 2002, it has been ranked among the top 100 accounting firms in China for 20 consecutive years. At present, the registered capital is 15 million yuan. (Zhongxin Jingwei app).
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