The CSRC informed Kangdexin of the punishment decision in advance and confirmed its major financial fraud. The evaluation given to Kang Dexin by the CSRC is: the duration is long, the amount involved is huge, the means are extremely bad, and the illegal circumstances are particularly serious.
Ruihua Certified Public Accountants (hereinafter referred to as "Ruihua"), as the auditor of Kangdexin Annual Report, why is it still "invisible" in such a long time span and such a large amount of fraud?
Deliberately releasing water or failing in ability?
Kangdexin 20 10 was listed on the Shenzhen Stock Exchange on July 16, 2006. 20 12 On August 24th, Kangdexin Extraordinary General Meeting of Shareholders changed the accounting firm from Shenpengcheng to Guofu Haohua; On May 3, 2065438, Elliot Ngok and Guo Fuhaohua of China and Sweden merged into Ruihua Certified Public Accountants.
Since 20 12, all the annual reports of Kangdexin have been audited by Ruihua, and the annual report design cost has increased from10.9 million/year in the previous two years to 2 1 10,000/year. During the four years of financial fraud in Kangdexin, Ruihua collected a total of 8.4 million audit fees.
In four consecutive annual reports of Kangdexin from 20 15 to 20 18, Ruihua issued "standard unqualified opinions" on the annual reports of 20 15, 20 16 and 20 17; Only 20 18 of the annual report "can't express opinions". At this time, Kangdexin has been in deep crisis, and the outside world has questioned the company's financial fraud one after another. Ruihua finally dared not continue to speak for Kang Dexin.
According to the identification of the CSRC, during the period from June 20 15 to June 20 18, Kangdexin inflated its operating income through fictitious sales business, and inflated its operating costs, R&D expenses and sales expenses through fictitious procurement, production, R&D expenses and product transportation expenses. In the annual reports from 20 15 to 20 18, the inflated profits were 238 10/00000, 3.089 billion, 3.974 billion and 2.477 billion respectively, and the total inflated profits were1195438+million.
In addition to inflated profits, in the annual reports of Kangdexin from 20 14 to 20 18, there were related transactions that did not disclose the non-operating occupied funds of the controlling shareholders, provided related guarantees to the controlling shareholders, and did not truthfully disclose the use of raised funds.
Is it your own ability to make such a large-scale financial fraud that the audit institution has not known for so many years? Or deliberately release water?
Great auditors frequently step on thunder.
Ruihua, as a well-known accounting firm in China, has undertaken quite a lot of business in A shares. Take the audit of 20 18 annual report as an example, it has served 32 1 listed companies, ranking among the top three audit institutions, second only to Lixin and Tian Jian.
However, in recent years, Ruihua's projects have frequently had accidents and have been punished by the supervision.
The latest one was 65438 on June 4 this year, and the CSRC announced the punishment decision for Ruihua's behavior of issuing audit reports containing false records.
According to the written decision, Ruihua Company failed to perform its duties and issued false audit reports when auditing the financial statements of Hua Ze Co-Ni 20 13 and 20 14. The CSRC confiscated its business income of 6.5438+0.3 million yuan and imposed a fine of 3.9 million yuan.
Previously, on February 6, 20 12, Ruihua failed to diligently provide audit services for the annual report of Key Bridge Communication 20 12, and was ordered to rectify.
2017,6543810.6, Ruihua was not diligent in auditing the financial statements of Asia-Pacific Industry for 20 13, and the audit report issued contained false records, which was punished by the CSRC again.
2065438+On February 22, 2007, the Ministry of Finance and the China Securities Regulatory Commission announced that Ruihua failed to perform its duties diligently during the audit. In order to safeguard social public interests and capital market order, the Ministry of Finance and the CSRC decided to order the company to suspend undertaking new securities business from the date of receiving the second administrative penalty. From the date of the second administrative punishment, the rectification shall be completed and the rectification report shall be submitted within 2 months according to the written rectification plan submitted to the Ministry of Finance and the CSRC.
2065438+On February 28th, 2007, Guangdong Securities Regulatory Bureau issued a fine to Ruihua again. In 20 13, Qinshang Optoelectronics and its controlling shareholder Qinshang Group had a number of related transactions involving capital transactions, but they were not disclosed according to law, and the above transactions were financially handled by using virtual accounts. Ruihua, as the auditor of Qinshang Optoelectronics' 20 13 annual report, failed to perform due diligence and audit in accordance with auditing standards, and failed to discover the above related transactions between Qinshang Optoelectronics and Qinshang Group.
20 17, 17 On March 3, Ruihua, as the IPO auditor of Zhenlong Specialty, audited the financial statements of Zhenlong Specialty in 20 12, 20 13 and 20 14, and issued standard unqualified audit reports. Ruihua is not diligent and conscientious in the audit process, and there are false records in the audit report issued.
In addition, Ruihua was publicly condemned by the interbank market and received a warning from the share transfer company.
What will happen to Ruihua this time?
Ruihua was not mentioned in the CSRC's notification to Kangdexin. However, there are problems in the audited projects, and it is definitely difficult for the audit institutions to get rid of the relationship.
In the recent capital market, the word "Kang" has become famous. Except Kang Dexin, Kangmei Pharmaceutical Co., Ltd., the former has been informed of administrative punishment in advance, and the latter is still under investigation. As an auditor of Kangmei Pharmaceutical for many years, Zhong Zheng Zhujiang has also been investigated by the Securities and Futures Commission.
After being put on file for investigation, some listed companies announced the change of audit institutions. Among them, Quantong Education announced on May 30 that the case has not been closed because the Pearl River was put on file for investigation by the Securities and Futures Commission. In order to better promote this major asset restructuring, the company decided to change the audit institution hired by this major asset restructuring after careful study and friendly negotiation by both parties.
Many companies queuing in science and technology innovation board have also been affected. On May 24th, the progress of the Science and Technology Innovation Board in accepting applications from three enterprises with Zhongzheng Zhujiang as the accounting firm was changed to "suspended".
Compared with the above-mentioned things that have been punished many times, this Kangdexin incident can be described as the most serious case in Ruihua booth, and I am afraid that what awaits them is by no means light.