According to a newly updated decision on administrative punishment disclosed on the website of the CSRC, the CSRC has filed a case for investigation and trial on the failure of diligence in the annual audit practice of Asia Pacific (Group) accounting firm (special general partnership) (hereinafter referred to as Asia Pacific Institute) Xiongan Kerong Environment Technology Co.Ltd(300152) , and decided to order the Asia Pacific Institute to make corrections, confiscate the business income of 600000 yuan and impose a fine of 600000 yuan; Wu Pingquan and Zhou Tiehua, then certified public accountants who signed the annual audit report of Xiongan Kerong Environment Technology Co.Ltd(300152) 2017, were warned and fined 50000 yuan respectively.
According to the investigation of the CSRC, there are false records in the audit report issued by Asia Pacific. There are false records in the Xiongan Kerong Environment Technology Co.Ltd(300152) 2017 annual report audited by Asia Pacific Institute. Xiongan Kerong Environment Technology Co.Ltd(300152) by altering the commissioning report date of 21 projects from the previous year to 2017 and recognizing the commissioning revenue in 2017, the profit in 2017 was falsely increased by 7178800.95 yuan, accounting for 17.16% of the total profit in Xiongan Kerong Environment Technology Co.Ltd(300152) 2017. On March 1, 2018, Asia Pacific Institute signed the engagement letter with Xiongan Kerong Environment Technology Co.Ltd(300152) to provide 2017 annual financial statement audit services for Xiongan Kerong Environment Technology Co.Ltd(300152) . From March 5 to May 11, 2018, Xiongan Kerong Environment Technology Co.Ltd(300152) paid audit service fee of RMB 600000 to Asia Pacific exchange. On April 23, 2018, the Asia Pacific Institute issued an unqualified opinion with emphasis on the item paragraph, emphasizing that the item is a major uncertainty of equity transfer and has nothing to do with Xiongan Kerong Environment Technology Co.Ltd(300152) operating revenue. The signing certified public accountants are Wu Pingquan and Zhou Tiehua.
Asia Pacific Institute failed to be diligent in the 2017 annual audit of Xiongan Kerong Environment Technology Co.Ltd(300152) . In the Xiongan Kerong Environment Technology Co.Ltd(300152) audit strategy memorandum, the Asia Pacific Institute took the total profit as the benchmark to determine the overall importance amount of the financial statements and the importance amount of the parent company as RMB 2.7 million; The amount of tolerable misstatement importance is 50% of the overall importance of the financial report, i.e. RMB 1.35 million; The critical value of misstatement is 5% of the overall importance of the financial report, i.e. 135000 yuan. During the audit, AsiaPacific did not properly perform the procedures related to fraud risk identification, assessment and response, effectively implement the sales and collection control test, effectively implement the income cut-off test, further audit the abnormalities of several high gross profit projects concerned, and pay no attention to the abnormal increase of income in December 2017, As a result, it did not find that Xiongan Kerong Environment Technology Co.Ltd(300152) altered the date of the commissioning report from the previous year to 2017, recognized the commissioning revenue in 2017, and falsely increased the profit of 2017 by 7178800.95 yuan.
The CSRC believes that the above acts of the Asia Pacific exchange constitute a situation in which “the securities service institutions fail to exercise due diligence, and the documents produced and issued have false records, misleading statements or major omissions”. The undersigned certified public accountants Wu Pingquan and Zhou Tiehua are directly responsible for the above acts.
(China Securities Journal · China Securities Network)
