Original title: No penalty for six! This accounting firm was severely punished by the China Securities Regulatory Commission. The client signed a “protection agreement” with the client for two consecutive years of financial fraud.
Yesterday, the China Securities Regulatory Commission notified the handling of the Shenzhen Tangtang Accounting Firm’s case. The responsible person of the relevant department of the China Securities Regulatory Commission stated that it intends to impose a “no one fine of six” administrative penalties on the Tangtang, and the relevant subjects will be transferred to the public security organs for suspected crimes.
Recently, the China Securities Regulatory Commission (CSRC) has performed the hearing procedures in accordance with the law on cases of violations of laws and regulations in the audit business of Shenzhen Tangtang Certified Public Accountants (referred to as Tangtang), and has heard the parties’ statements and defenses. The CSRC will make a penalty decision in accordance with the law. The subject of the audit in the Tangtang case is a listed company *ST Xinyi, which has been punished by the China Securities Regulatory Commission several times in recent years. Recently, the China Securities Regulatory Commission has performed hearing procedures for its serious financial fraud cases in its 2018 and 2019 annual reports, and will also follow the law. Make a penalty decision.
The person in charge of the relevant department of the China Securities Regulatory Commission stated that when Tangtang knew that *ST Xinyi’s annual report audit business had been “rejected” by other accounting firms, it signed an agreement with *ST Xinyi and promised not to issue an “unable to express opinion” in the audit report. “Or “negative opinions”, and require that in the event of being punished by the regulatory authorities, *ST Xinyi should be compensated. Its audit independence is seriously lacking, the audit procedures have many defects, the audit report contains false records and major omissions, and lacks due professional ethics and bottom line. The China Securities Regulatory Commission intends to impose a penalty of “no one fined six” on the court, and the relevant subjects will be transferred to the public security organs for suspected crimes.
The person in charge of the above-mentioned departments emphasized that the accounting firm is an important “gatekeeper” of the capital market, and its awareness of law-abiding, professional ability, and diligence are related to the vital interests of investors. Although the new “Securities Law” abolished the administrative licensing requirements for accounting firms to engage in securities business, it also greatly increased the legal liabilities for violations of laws and regulations. “Lowering the threshold” does not mean reducing the liability. This means that accounting firms have obtained a fair opportunity to participate in the capital market, but they must also bear corresponding responsibilities. Regardless of their size, they are equal in observing the law and treated equally in terms of regulatory requirements.
The person in charge of the relevant department of the China Securities Regulatory Commission pointed out that the China Securities Regulatory Commission will perform its duties strictly in accordance with the law, resolutely implement the “Opinions on Strictly Cracking Down on Illegal Securities Activities in accordance with the Law” by the Central Office and the State Council, and earnestly implement the “zero tolerance” policy, and severely punish any violations of laws and regulations. Do not lend, safeguard the legitimate rights and interests of investors and the healthy development of the capital market in accordance with the law.