The former audit clients of Zhongtian Qin's listed companies were mostly Guangdong, especially Shenzhen. In 2000, there were 64 audit clients, of which 33 were registered in Shenzhen, and the three firms that got the most clients in 20001year were all local firms in Shenzhen: Dahua Tiancheng (9), Nanmin (8) and Shenzhen Pengcheng (6). In addition, the client's choice of firm has a high correlation with the client's signature CPA joining the new firm, and the clients exceeding 1/3 "advance and retreat together" with their signature CPA.
2. It is difficult to find an audit institution.
Since Zhongtianqin Certified Public Accountants was identified as a major violation by the relevant departments, listed companies that once hired Zhongtianqin to conduct financial audit have jumped ship. Just over a month before the disclosure of the 200 1 annual report of Yinguangxia Project-April 19, 2002, the company has not yet determined which accounting firm will audit the financial report. People in the industry generally believe that due to the particularity of Yinguangxia, generally speaking, accounting firms may not be willing to be hired. In this case, can China learn from Enron's practice in the United States and appoint an audit institution for Yinguangxia to ensure the normal disclosure of Yinguangxia's annual financial report, so as to protect the interests of investors? However, due to the systematic financial fraud of the bank, it is difficult to audit with the general procedural audit method. Therefore, even if Yin starts to hire an audit institution now, it is difficult to complete the audit work in a short time.
3. Hired Shanghai Shang Hui Certified Public Accountants.
On April 8, 2002, less than two weeks before the publication of the annual report, Yin finally announced that he would hire a Shanghai accounting firm to audit the company's accounting statements, verify its net assets and provide other related consulting services. The person in charge of Yinguangxia project of Shanghai Shang Hui Certified Public Accountants Co., Ltd. said that whether Yinguangxia is a problem company or not, it always needs an accountant to audit it. Shanghai Shang Hui will treat Yin Guangxia differently and complete the audit in a fair and independent position. As early as the beginning of February, 2002, when Zhonglian Industry began to reorganize Yinguangxia, Shanghai Shang Hui began to investigate the net asset value of Yinguangxia. So far, it can be said that a lot of work has been done and Yin Guangxia is also familiar with the situation. Yin Guangxia also very much hopes that they will audit the annual report, because only by continuing to do so can we successfully complete the annual report audit on time.
4. Renew the appointment of Zhong Qin Wan Xin Certified Public Accountants.
In August, 2002, Xia Guang, the st Bank, which had twice postponed the disclosure of the semi-annual report, announced that Shanghai Shang Hui Certified Public Accountants had resigned from the company because the company and Shanghai Shang Hui Certified Public Accountants failed to reach an agreement on the terms of the 2002 interim audit business, and now it is planned to hire Zhong Qin Wan Xin Certified Public Accountants to audit the company's 2002 interim accounting statements to verify its net assets and other related businesses, with an audit period of 65,438+0 years. Why does the company hire an accounting firm? Can the newly hired accounting firm complete the semi-annual audit within the prescribed time limit? For ST Yinguangxia, whose life depends on the semi-annual report, it is possible not to withdraw from the market only if the semi-annual report is disclosed before August 3 1 and the semi-annual report is guaranteed not to lose money. Whether this semi-annual report can be profitable is very important for accountants, and the current accounting firms attach great importance to it.
Control of your own risks. ST Yin Xia Guang said that although the company hired Shanghai Shang Hui Certified Public Accountants for 65,438+0 years, the final contract was only the audit-related business reported in 2006,5438+0 because the two parties signed contracts for various businesses respectively. During the semi-annual contract negotiation in 2002, Shang Hui thought that the audit workload was getting bigger and bigger, and the proposed audit fee was unacceptable to the company. The person in charge of Yinguangxia project of Shanghai Shang Hui Certified Public Accountants said that the mutual choice between listed companies and accounting firms can be said to be a commercial act. There is a big gap between the audit fee required by the firm and the amount expected by the company. In addition, Yin Guangxia's current financial situation is not good, and they choose to quit for economic benefits. At present, the staff of Zhong Qin Wan Xin Certified Public Accountants has been stationed in Yinguangxia to start work. The firm said that the workload of the audit of Yinguangxia's semi-annual report had been judged in the previous inspection, and the personnel arranged this time were of high quality and large scale, which should be able to complete the work on time.
5. Refusing to issue an audit opinion.
In April, 2004, due to the great uncertainty of continuous operation, Zhong Qin Wan Xin Certified Public Accountants refused to issue an audit opinion on the 2003 annual report published by ST Yinguangxia a few days ago. ST Yinguangxia achieved main business income of11406,300 yuan in 2002, down 66% year-on-year, net profit of-61098,600 yuan, earnings per share of -0. 12 yuan, and adjusted net assets per share of-1. The audit report shows that ST Yinguangxia still has a large number of debts due and joint liability for external guarantee. Among them, the overdue long-term and short-term bank loans were 495.546 million yuan, the major litigation involved in borrowing or issuing bonds was 628.5574 million yuan, and the litigation involved in default of payment was 65/kloc-0.58/kloc-0.00 million yuan; In addition, the total contingent liabilities are relatively large, but they are still unpredictable; At the same time, the company also faces the possibility that minority shareholders may claim compensation in civil litigation. As the main operating assets of ST Yinguangxia are in the state of mortgage, litigation preservation or enforcement, the company lacks sufficient liquidity to solve the debt problem.
6. Forgers will be punished by law.
According to the current Standard Provisions on Prosecution of Economic Crime Cases, the company provides false financial and accounting reports to shareholders and the public or conceals important facts, resulting in direct economic losses of more than 500,000 yuan to shareholders or others; Or lead to the cancellation of listing qualification or suspension of trading, it shall be investigated. On September 6, 2003, the Intermediate People's Court of Yinchuan City, Ningxia Hui Autonomous Region made a first-instance judgment on Yin's criminal case. Dong Bo, former chairman and chief financial officer of Xia Guang, was sentenced to three years' imprisonment and fined RMB 654.38 million. At the same time, the court sentenced the former vice chairman and president of the board of directors of Yinchuan Xia Guang, Ding, the former director, chief financial officer and chief accountant of Yinchuan, and Yan Jindai, the former vice chairman and general manager of Tianjin, to two years and six months' imprisonment and fined them 30,000 yuan to 80,000 yuan. Defendants Xu, a partner of Shenzhen Zhongtianqin Certified Public Accountants, were sentenced to two years and six months in prison, two years and three months in prison and fined 30,000 yuan.
7. Civil litigation
Article 4 of the "Several Provisions on the Trial of Civil Liability Cases of Intermediaries" (the first draft) drafted by the relevant departments of our country stipulates: "If a practitioner appointed by an intermediary violates the practice standards and fails to pay great attention or loyalty in the course of practice, causing direct economic losses to the client, he shall refund the entrustment fee paid by the client and bear the corresponding liability for compensation. If the practitioners designated by the intermediary agency have strictly abided by the practice standards, are diligent and conscientious, and cannot find false ingredients, the intermediary agency will not bear civil liability. " This document shows that the legal profession in China has attached importance to the role of independent auditing standards.
On July 30, 2002, Yinchuan Intermediate People's Court of Ningxia officially accepted the case of four shareholders of Shanghai Yangshan Elementary School v. Yin for infringement dispute over false securities information disclosure. On April 20, 2004, Yinchuan Intermediate People's Court issued a notice of responding to the lawsuit to ST Yinguangxia, accepting the case of civil compensation dispute between the company and Chen Shouhua. This is after July 2002, Yinchuan Intermediate People's Court, which emphasized "punishment before people", once again accepted the civil compensation case against Yin's false statement.