CCTV Beijing, April 17 (Reporter Sun Ruxiang Intern Wang Kexin) According to the official website of the Chinese Institute of Certified Public Accountants (hereinafter referred to as the "China Note Association"), since the start of the 2023 annual report season, the China Note Association has issued an interview letter to 6 accounting firms for the audit of the 2023 annual report of listed companies, respectively reminding of frequent changes in audit institutions, major uncertainties in the ability to continue operations, possible triggering of stock delisting conditions, and the risk of auditing the annual reports of listed companies undertaken near the disclosure date of the annual report.
Liu Zhigeng, a well-known financial and accounting audit expert, told CCTV Capital Eye that the purpose of the interview was to remind relevant firms that there may be certain practice risks, and that prevention and control measures should be taken in a targeted manner.
"The end of April is the deadline for the disclosure of annual reports, and there are not many days left. Certified public accountants and firms that have not yet issued audit reports must maintain sobriety and quality of practice and guard against practice risks. Liu Zhigeng said.
From March 21 to April 16, the China Injection Association issued a total of 7 interview letters to 6 certified public accounting firms, reminding them of audit risks and asking them to explain the audit of the 2023 annual reports of listed company customers.
Among them, Unitax Zhenqing Certified Public Accountants (Special General Partnership) was reminded of the audit risk of the annual report of listed companies undertaken near the disclosure date of the annual report.
According to the China Securities Association, some listed companies changed their audit institutions before the disclosure of their 2023 annual reports, and the reason for the change was that there were disagreements with the former certified public accountants on the relevant accounting treatment and audit procedures, and the former accounting firm could not meet the audit requirements of the company's annual report in terms of personnel arrangements, which attracted market attention, and the related matters had a significant impact and high audit risks.
Asia-Pacific (Group) Accounting Firm (Special General Partnership) (hereinafter referred to as "Asia-Pacific (Group)") and Guangdong Hengan Certified Public Accountants (General Partnership) were reminded of the audit risk of the annual reports of listed companies that may trigger the conditions for stock delisting.
On December 29, 2023, the Shanghai Stock Exchange issued the Guidelines for Information Disclosure of Delisting Risk Companies, which requires accounting firms to enhance their awareness of risk compliance, strengthen the quality control of audit practice, pay attention to the risk of material misstatement related to the risk of delisting, issue appropriate audit opinions, and prudently issue special verification opinions such as deduction of operating income and determination of non-recurring profit and loss.
The China Note Association reminds that certified public accountants should focus on the following aspects when performing relevant audit business: First, do a good job in risk assessment. The second is to increase investment in anti-fraud resources. The third is to pay full attention to revenue audits. The fourth is to assess the impact of the non-standard audit opinion on the financial statements of the current period.
Beijing Chengyu Certified Public Accountants (Special General Partnership) and Shenzhen Yongxin Ruihe Certified Public Accountants (General Partnership) were reminded of the audit risk of the annual reports of listed companies with significant uncertainty in their ability to continue operations.
Some listed companies are affected by factors such as the external environment and internal operation and management, and there are significant uncertainties in their ability to continue operations, and the audit risk is high. To this end, the China Note Association reminds certified public accountants to focus on the following aspects when performing relevant audit business: First, fully identify matters or situations that have major doubts about the listed company's ability to continue operations. The second is to properly evaluate the management's assessment of the ability to continue as a going concern. The third is to reasonably judge whether the matters or circumstances that give rise to significant doubts about the ability to continue operations constitute material uncertainty. Fourth, properly determine the content of the audit report and the type of opinions.
Zhongxing Cai Guanghua Certified Public Accountants (Special General Partnership) and Asia-Pacific (Group) were reminded of the audit risks of the annual reports of listed companies that frequently change their audit institutions.
The China Securities Association said that in the daily supervision, it was found that a small number of listed companies frequently changed audit institutions. Among them, some listed companies frequently change the auditors of different annual financial statements, and some listed companies change auditors several times in the same year. Some accounting firms have concentrated on undertaking the audit of the annual reports of listed companies that frequently change their audit institutions.
To this end, the China Note Association reminds relevant accounting firms and certified public accountants to focus on the following aspects when performing relevant audit business: First, strengthen quality management. The second is to pay attention to the communication between former and former CPAs. The third is to maintain professional skepticism. Fourth, pay attention to the impact of non-standard audit opinions in the previous period on the current period.
It is worth noting that Asia-Pacific (Group) was reminded of two risk points, including the risk of auditing the annual report of listed companies that may trigger the conditions for stock delisting, and the risk of auditing the annual reports of listed companies that may trigger the conditions for stock delisting.
Liu Zhigeng said that the interview is a conversation reminder of the universal, important or emerging problems of some accounting firms. "The interview is very targeted, not only directly targeting the practice problems and risk points that may exist in the firm, but also proposing effective prevention and control measures for these problems. Liu Zhigeng said that the problems reflected in the interview with one firm will also have a strong reminder and warning effect on other accounting firms.
Liu Zhigeng said that at present, there is not much time left to require listed companies to disclose their annual financial reports at the end of April, and at the most critical moment of the current annual report audit, the time is tight, the task is heavy, and the responsibility is large, and the accounting firm must pay attention to it, and it is not perfunctory and formalistic to the audit work in order to complete the task as soon as possible. It is necessary to maintain the sobriety and quality of practice, and guard against practice risks. (CCTV Capital Eye)
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