Expert tips for a long time

By forwarding the Ministry of Finance No. 42 accounting information quality inspection notice:

The wholly-owned subsidiary of Malaysian listed company Rambo Group Co., LTD in China, Fujian Essenmiu Technology Development Co., LTD., has only 5 employees, with annual falsely increased revenue of about 150 million yuan and annual falsely increased profit of 30.91 million yuan. Under the joint inspection of China and Malaysia, discover the truth! Fujian Essen think the implementation of financial fraud, fake huge assets and profits, its actual controller and financial responsibility has been criminal control.

2. The audit firm was given a warning, confiscated 60,000 yuan of illegal income and fined 300,000 yuan. Meng Xiang, a certified public accountant, was revoked of his CPA certificate.

International cooperation in the financial sector is getting closer and closer, and cross-border is not a haven for fraud. In the face of strong international cooperation and big data, everything together is transparent. Firms and other intermediary institutions should also strengthen internal control, from the business personnel need to uphold the professional spirit, with a professional attitude towards the business and customers, otherwise it will harm both harm themselves.

If you need to check your financial compliance or solve more difficult financial and tax problems, please contact Yijiu experts for free consultation

Announcement of Ministry of Finance of the People's Republic of China on Quality Inspection of Accounting Information

No. 42

In accordance with the Memorandum of Cooperation on Cross-border Accounting and Audit Law Enforcement between the Ministry of Finance of the People's Republic of China and the Securities Supervision Commission of Malaysia (hereinafter referred to as the "Memorandum between China and Malaysia") and the Malaysian side's request for joint investigation, and with the strong support of the Ministry of Public Security, the Ministry of Finance conducted a joint investigation on the Malaysian listed company Rambo Group Limited (according to the Malaysian side's Request for Joint investigation, Company name for Lambo Group Berhad, hereinafter referred to as the "blue Group") is a wholly owned subsidiary in China fujian Essen thinking science and technology development co., LTD. (hereinafter referred to as the "fujian Essen thinking) and zte fortune guanghua certified public accountants (special ordinary partnership) shandong branch (hereinafter referred to as the" zte fortune guanghua) shandong branch office carries out supervision and inspection, and shall be investigated for responsibility according to law. The relevant information is announced as follows:

First, Relevant background

On August 20, 2018, in the State Council premier li keqiang and witness, the then prime minister mahathir mohamad, Malaysia, the then Treasury secretary liu and Malaysia securities supervision committee chairman, o ranjit singh signed in Beijing the horses in the memorandum, in accordance with respect for the sovereignty, the principle of equality and mutual benefit, mutual dependence strengthen accounting audit law enforcement cooperation. In August 2019, Ranjit Ajit Singh visited the Ministry of Finance and handed over clues on the alleged violations of laws and regulations by Fujian Essen Musi and related accounting firms. He asked the Ministry of Finance to assist in verification.

According to "accounting law of the People's Republic of China" and relevant provisions of the certified public accountant law of the People's Republic of China, the Ministry of Finance organization departments in fujian province of fujian Essen thinking about 2016-2018 annual accounting information quality inspection, and Qingdao by the Ministry of Finance supervision bureau for verification of zte's goods guanghua shandong branch as the 2018 annual audit report issued Essen thinking of fujian. After investigation, Fujian Esensi 2016-2018 annual financial report serious fraud and suspected of crime; Zte Caiguanghua Shandong Branch is seriously deficient in audit procedures, and is responsible for the audit of Fujian Essenmus' 2018 annual financial statements.

Two, Fujian Esen Musi serious fraud and suspected of crimes

According to the publicly disclosed information of Malaysian capital market, the operating revenue of Fujian Essenmusi in 2016-2018 was 27.01 million yuan, 133.4 million yuan and 151.74 million yuan respectively, and the net profit was 19.09 million yuan, 30.35 million yuan and 30.91 million yuan respectively. At the end of 2018, bank deposits of 130 million yuan and financial products of 50 million yuan; In 2018, 99 percent of Lanbao Group's revenue came from Fujian Essenmi.

The inspection found that Fujian Esenmous continued to lose money from 2016 to 2018, with no more than 5 employees, annual operating revenue never exceeding 60,000 yuan, and total profit of -30,100 yuan, -46,000 yuan and -86,200 yuan respectively. The actual bank deposit at the end of 2018 was less than 50,000 yuan, and it did not hold any financial products. After forensic appraisal, Fujian Essenmiu provided the 2016 and 2017 annual audit reports to the accounting firm in Malaysia responsible for the audit of Rambo Group (according to the Malaysian party's request for cooperation, the firm's name is Morison Anuarul Azizan Chew, hereinafter referred to as the Malaysian Party firm). As well as the 2018 bank confirmation letter, bank statement, purchase and sales contract and other supporting documents provided to ZTE Caiguanghua Shandong branch are all forged.

Checked by the public security organ, fujian Essen actual control meditate being elegant, finance director Lin mou yu during the 2018 financial statements audit, through fake bank and associated companies, relevant unit seal, the zte fortune guanghua providing false bank statements, bank shandong branch office confirmations, corporate financial management comprehensive service agreement, confirmations and other materials needed for auditing; Zte Caiguanghua Shandong Branch issued an audit report based on the above materials. Ding Mouya and Lin Mouyu are suspected of forging the seals of companies, enterprises, institutions and people's organizations, and have been taken compulsory measures by the relevant departments pending trial on bail.

Iii. Zte Caiguanghua Shandong Branch is responsible for the audit of Fujian Essenex's 2018 annual financial statements

Zte Caiguanghua Shandong Branch signed a contract with Fujian Essenmiu and Malaysia Office respectively, agreeing that it will audit the 2018 annual financial statements of Fujian Essenmiu as a component auditor of Fujian Essenmiu Office. According to the "Inter-firm Report Opinion" issued by ZTE Caiguanghua Shandong Branch to the Malaysian firm, the audit considers that the 2018 special purpose financial information of Fujian Essenso has been prepared in accordance with the provisions of the Standards in all material aspects.

It was found that 4 people were recorded in the audit papers of ZTE Caiguanghua Shandong Branch to carry out on-site audit, but only 1 person was actually entrusted to carry out on-site work. When I went to the bank for confirmation, I was accompanied by the staff of Fujian Esen Miu. The confirmation letter that should be submitted to the bank was intercepted and transferred by the enterprise. The process of confirmation letter was out of control, and I did not maintain proper professional suspicion on the doubts such as the company's reserved seal that needed bank verification on the return letter. The bank statement obtained was not obtained directly from the bank, but provided by the enterprise, resulting in the failure to find the discrepancies in the bank deposit accounts of the enterprise; For important subjects such as revenue and cost, only part of framework-type procurement contracts and sales contracts were obtained without sufficient and appropriate audit evidence, and relevant data were not found to be falsified. The audit project was not integrated into the business system of ZTE Caiguanghua General Office for unified management, and the relevant audit report was issued by the head of ZTE Caiguanghua Shandong Branch without internal review.

The above facts show that ZTE Caiguanghua Shandong Branch did not maintain due professional suspicion, audit procedures were seriously missing, did not obtain sufficient and appropriate audit evidence, issued the "inter-office Report Opinion" to the Malaysian firm and issued inappropriate audit opinions, and bears major audit responsibilities.

Treasury based on the law of the People's Republic of China on certified public accountants law "article 39 of the regulations, give zte fortune guanghua certified public accountants (special ordinary partnership) warning, confiscation of illegal income 60000 yuan, and concurrently impose a fine of 300000 yuan of administrative punishment, give signature CPA meng cheung administrative penalty shall be revoked the certificate of certified public accountants. According to the China-Malaysia Memorandum, the Ministry of Finance will inform the Securities Supervisory Commission of Malaysia of the above.