[ad_1]
Original title: China Securities Regulatory Commission: Strengthening Accounting Supervision and Improving the Quality of Financial Information
● Our reporter Zan Xiuli and Ni Mingya
On the 19th, the China Securities Regulatory Commission notified the inspection and management of auditing and evaluation institutions in 2020. The China Securities Regulatory Commission emphasized that in the next step, it will continue to strengthen the accounting supervision of the capital market. , will promote audit and evaluation institutions to comprehensively improve their practice capabilities, build a benign practical ecology, effectively improve the quality of capital market financial information. and serve high-quality economic development.
In order to further optimize the green practice of audit and evaluation agencies, consolidate the responsibilities of the “gatekeepers”, urge the audit and evaluation agencies to standardize their practices and improve the quality of the capital market, especially the financial information of listed companies, in 2020, the CSRC organizational system will provide a comprehensive review of the two audit institutions 2 assessment agencies will conduct full inspections, randomly checking 31 audit items and 19 assessment items in total; conducting special inspections on 11 audit items and 7 assessment items; organization and performance of special audits on the occupation of the majority shareholders of listed companies, with a total of 82 random inspections. Audit items: All securities regulators independently inspected 217 audit items and 37 assessment items based on actual conditions in their jurisdictions.
The China Securities Regulatory Commission noted that the inspection found the following problems: in terms of institutional management, internal control is generally imperfect, the integrated management of headquarters branches is not in place, the quality control system and independence management are flawed, and qualified review is formalized, or sometimes common problems such as charging occur. Individual institutions did not maintain independent operations with their affiliated groups, business income was calculated twice, presentation information was inaccurate, and branch management was chaotic. In addition, there are also personnel management issues, such as individual responsible personnel not cooperating with inspection, the signing of asset appraisers who are not actually involved in project practice, and professionals illegally buying and selling stocks.
In terms of auditing practice, in addition to improper implementation of basic procedures such as common letter certificates, supervision, analysis procedures, audit sampling, cut-off tests, and related party audits, there is a lack of suspicion of practice, significant anomalies and anomalies in important audit evidence Signs of inattention to reasonable care and failure to take additional response measures are more prominent. Insufficient consideration of fraud risks in some projects; internal control tests are mere formalities; audit procedures for goodwill impairment tests do not exist, especially in the division and change of groups of assets; audit evidence for the factoring business is not sufficient, and is not correct Investigate the authenticity of the core business related to accounts receivable; the not unqualified audit opinion is not based on a sufficient basis and the type is inappropriate; professional judgment is obviously inappropriate and no material misstatement related to government subsidies has been identified; no company suspected of being incorporated through fictitious corporate financial fraud.
In terms of appraisal and practice, in income method appraisal, the basis for forecasting the main parameters like operating income and its growth rate, gross profit rate, discount rate, etc., is not sufficient and does not adequately explain that the forecast trend is quite different from historical performance and actual operating conditions and industry conditions. The questions of rationality and sustainability remain pending. On-site investigation of some projects is not under way, the collection of important data such as contracts and orders is not enough and verification is not cautious; the security type of the investment security is not selected correctly; the calculation of the working capital is incorrect; the criteria for selecting comparable companies in the market method and the income method are inconsistent and selected The result is inappropriate; the determination of multiple parameters involving the reference land price coefficient correction method in land evaluation is not reasonable; goodwill impairment assessment did not pay attention to the rationality of the change in the scope of the asset group, and the assessment method is used incorrectly; financial expenses in the income method evaluation are obvious The calculation error of, has a greater impact on the evaluation result.
The China Securities Regulatory Commission stated that on the basis of this comprehensive inspection and special inspection, it intends to issue warnings to 8 secondary audit institutions, 28 certified public accountants, 6 secondary appraisal agencies, 27 asset appraisers and 6 practitioners illegally trading stocks. The administrative oversight measures of the letter will be recorded in the integrity file and some tracks of alleged violations of laws and regulations will be transferred to the audit for processing. Based on the results of the inspection, the various securities regulatory bureaus took administrative oversight measures, such as issuing warning letters and supervisory talks to 105 secondary audit institutions, 225 certified public accountants, 22 secondary appraisers, and 47 asset appraisers. , and recorded them in integrity files.
