Announcement of Accounting Information Quality Inspection Announcement No. 42

According to the "Memorandum of Cross -border Account Audit Law Enforcement Cooperation of the Ministry of Finance of the People's Republic of China and the Malaysian Securities Supervision Committee" (hereinafter referred to as the "Memorandum of China Malaysia") and Malaysia's co -inspection requests. With the strong support of the Ministry of Public Security, the Ministry of Finance's Lamura of Malaysia listed companies Group Co., Ltd. (according to the request letter of the Ma Fang Association, the company name is Lambo Group Berhad, hereinafter referred to as Lamborgh The Shandong Branch (hereinafter referred to as the ZTE Caiguan Huadian Branch) of the accounting firm (specially common partnership) shall be supervised and inspected, and is held accountable in accordance with the law. The relevant situation is announced as follows:

1. Related background

On August 20, 2018, under the witness of the Premier Li Keqiang of the State Council and Mahathir, then Malaysia, Malaysia, the Minister of Finance Liu Kun and the Malaysian Securities Supervision Committee, the chairman Lan Gito Agit Singh signed in Beijing The "Memorandum of China and Malaysia" strengthens the cooperation of accounting audit law enforcement in accordance with the principles of respect for sovereignty, equality and mutual benefit, and mutual dependence. In August 2019, Lan Gito Agit Singh visited the Ministry of Finance and transferred clues about the suspected violations of laws and regulations on the suspected violations of laws and accounting firms in Fujian, and asked the Ministry of Finance to assist in the verification.

According to the relevant provisions of the People's Republic of China Accounting Law and the People's Republic of China Registration Accountants, the Ministry of Finance organized the Fujian Provincial Department ZTE Caiguanghua Shandong Branch issued the 2018 audit report for Fujian Essen. After investigation, the 2016-2018 financial reports in Fujian were seriously fraudulent and suspected of crime; the audit procedures for ZTE Caiguang Huaxian Shandong Branch were seriously lacking, and it was responsible for the audit of the 2018 financial statements of Enson Sorus in Fujian.

Second, Fujian Essenzo seriously fraud and suspected crime

According to the public disclosure of Malaysia's capital market, the operating income of Essen Sisuo, Fujian in 2016-2018, was 27.01 million yuan, 133.4 million yuan, and 151.74 million yuan, and net profit was 19.09 million yuan, 30.35 million yuan, and 30.91 million yuan. At the end of the year, bank deposits were 130 million yuan and 50 million yuan holding wealth management products; 99%of Lamborghin Group's revenue in 2018 comes from Essenzo, Fujian.

The inspection found that Essen Sisuo, Fujian continued to lose money from 2016-2018. The employees have never exceeded 5 people. The annual operating income of the year has never exceeded 60,000 yuan, and the total profit is -30,100 yuan, -46,600 yuan, and -86,200 yuan, respectively. At the end of 2018, the actual bank deposit was less than 50,000 yuan and did not hold any wealth management products. After judicial appraisal, Fujian Essen Sorus was in charge of the Malaysia's accounting firm in charge of the Audit of Lamborgha Group (according to the request letter of the Malaysian Association, and the name of the firm named Morison Anuarul Azizan Chew, hereinafter referred to as the Malaysian Fair) 2016 and 2017 The audit report, as well as certification documents such as the 2018 bank inquiry letter, bank statement, and purchase and sales contract provided by the Shandong Branch of ZTE, all faked.

After verification by the public security organs, Ding Mouya, the actual controller of Fujian Essen, and Lin Mouyu, the head of the financial statement, provided falsely to ZTE Caiguanghua Shandong Branch during the 2018 financial statements audit. The materials required by the bank statement, bank inquiry letter, legal person's financial management service agreement, corporate inquiry letter and other audit materials; ZTE Caiguang Huaran Shandong divided the above materials, so the above materials were issued an audit report. The behavior of Ding Mouya and Lin Mouyu was suspected of forgery of the company, enterprises, institutions, and people's group seals. It has been taken by relevant departments to take measures to take on bail pending trials.

3. ZTE Caiguan Huaxiang Shandong Branch has a major audit responsibility for the audit of the 2018 financial statements of Fujian

ZTE Caiguanghua Shandong Branch signed a contract with Fujian Essen Sorus and Malaysia Office, agreed that it was part of the component of the Malaysian firm to audit the 2018 financial statements of Essen Sorus in Fujian. According to the "Reporting Opinions between the Office" issued by the ZTE Caiguan Huaxian Shandong Branch, the audit believes that the financial information of the 2018 special purpose of Essen Sesuo in Fujian has been compiled in accordance with the provisions of all major aspects.

The inspection found that the audit draft of ZTE Caiguang Hua Shandong Branch recorded 4 people to perform on -site audit, and actually only commissioned only one non -employee to carry out on -site work. The inquiry letter to the bank was intercepted and transferred by the enterprise, and the control of the letter of the letter was lost. The reserved points of the company that needed a bank inspection of the bank did not keep the seal of the seal. Certificate; the obtained bank statement is not directly obtained from the bank, but provided by the enterprise, which has caused failure to find that the deposit account of the enterprise bank is inconsistent; for important subjects such as income and costs, only some framework procurement contracts and sales contracts are obtained. No sufficient and appropriate audit evidence was obtained, and the relevant information department forged was not found; the audit project was not included in the business system of the ZTE Caiguan Hua Federation for unified management, and the relevant audit report was responsible for the ZTE Caiguan Huaxian Shandong Branch without internal review. People issued.

The above facts show that ZTE Wenguanghua Shandong Branch has not maintained his due doubts, the audit procedures are seriously lacking, no sufficient and appropriate audit evidence is obtained.Audit opinions have a major audit responsibility.In accordance with Article 39 of the Certified Accountants Law of the People's Republic of China, the Ministry of Finance gives a warning of ZTE Caiguanghua Accounting Firm (Special General Partnership), which confiscates 60,000 yuan in illegal income, and a fine of 300,000 yuanSigning the administrative penalty of the registered accountant Meng Xiang revoked the registered accountant certificate.According to the "Memorandum of Malaysia and Malaysia", the Ministry of Finance will notify the above situation to the Malaysian Securities Supervision Committee.

Department of Finance

July 1, 2022

(Source: Supervision and Evaluation Bureau of the Ministry of Finance)

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