(Beijing Comprehensive News) Deloitte, which is dissatisfied with the four major international accounting firms, has provided audit services provided by China Huarong Asset Management "serious audit defects" to China Huarong Asset Management Company.200 million yuan (about 39 million yuan) a heavy penalty, and its Beijing branch was also suspended for three months.

Bloomberg said the fine was more than 25 times the total amount of fines issued by the Chinese Ministry of Finance during the inspection period last year.

The Chinese Ministry of Finance announced on Friday (March 17) on the official website that since 2021, the quality of accounting information of China Huarong and its audit institution Deqin Huayong Accountants will be conducted inspection.Huarong was one of the four state -owned financial asset management companies founded in the 1990s.

Announcement said that after the establishment of a special group of the Ministry of Finance of China, China Huarong and Deloitte conducted on -site inspections, extensive investigations and evidence collection, and organized hearing.Disclosure and other issues of accounting information.Deloittes did not maintain occupational doubts during the provision of audit services for China Huarong, did not effectively implement the necessary audit procedures, and had serious audit defects.

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Announcement also said that Deloitte did not penetrate the real situation of the underlying assets of China Huarong audit, ignored the compliance of the approval of major investment matters in China, and did not issue an audit opinion on the recognized China Huarong abnormal transactions, and did not obtain it.Full and appropriate audit evidence.

The Ministry of Finance of China issued a fine on China Huarong and Deloitte. China Huarong and seven subsidiaries were fined 100,000 yuan (RMB, the same below), and Deloitte received a fine of 21.9 million yuan.

China Huarong issued a statement on Friday night, responding that they sincerely accept the decision of the Ministry of Finance's penalty, and will continue to strengthen internal control in accordance with the law and optimize the comprehensive risk management system.Essence

Unfortunately failed to reach the audit standard Deloitte: Respect the decision to accept the punishment

The period of being investigated by China Huarong was the time when the former chairman Lai Xiaomin was served. He since September 2012 as the chairman of China Huarong, he was investigated in April 2018.Lai Xiaomin was killed by the court in January 2021 for more than 1.7 billion yuan.China Huarong failed to announce the performance of 2020 on time. Later, the data showed that the company's loss was as high as 102.9 billion yuan.After obtaining a $ 6.6 billion (about S $ 8.9 billion) led by the Chinese government, China Huarong resumed trading in the Hong Kong Stock Exchange in January last year.

In response to the punishment of the Chinese Ministry of Finance, Deloitte also issued a statement on Friday that they respect and accept the penalties of the Ministry of Finance, and in the inspection of the Ministry of Finance, they believe that their audit work fails to fully meet the requirements of the audit standards.Pity.

Deloitte emphasized that the inspection work of the Ministry of Finance of China proves that Deloitte Huayong, Beijing Branch and their registered accountants have no dishonest behavior during the audit process, and said that they did not receive it from China Huarong to receive it from China Huarong.Any information preparing to reinvigorate the relevant financial statements does not need to be corrected.

The above -mentioned ruling coincides with the Chinese government's urging state -owned enterprises to gradually suspend the four major international accounting firms for audit work.Bloomberg quoted people familiar with the matter in February that the Chinese Ministry of Finance and other departments urged some state -owned enterprises in January to end the contract with the four major accounting firms PwC, Ernst & Young, KPMV and Deloitte.This move in China is to seek the influence of global audit companies related to the United States to ensure the security of national data and support the local accounting industry in China.

Data from the Ministry of Finance of China show that the total income of the four major accounting firms in China in 2021 reached 20.6 billion yuan, of which Deloitte was about 4.2 billion yuan.