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 Wysłany: Pon 14:01, 25 Kwi 2011 Temat postu: Dongfang Electronics recognized the failure of the |
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Dongfang Electronics recognized the failure of the financial statements of the audit
Audit failure or audit staff did not follow the auditing standards issued the wrong result of the audit opinion. Identified as the audit failure at least meet two conditions: First, from the audit results, audit opinions issued by wrong; Secondly, from the audit perspective, did not follow the auditing standards. This should be a causal relationship between the two conditions, that is because there is no follow auditing standards, why they issued the wrong audit opinion. It should be noted that the audit work in accordance with auditing standards even though it may express an audit opinion wrong. This is the objectivity of the decision by the audit risk, that the audit risk is always there, so the possibility of audit opinions issued error always exists. In addition, auditing standards itself flawed, even according to the audit criteria, audit findings (ie, the audit opinion issued) may be wrong. In terms of the auditors, this result can not control. Therefore, the audit results should not take responsibility for the error, we determined that the auditor can not audit failed. If only the above two conditions fail to identify whether the audit will be very difficult. Because the auditing standards contained in the very broad, did not follow the appropriate auditing standards also include a number of aspects. Moreover, there did not follow the auditing standards to determine and audit opinion in the end is right or wrong is very subjective, determined to bring this to the actual difficulties. Therefore, it is necessary to refine the standard. This paper combined with the audit of financial statements Dongfang Electronics to talk about the identification of audit failure. Dongfang Electronics (000682) on 21 January 1997 at the Shenzhen Stock Exchange listed shares A 1030 public offering of shares, issue price of 7.88 yuan / share. Along the way, since the East line of electronic shares, 4 years, soaring more than 60 times total. Rapid expansion in equity, based on the results achieved for 3 consecutive years to double, once listed as China's best companies. 2001 年 7 months, Dongfang Electronics shares fell inexplicably, the same year in September, the official China Securities Regulatory Commission on the Orient Electronics criminal investigation. Since then, all the way down the share price Dongfang Electronics. In the same year in October, the company announced recognition 2002 年 4 months, the Commission provided a preliminary identification of Dongfang Electronics alleged false financial reporting, insider trading, for its audit of the accounting firm of Shandong Yantai dry poly (hereinafter referred to as the dry poly CPA) documents allegedly issued false. Dongfang Electronics will reach 1.039 billion yuan over the years, the after-tax stock market gains (through speculation in the secondary market shares of the Company) all included in Published in mid-2001, its subsequent reported, the company issued after the decision to adjust. Meanwhile, starting from April 30 Dongfang Electronics was 2003 年 1 month, Yantai Dongfang Electronics Intermediate People's Court found responsible persons in charge of providing false financial reports constitute the crime, were carried out its civil and criminal penalties. 2004 年 2 月 20 日, ST East Board of Directors announced that identified the original sale of shares in the company reflects the deduction of taxes other than income of 1.039 billion yuan shall be vested in the company of all, the Group Board of Directors made a resolution to exempt the company from the sale Equity income for the formation of the company's debt 1,003,100,000 yuan. Click At this point, East e-finance fraud case come to an end. Dongfang Electronic accounting fraud occurred in its 1997 annual listing of the disclosure period to 2001, so this just from 1997 to 2000 audit of the accounting statements for an analysis. I believe that the audit failures should be determined mainly consider the following aspects: 1, the audit does not meet the audit objectives. Independent audit, the audit has two main objectives,[link widoczny dla zalogowanych], there may be significant in the fraud and illegal acts of fraud Can be seen, if not a correct audit opinion issued, failed to reveal significant errors, fraud and illegal acts that does not meet the audit objectives. Does not meet the audit objective, the audit result of the failure, if there is the result of the audit work can not be considered a failure. Dongfang Electronics 1997-2000 audit as follows: ┌ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ─ ┐ │ │ 1997 │ 1998 年 年 年 │ 1999 │ 2000 年 │ ├ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ┤ │ │ │ Yantai City, Shandong Province, Yantai, Shandong, Yantai, Shandong, dry dry polymer poly │ │ Yantai dry poly │ │ Audit Institutions │ │ │ │ │ │ │ CPA accounting firms accounting firms │ │ │ CPA │ ├ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ─ ┤ │ │ unqualified audit opinion unqualified │ │ │ unqualified unqualified │ └ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ─ ┘ (Yantai, Shandong, together accounting firm that is the original dry Yantai, Shandong, accounting firm) visible, dry poly accounting firm annually from 1997 to 2000 issued a non- reservations (2001 Annual Report together accounting firms still dry, issued a non-standard unqualified opinion), and no significant financial statement errors and fraud. In fact, since 1997 listed, Dongfang Electronics began frenzied speculation capital secondary market. 5 years, e-Eastern part of the company has sold individual use of IPO funds and invest the cash in the company 680 million yuan of funds used to trade shares of the company, for a total amount of illegal trading as high as 51 million yuan. At the same time, they used stock proceeds to gloss over the accounting statements. 5 years, has the stocks of 1.595 billion yuan in income (after verification of the SFC was 1.039 billion yuan after tax income) by issuing false sales invoices, sales contracts and other means of forgery, included Such a major accounting fraud and illegal acts actually dry polymer did not find accounting firm, has issued an unqualified opinion. On the amount involved and the nature of the accounting firm should be dried together qualifications issued audit report or even deny the comments. Therefore, the audit results, the Eastern Electronic 1997-2000 audit was unsuccessful. 2, the auditors did not perform auditing duties, should bear legal responsibility. Audit responsibilities include the professional responsibility of the audit (the audit function) and liabilities of two parts. First, the audit function is closely related to the audit objectives, audit objective determines the audit responsibilities, the audit of the professional liability is that . Around the audit objectives and audit, there are two main aspects: first, the auditors must be audited financial statements of whether the financial position, operating results and cash flow to make the right evaluation; Second, auditors must disclose that have a significant impact on the financial statements misstatements, omissions and fraud. Otherwise, the audit may be considered a failure. Secondly, if they are identified as the audit failure, auditors typically have to bear legal responsibility. For lack of reasonable care and due to the damage caused to others, the auditor should bear the responsibility of ordinary negligence or gross negligence; to deceive or harm another person for the purpose of intentional misconduct, fraud will have to bear the responsibility. From the east view electronic audit of the financial statements of the dry poly CPAs accounting firm is neither a reflection on the financial statements to make proper evaluation of the situation, nor reveal material misstatement, that they did not quite better fulfill the audit functions. In view of the impact of very important issues involved, the implementation of Dongfang Electronics CPA audit should take at least negligence.
3, in the audit process, audit methodology used incorrectly or not implemented the necessary audit procedures. Audit approach in the use of certain evidence obtained on the basis of the audit the audit opinion can be expressed, the audit failure is often not appropriate with the audit methods used together. Audit methods generally include inspection, monitoring disk, observation, inquiries and circularization, computing, analytical review of several such. Inappropriate use of audit methodology audited units will leave room for fraud. For some subjects, the audit, some audit procedures are necessary, for example, circularization of accounts receivable, inventory monitoring disk and so on. Lack of the necessary audit procedures, a number of omissions of material misstatement, accounting fraud and other acts to be difficult to find. Dongfang Electronics mainly by Sike customers seals, paste methods such as forged copy sales contracts, false sales invoices to be washed into the main business stock gains income. Traditionally, the audit should require companies to provide all the relevant sales contract with the original period, and then taking part confirmation. For major issues, if the write back is bad, or accounting firms and further confirmed by other means, or issue a qualified opinion or views of the audit report can not be expressed. Accounting firm and dry together, said in an interview that they had chosen some of our customers for circularization (nearly 200), sent a letter to the proportion of 70% or more, but the write back is not very good (about 100 or so). Whether to implement the CPA and the next alternative audit procedures we can not know, but at least in the dry poly audit report issued by accounting firm is not any indication in this regard. In fact, the dry polymer specific circularization accounting firms are also highly irregular procedures. Independent auditing standards in accordance with relevant provisions, the auditors should be made in person to the bank and third-party letter of inquiry to verify the financial situation of the audited entity authenticity. But in operation, the persons concerned are responsible for auditing the survey conducted in person confused, work permits, and other inquiries to be completed by the Dongfang Electronics, on the part of the reply letter and the reply letter is a non-standard seal copy, fax, etc. abnormality has not carefully examined. This makes the circularization of the important audit procedures and not a mere formality to play its due role as the final audit opinion issued error most important reason. In addition, the implementation of three-tier review process is not seriously wrong audit opinion is published in one of the important reasons. In a meeting of the audit process, the face covered with piles of fake seals and a fake contract, the financial statements were flawed, the firm signed up for the annual audit review of accounting is not serious, he again issued a reservations, 4, the auditors did not maintain due professional care. China's In other words, auditors should be skeptical practice, did not miss any significant impact may result in doubt. Main business income of listed companies is a measure of an important indicator of business conditions, but the dry poly Shandong auditor public accounting firm audit the course, he was not maintained due professional care. Dongfang Electronics calendar main business revenue and profit margin of main business as follows: ┌ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┬ ─ ─ ─ ─ ─ ┐ │ │ 1997 │ 1998 年 年 年 │ 1999 │ 2000 年 │ ├ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┤ │ │ │ │ │ │ │ Main Business Revenue (billion) │ 2.37 │ 4.50 │ 8.56 │ 13.75 │ ├ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┼ ─ ─ ─ ─ ─ ┤ │ main business gross profit margin (%) │ 47.3 │ 47.3 │ 52.9 │ 47.1 │ └ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ┴ ─ ─ ─ ─ ─ ┘ First of all, the Oriental Electronics main business income, power automation system sales accounted for the bulk of 94.5% in 2000. and according to the number of electronic bulletin board, only one of its 3-year (1998-2000) of the main income (up to 2.7 billion) accounted for nearly 60% of the total market. At present the field of automation of the development of rural power companies have up to 200 more than, the competition is fierce, the East has such a market share of electronics is never possible. In addition, the high profit margins Dongfang Electronics also does not make sense logically. From the book point of view, , and in the lower margin areas of automation of the rural power grid, a figure less than 10%. Moreover, Dongfang Electronics orders cheap little is known in the industry. For example, Beijing Orient Electronics Quartet and the municipal power dispatch in the fight for market in several encounters in the Beijing Orient Electronics Quartet almost 60% of the price quoted took orders. Beijing Quartet transformation of the municipal area of network automation tender offer generally last only about 10% profit margins, and Beijing Orient Electronics Quartet offer more than 40% is lower, high-profit come from? The face of these questions, together accounting firm dry auditors actually did 5, the loss of audit independence. CPA independence is the soul of the implementation of audit services, independence, including de facto independence and formal independence. Certified Public Accountant and if there exists between the economic interests of clients, self-evaluation, correlation, or external pressure may damage the independence of the factors likely to affect the objective and fair position, difficult to fully work by auditing standards. Case of a series of audit failures, almost all of the audit firm failure and related the existence of various economic interests of customers say that this is the judge failed to consider the audit is an important factor. Shandong dry poly accounting firm for 5 years to provide an unqualified opinion on the East electronic audit report and has received 2.04 million yuan of the audit costs, both close economic interests can not help but gather the dry position of accounting firms to audit questioned. Above analysis, we can assume, Yantai, Shandong dry poly CPA 1997-2000 Orient Electronics audit the financial statements of the audit failure.
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