How does the auditing company related to Quoc Cuong Gia Lai and Saigon Dai Ninh do business?

DFK Vietnam Auditing Company Limited is continuously mentioned in the inspection and supervision activities of the State Securities Commission related to Quoc Cuong Gia Lai, SC5 and major cases under trial.

DFK Vietnam Auditing Company Limited is continuously mentioned in the inspection and supervision activities of the State Securities Commission related to Quoc Cuong Gia Lai, SC5 and major cases under trial.

Suspend the auditor who signed the audit report for Quoc Cuong Gia Lai

The State Securities Commission has just announced the audited 2023 financial report of Quoc Cuong Gia Lai Joint Stock Company (QCG).

Specifically, the State Securities Commission said that according to the results of the 2024 audit service quality inspection of this agency at DFK Vietnam Auditing Company Limited, the audit records showed that the auditor had not fully performed the audit procedures and had not collected sufficient appropriate audit evidence to give an audit opinion as required by auditing standards.

Therefore, the State Securities Commission will suspend the auditors from signing the audit report of Quoc Cuong Gia Lai's 2023 financial statements.

DFK Vietnam Auditing Co., Ltd. has audited financial statements for Quoc Cuong Gia Lai since 2020.

Not only Quoc Cuong Gia Lai, a similar notice was also sent to Construction Joint Stock Company No. 5 (SC5). The State Securities Commission will suspend the auditors who signed the 2023 audit report of SC5. SC5's financial statements were also audited by DFK Vietnam and the auditors have not fully performed the audit procedures.

Previously, on November 12, 2024, the State Securities Commission issued Decision No. 1228/QD-UBCK on suspending the status of an auditing company approved to audit public interest entities in the securities sector until December 31, 2024 for DFK Vietnam Auditing Company Limited due to audit quality not meeting the requirements as prescribed in Point c, Clause 1, Article 13 of Circular No. 183/2014/TT-BTC dated December 4, 2014.

Not only related to Quoc Cuong Gia Lai or SC5, DFK Vietnam has also just been named in the investigation conclusion of the case that occurred at Saigon Dai Ninh Tourism Investment Joint Stock Company (Saigon Dai Ninh Company) and related units.

According to the investigation conclusion, in March 2021, Mr. Pham Duc Thang, Deputy Director and Tran Mai Hai Dang, Auditor of DFK Auditing Company signed and issued an Independent Audit Report on the situation of charter capital contribution of shareholders as of December 31, 2020, determining the owner's capital contribution to be 2,000 billion VND for Saigon Dai Ninh Company.

However, the Investigation Agency determined that individuals at DFK Auditing Company only relied on photocopied documents, stamped documents, receipts, and stock ownership certificates; did not check or compare original documents and documents, and did not have supporting documents such as statements, cash books, etc. The Investigation Agency assessed that the signing and issuance of audit reports without sufficient evidence, not working with the Board of Directors, the Board of General Directors, and the legal representative, and not giving an exclusionary opinion were violations of the provisions of auditing standards.

Therefore, the Investigation Police Agency of the Ministry of Public Security recommends that the Ministry of Finance review and strictly handle violations during the audit process of DFK Auditing Company and related individuals.

How does DFK Vietnam do business?

According to the company website, since 2007, DFK Vietnam has been a member of the international auditing firm DFK International. DFK International is an international network of auditing and business consulting, including 219 member firms operating in 101 countries. Mr. Nguyen Luong Nhan is currently the General Director of DFK Vietnam.

DFK Vietnam's Transparency Report 2023 stated that, by the end of 2023, the company had 19 practicing auditors approved by the Ministry of Finance to audit public interest entities and 17 practicing auditors approved by the State Securities Commission to audit public interest entities in the securities sector in 2023.

DFK Vietnam's revenue in 2023 reached more than 43.7 billion VND, of which revenue from auditing and accounting services accounted for more than 43.4 billion VND. Most of the revenue was spent on regular salaries (25.5 billion VND). As a result, DFK Vietnam's after-tax profit in 2023 was only 1.4 billion VND. Previously, in 2022, the company made a profit of more than 2 billion VND.

Figures: DFK Vietnam's annual transparency report.

The list of DFK Vietnam's public interest clients is increasingly decreasing. In the transparency report, DFK Vietnam only reported that it had audited 2 public interest entities in 2023, namely Cong Thanh Cement Joint Stock Company and Chang Yih Ceramic Tile Joint Stock Company.

In 2022, the public interest entities audited included 6 companies, including: Chang Yih Ceramic Tiles JSC, Construction Investment JSC No. 5, LDG Investment JSC, Quoc Cuong - Gia Lai JSC, Duong Hieu Mineral Exploitation & Trading JSC and Vietnam Oil and Gas Power Consulting JSC.

Source: https://baodautu.vn/cong-ty-kiem-toan-lien-quan-den-quoc-cuong-gia-lai-sai-gon-dai-ninh-lam-an-the-nao-d230355.html