The situation of listed enterprises having discrepancies in data in their pre-audit and post-audit financial statements continues to occur. For example, FIT Group Corporation (stock code FIT) has just announced its semi-annual audit report for 2023 conducted by A&C Auditing and Consulting LLC with the parent company's after-tax profit evaporating to VND7 billion, down 97% compared to the profit of VND225.5 billion in the self-prepared report.
The biggest change was financial revenue, which decreased by 71% to VND94.4 billion compared to the profit of VND323.3 billion in the self-prepared report. According to FIT's explanation, the reason for the sharp decrease in profit after the audit was due to the adjustment of business consolidation entries in the first half of the year. The biggest impact was the cancellation of consolidation entries to re-evaluate the investment in the associated company, Cap Padaran Mui Dinh Joint Stock Company, which caused the profit to decrease by nearly VND225 billion. In addition, the auditor canceled the asset value allocation entries, along with the consolidation entries related to the elimination of internal transactions...
FIT profit drops sharply due to investment in Cap Padaran Mui Dinh project
Another unit, Dien Quang Group Joint Stock Company (DQC), also saw a sharp decrease in after-tax profit in its audited financial report. DQC's consolidated profit dropped from VND3.9 billion in its self-prepared report to nearly VND1.73 billion. The company said the reason for this difference was that its subsidiaries adjusted their audited figures, leading to changes in their consolidated business results.
Similarly, the audited consolidated financial report of Southern Logistics Corporation (STG) also showed that after-tax profit decreased by VND26.3 billion, down to VND99 billion, while the self-prepared report showed a profit of more than VND125.3 billion. According to the explanation, the audited profit decreased by 21% due to the adjustment of the difference due to the revaluation of assets at the time the company acquired shares of Vietranstimex Multimodal Transport Company. This adjustment increased the group's asset liquidation costs by about VND29 billion, corresponding to the decrease in profit.
Many businesses' profits evaporate after audit
More serious is Hoa Binh Construction Group Corporation (HBC) with the 2023 semi-annual audit report conducted by Ernst & Young Vietnam Co., Ltd. showing a loss after tax of 73 billion VND while the previous self-prepared report still showed a profit of 101 billion VND. The main reason is that the audited report reduced financial revenue, increased business management costs and a sharp decrease in other profit items... For example, the increase in business management costs comes from the provision for bad debt of nearly 421 billion VND while the self-prepared report only showed 325 billion VND. Or HBC previously recorded other profits of 660 billion VND from the sale of fixed assets and materials, but the audited report only recorded more than 8 billion VND...
Source: https://thanhnien.vn/nhieu-doanh-nghiep-boc-hoi-het-loi-nhuan-sau-bao-cao-kiem-toan-185230831101835251.htm
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