Why were Saigon Dai Ninh and Quoc Cuong Gia Lai auditing companies suspended?

ANTD.VN - DFK Vietnam Auditing Company Limited, the unit known to be involved in the "Sai Gon Dai Ninh" case, has had its auditing firm status suspended.

The State Securities Commission (SSC) has just issued a decision to suspend 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.

Along with that, the management agency also decided to suspend the status of auditors approved to audit public interest entities in the securities sector until December 31, 2024 for auditors Nguyen Anh Tuan, Le Huy Binh and Nguyen Van Tan of the above auditing company.

DFK Vietnam Audit has just been suspended by the State Securities Commission.

Concurrently with this decision, the State Securities Commission also sent an official dispatch to enterprises whose financial statements have been audited by DFK Vietnam Audit. In particular, in the document sent to Quoc Cuong Gia Lai Joint Stock Company (QCG) and Construction Joint Stock Company No. 5 (SC5), 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 issue an audit opinion as required by auditing standards.

Therefore, the State Securities Commission will suspend auditors from signing audit reports on the 2023 financial statements of the above enterprises.

It is known that DFK Vietnam Auditing Company Limited has audited financial statements for Quoc Cuong Gia Lai since 2020. In early August, Quoc Cuong Gia Lai continued to sign a contract to audit financial statements for 2024 with DFK Vietnam.

Regarding the suspension of this auditing firm, Quoc Cuong Gia Lai said that the Board of Directors of the Company will work with the auditing unit for the Company's 2024 financial report to ensure that it meets the standards and conditions for auditing for public interest entities and will be announced as soon as possible.

DFK Vietnam Auditing Company Limited is also known as the auditing unit "named" in the conclusion of the investigation agency related to 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 vouchers, and did not have supporting documents such as statements, cash books, etc.

The investigation agency assessed that signing and issuing an audit report without sufficient evidence, not working with the Board of Directors, the General Director, 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.

DFK Vietnam Audit is a member of the international auditing firm DFK International - introduced as an international network of auditing and business consulting, including 219 member firms operating in 101 countries.

According to DFK Vietnam's report, 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 will reach more than 43.7 billion VND, with after-tax profit of 1.4 billion VND.

Some of the units are customers of DFK Vietnam such as: Cong Thanh Cement Joint Stock Company, Chang Yih Ceramic Tile Joint Stock Company, Construction Investment Joint Stock Company No. 5, LDG Investment Joint Stock Company, Quoc Cuong - Gia Lai Joint Stock Company, Duong Hieu Mineral Exploitation and Trading Joint Stock Company, Vietnam Oil and Gas Power Consulting Joint Stock Company...

Source: https://www.anninhthudo.vn/vi-sao-cong-ty-kiem-toan-sai-gon-dai-ninh-va-quoc-cuong-gia-lai-bi-dinh-chi-post596002.antd