The CICPA requires Zhongzhun Accounting Firm to make time-limited rectifications. The reporter learned from the Chinese Institute of Certified Public Accountants that the association recently found in its inspection of the 2010 annual report audit project of ZiXin Pharmaceutical that the certified public accountants involved did not maintain the necessary professional skepticism during the audit process, and there were improper actions in the planning and implementation of audit procedures, obtaining audit evidence, and forming audit conclusions. In particular, the auditing of related parties and their transactions violated the Chinese Certified Public Accountants' Auditing Standards and Professional Ethics Code.
In response, the CICPA stated that according to the "Punishment Measures for Violations of Professional Conduct by Members of the Chinese Institute of Certified Public Accountants," the CICPA Punishment Committee decided to criticize publicly Liu Kun and Zhang Zhongwei, the certified public accountants who signed off on the ZiXin Pharmaceutical audit project at Zhongzhun Accounting Firm. The CICPA also issued a "Rectification Notice" to Zhongzhun Accounting Firm, ordering it to strengthen the construction of its quality control system, enhance the management of branch offices by the main office, and carry out rectifications within a specified period.
Meanwhile, the reporter learned that recently, the CICPA held talks in Beijing with responsible persons from Zhongzhun and Zhongxi, two securities-qualified accounting firms, reminding them to conscientiously implement the rectification requirements proposed by the CICPA, effectively improve and strengthen the construction of the firm's quality control system, and ensure the quality of the 2011 annual report audit work from the source.
Relevant persons in charge of the CICPA expressed that the CICPA will increase its tracking of the implementation of rectification measures by punished firms, continuously increase the intensity of rectification reviews and professional assistance, and strive unceasingly to further improve the overall professional quality of the industry.
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