International Futures was warned for violating the "Guidelines on the Content and Format of Annual Reports of Futures Companies" and the relevant accounting firms were issued a warning letter
2024-08-07
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China.com Finance News, August 7th. Yesterday, the Beijing Securities Regulatory Bureau announced the relevant regulatory measures and decisions, showing that after investigation, China International Futures Co., Ltd. (hereinafter referred to as International Futures) had the following problems: First, it failed to submit the 2023 annual report, annual risk supervision report and other materials within the prescribed time limit, which did not comply with Article 10 of the "Content and Format Standards for Annual Reports of Futures Companies" (CSRC Announcement [2020] No. 20), and Article 13 of the "Guidelines for the Preparation and Submission of Risk Supervision Reports of Futures Companies" (CSRC Announcement [2022] No. 43), and violated the first paragraph of Article 99 of the "Regulations on the Supervision and Administration of Futures Companies" (CSRC Order No. 155). Second, the shareholders' meeting made a resolution to hire an accounting firm later than the actual start of the 2023 annual report audit work, and there were defects in corporate governance, which violated Article 40 of the "Regulations on the Supervision and Administration of Futures Companies" (CSRC Order No. 155).
According to Article 109 of the "Regulations on Supervision and Administration of Futures Companies" (CSRC Order No. 155), the Beijing Securities Regulatory Bureau has decided to take regulatory measures against International Futures by issuing a warning letter. International Futures shall submit a written rectification report to the Beijing Securities Regulatory Bureau within 30 days from the date of receipt of this decision.
At the same time, in accordance with the relevant provisions of the Securities Law of the People's Republic of China, the Beijing Securities Regulatory Bureau inspected the 2023 financial statement audit project of International Futures performed by Beijing Dongshen Accounting Firm (Special General Partnership) (hereinafter referred to as Dongshen Accounting Firm) and Jia Fan and Song Dongya (Dongshenhui [2024] No. A07-087). Upon investigation, Dongshen Accounting Firm and Jia Fan and Song Dongya had problems in their audit practice, such as inadequate implementation of risk assessment procedures, inadequate implementation of communication procedures with the previous registered accountants, inadequate implementation of planned audit work, inadequate implementation of goodwill impairment testing procedures, inadequate implementation of other asset impairment testing procedures, inadequate implementation of other receivables and interest receivable audit procedures, and inadequate implementation of confirmation procedures.
The above-mentioned actions of Dongshen Accounting Firm, Jia Fan and Song Dongya violated Article 100 of the "Regulations on Supervision and Administration of Futures Companies" (CSRC Order No. 155). In accordance with Article 111 of the "Regulations on Supervision and Administration of Futures Companies", the Beijing Securities Regulatory Bureau decided to take administrative supervision measures against Dongshen Accounting Firm, Jia Fan and Song Dongya by issuing a warning letter, and record it in the integrity file of the securities and futures market. Dongshen Accounting Firm, Jia Fan and Song Dongya should pay attention to the risks of practice, take timely measures to strengthen quality management, ensure the quality of practice, and submit a written report to the Beijing Securities Regulatory Bureau within 30 days from the date of receipt of this decision.
