The Chongqing Bureau of the China Securities Regulatory Commission has imposed a penalty on Beijing Xinghua Certified Public Accountants for failing to perform its duties diligently during the audit of Tian Sheng Pharmaceutical's 2017 annual report. Investigations found that Tian Sheng Pharmaceutical's 2017 annual report overstated total profit by approximately 92.2 million yuan, accounting for 30.21 percent of the disclosed total profit for the period, while Xinghua issued a standard unqualified audit report. The Chongqing Bureau ordered Xinghua to rectify the issue, confiscated business income of about 1.18 million yuan, and imposed a fine of approximately 2.36 million yuan, bringing the total penalty to around 3.54 million yuan. The signing certified public accountants Ye Min and Li Jie were each given a warning and fined 50,000 yuan.
Tiansheng Pharmaceutical Group Co LtdCSRC penalty on auditor for overstated 2017 profit highlights accounting fraud at Tiansheng Pharmaceutical.