Nearly two years after the audit firm Zhongzhong Pearl River was placed under investigation in April 2019 for allegedly cooperating with Kangmei Pharmaceutical Co., Ltd. (600518.SH, now ST Kangmei) for financial fraud, the accountant in Guangdong province has not escaped punishment.
Zhengzhong Zhujiang has a long history with Kangmei. Since 2001, Zhengzhong Zhujiang has audited the financial statements of Kangmei Pharmaceutical for 18 consecutive years. After financial fraud was exposed in 2019, Zhengzhong Zhujiang was replaced by Lixin in November of that year.
On the evening of March 19, the CSRC published on its official website the punishment decision for Zhongzhong Pearl River and related audit project personnel. The Securities Regulatory Commission verified that Pearl River in the middle of the existence of “five crimes”. After the hearing and argument, the CSRC, in accordance with Article 223 of the Securities Law of 2005, imposed a total fine of 57 million yuan on Zhongzhong Pearl River for “not one penalty of three”; At the same time, Yang Wenwei, Zhang Jingli and Su Chuangsheng were warned and fined 100,000 yuan respectively. Liu was given a warning and fined 30,000 yuan.