The reason why 2 auditors at Garmex Saigon were suspended was revealed

(Dan Tri) - The State Securities Commission suspended the audit because the auditor had not fully performed the necessary procedures and had not collected enough appropriate audit evidence to give an opinion according to auditing standards.

Garmex Saigon Joint Stock Company (stock code: GMC) has just announced information about receiving notice from the State Securities Commission (SSC) regarding the 2024 audit report.

According to the State Securities Commission, the results of the 2025 audit service quality inspection at Southern Accounting and Auditing Financial Consulting Services Company Limited showed that the audit records of Garmex Saigon's 2024 financial statements did not meet professional requirements.

The auditors have not completed the necessary procedures and have not collected sufficient appropriate audit evidence to express an opinion in accordance with auditing standards. Therefore, the SSC decided to suspend the auditors who signed the audit report on GMC's 2024 Financial Statements.

Specifically, the two people who signed the GMC audit report include Mr. Do Khac Thanh - Deputy General Director of Southern Accounting and Auditing Financial Consulting Services Co., Ltd. and Ms. Duong Thi Quynh Hoa - Auditor. Mr. Thanh has Auditing Practice Registration Certificate No.: 0064-2023-142-1 and Ms. Hoa has Auditing Practice Registration Certificate No.: 0424-2023-142-1.

The State Securities Commission also requested Garmex Saigon to publish information about the incident on the State Securities Commission's Information Disclosure System, the Hanoi Stock Exchange and on the company's website.

Two auditors of Garmex Saigon have just been suspended by the State Securities Commission (Photo: DT).

According to the audited consolidated financial report for 2024, Garmex Saigon recorded revenue of only VND2.1 billion, down 75% compared to 2023. Business management expenses of VND45 billion caused the company to lose VND30 billion after tax. This is the third consecutive year of loss, after a loss of VND52 billion in 2023 and VND85 billion in 2022.

The auditors have expressed their opinion that Garmex Saigon's consolidated financial statements "fairly and fairly" reflect the financial situation as of December 31, 2024, as well as the business results and cash flows in accordance with current accounting regulations.

However, the conclusion of the State Securities Commission shows that the audit records do not meet the requirements for audit evidence according to the standards.

Garmex Saigon is a textile and garment enterprise established in 1976. Before 2020, the enterprise maintained a revenue of more than 1,500 billion VND and a team of more than 4,000 employees.

After the Covid pandemic, especially affected by Gilimex losing a major contract from Amazon Robotics LLC, the company's business situation plummeted, leading to a sharp decline in the size of its workforce. By the end of 2024, the staff was only 31 people, meaning thousands of workers had been cut.

With no more revenue from traditional sectors, Garmex recently attracted attention when it "lived off" Pickleball courts - a trendy sport in recent times.

Source: https://dantri.com.vn/kinh-doanh/lo-ly-do-2-kiem-toan-vien-tai-garmex-sai-gon-bi-dinh-chi-20251203144844820.htm