Reason for suspending auditor signing financial report of Quoc Cuong Gia Lai

The Securities Commission's Public Company Supervision Department said it will suspend auditors who signed the audit of the 2023 financial statements of Quoc Cuong Gia Lai Joint Stock Company.

Mr. Nguyen Quoc Cuong - General Director of QCG - Photo: CH

The Department of Public Company Supervision under the Securities Commission has just sent a document to Quoc Cuong Gia Lai Joint Stock Company (QCG) regarding the audited financial statements for 2023.

According to the results of the 2024 audit service quality inspection by the Securities Commission at DFK Vietnam Auditing Company Limited, the audit records show that the auditor has not fully performed the audit procedures.

The auditors auditing QCG's report have not yet obtained sufficient appropriate audit evidence to express an audit opinion as required by the auditing standards.

Therefore, the Securities Commission said it will suspend the auditors from signing the audit report of QCG's 2023 financial statements.

Following the above announcement from the Securities Commission, Mr. Nguyen Quoc Cuong - General Director of QCG, said that the Board of Directors will work with the auditing unit to ensure that the 2024 financial report meets the standards and conditions for auditing and is announced to shareholders as soon as possible.

According to QCG's audited financial report for 2023, Mr. Nguyen Anh Tuan - Deputy Director and Mr. Le Huy Binh - Auditor of DFK Vietnam, signed the audit report.

Also in the report, DFK Vietnam's auditors affirmed that QCG's 2023 consolidated financial statements reflected honestly and reasonably.

Meanwhile, in QCG's 2024 semi-annual financial report, DFK Vietnam's auditors gave their full acceptance opinion but with other issues related to the fact that QCG must return the entire amount received from Sunny Island Investment Joint Stock Company of nearly VND 2,883 billion, to fulfill the obligation for Ms. Truong My Lan according to the first instance judgment of the Ho Chi Minh City People's Court on April 11, 2024.

Regarding business performance, the 2023 financial report shows that QCG recorded revenue of VND 432 billion, a sharp decrease compared to VND 1,265 billion in 2022.

At the same time, after-tax profit was nearly 3.2 billion VND, only 1/10 of the result achieved last year.

In the first 9 months of this year, QCG reported net revenue of VND243 billion, down 12% compared to the first 9 months of last year. However, after-tax profit reached more than VND8.7 billion, while in the same period last year it lost VND3.4 billion.

At the end of September 2024, QCG recorded total assets of VND 9,337 billion, mostly in inventory with more than VND 6,900 billion.

On the other side of the balance sheet, QCG's liabilities decreased from more than VND 5,225 billion at the beginning of the year to VND 4,822 billion after 9 months.

Notably, among the payables detailed in the financial report, QCG has an additional loan of 30 billion VND from Mr. Nguyen Quoc Cuong - the company's general director.

Previously, Mr. Cuong sat in the "hot seat" of QCG right after Ms. Nguyen Thi Nhu Loan - Mr. Cuong's mother - was prosecuted.

Many auditors suspended

Before Quoc Cuong Gia Lai, a number of auditors auditing for other businesses such as VC2, Dong A Plastics... were also suspended.

Most recently, UHY auditors have also been suspended by the Securities Commission, including: Mr. Hoang Dinh Hai, Mr. Tran Hong Giang, Mr. Nguyen Minh Hung and Ms. Pham Thi Ngoc Tho.

Mr. Hai is the deputy director of this auditing company. The suspension period is according to the decision from the management agency, starting from September 20 to December 31, 2024.

The State Securities Commission's announcement did not specify the reason why the above auditors were suspended.

However, the suspension of a series of UHY auditors was mentioned by the State Securities Commission in a document sent to a number of listed enterprises that are UHY's clients. Thereby revealing the reason why these auditors were suspended.

Source: https://tuoitre.vn/ly-do-dinh-chi-kiem-toan-vien-ky-bao-cao-tai-chinh-quoc-cuong-gia-lai-20241119093130876.htm