A Beijing Guofu accounting firm (Hebei branch) and two of its accountants have been fined by the government due to the issuance of a "non-compliant" report. The report had three main deficiencies:
1. Signature Issues: The report was required to be signed and stamped by two qualified CPAs but failed to meet this requirement, much like a contract with only one witness, which casts doubt on its legal validity.
2. Lack of Registration: The report was not registered on the official "Unified Regulatory Platform for CPAs," nor did it obtain a unique QR code (for code reporting). This means the report cannot be found in the official system and is considered "unregistered," thus cannot be effectively monitored or verified.
3. Poor Execution: During the audit, data was not reviewed carefully, with issues identified but not reported, indicating a lack of diligence and accountability in their work.
Penalty Outcome: - For the accounting firm: A warning and the confiscation of illegal earnings amounting to 8,776.41 yuan (which effectively means the firm lost the revenue from this job). - For the two signing CPAs (Yang Yuqiao and Jiao Wenying): Both received personal warnings.
The penalties were imposed due to violations of numerous laws and regulations governing the conduct of CPAs and accounting firms. The underlying principle is that their report was non-compliant, untrustworthy, and failed to uphold the auditing responsibilities.
In summary, this case exemplifies the consequences of non-compliant work and substandard quality leading to government scrutiny and penalties. Both companies and individuals engaged in industries demanding high credibility and responsibility must adhere strictly to regulations, or face legal repercussions.
Administrative Penalty Notice from the Hebei Provincial Finance Department - Party: Beijing Guofu Accounting Firm (Special General Partnership) Hebei Branch - Address: 701, Block A, Xinke International Plaza, No. 158, Huai'an East Road, Yuhua District, Shijiazhuang City, Hebei Province.
Upon investigation, the report titled "Special Report for the Third Quarter Tourism Incentives Application Project in Qinhuangdao City" (Guofu Ji Zi [2024] No. 13022039) issued by your institution revealed deficiencies in report form, inadequate execution of audit procedures, insufficient audit evidence, and check defects, which primarily included: - Not being signed and stamped by two accountants with the necessary qualifications, thus failing to meet the legal requirements for audit reports. - Not being recorded on the unified regulatory platform for CPAs. - Oversight in data checking during the audit process and failing to promptly identify and address issues.
These actions violated several legal statutes, including Article 20(3) and Article 31 of the CPA Law of the People's Republic of China, Article 60(1) of the Measures for the Administration of the Practice License and Regulation of Accounting Firms, relevant notices from the Ministry of Finance, and basic standards and ethical codes for CPAs.
The evidence of these violations is substantiated by work papers and exchange opinions from the financial checks. According to legal procedures, the department notified you of the intended administrative penalty, during which your institution did not contest or explain within the stipulated time frame.
Based on Article 39(1) of the CPA Law, Article 67(1) of the Measures for the Administration of the Practice License, and Article 3 of the Hebei Provincial Finance System’s Administrative Penalty Discretion Guidelines, it was decided to issue a warning and confiscate the illegal earnings of 8,776.41 yuan (RMB Eight Thousand Seven Hundred Seventy-Six Yuan and Forty-One Fen) as an administrative penalty.
Your institution is required to pay the fine within 15 days upon receiving this decision to the Hebei Province Non-Tax Revenue Financial Special Account (Payee: Hebei Provincial Finance Department; Bank: ICBC Shijiazhuang Branch; Account: 0402020509249040940).
Permit Number: 00000009.
If dissatisfied with this decision, you may apply for an administrative reconsideration to the Hebei Provincial Government within 15 days, or file an administrative lawsuit to the Qiaoxi District People's Court of Shijiazhuang City within the same timeframe.
Contact Unit: Hebei Provincial Finance Department Supervision Evaluation Department Contact Number: 0311-66650861 Contact Address: No. 48, South Zhonghua Street, Qiaoxi District, Shijiazhuang City
Hebei Provincial Finance Department, September 28, 2025.
Administrative Penalty Decision from Hebei Provincial Finance Department for Individuals: - Party: Yang Yuqiao - Address: 701, Block A, Xinke International Plaza, No. 158, Huai'an East Road, Yuhua District, Shijiazhuang City. Upon investigation, the report titled "Special Report for the Third Quarter Tourism Incentives Application Project in Qinhuangdao City" (Guofu Ji Zi [2024] No. 13022039) issued by your institution revealed issues similar to those stated above.
As a CPA involved in this report, you bear audit responsibility for the aforementioned issues.
These violations were confirmed by related evidence including finance inspection work papers.
The regulatory procedures regarding penalties were duly followed, and you were informed about your right to respond to the proposed penalties. You failed to present a defense within the legal timeframe.
Accordingly, based on Article 39(2) of the CPA Law, Article 70(1) of the Measures for the Administration of the Practice License, and Article 3 of the Hebei Provincial Finance System’s Administrative Penalty Discretion Guidelines, the department decided to impose an administrative penalty in the form of a warning.
If you do not agree with this penalty, you may apply for administrative reconsideration to the Hebei Provincial Government or file a lawsuit as outlined above.
Contact Unit: Hebei Provincial Finance Department Supervision Evaluation Department Contact Number: 0311-66650861 Contact Address: No. 48, South Zhonghua Street, Qiaoxi District, Shijiazhuang City
Hebei Provincial Finance Department, September 28, 2025.
Administrative Penalty Decision from Hebei Provincial Finance Department for Individuals: - Party: Jiao Wenying - Address: 701, Block A, Xinke International Plaza, No. 158, Huai'an East Road, Yuhua District, Shijiazhuang City. The findings regarding your responsibilities and compliance issues echo those previously mentioned.
If dissatisfied with the penalty, you have similar rights for administrative review or legal action.
Contact Unit: Hebei Provincial Finance Department Supervision Evaluation Department Contact Number: 0311-66650861 Contact Address: No. 48, South Zhonghua Street, Qiaoxi District, Shijiazhuang City
Hebei Provincial Finance Department, September 28, 2025.