Fangsheng Pharmaceutical(SH:603998) 梧桐树下V·2026-01-11 04:18Core Viewpoint - The article discusses the regulatory actions taken by the Hunan Securities Regulatory Bureau against the accounting firm and its personnel for deficiencies found in the audit of Hunan Fangsheng Pharmaceutical Co., Ltd.'s 2024 annual report [1][20]. Group 1: Risk Assessment Issues - The internal control test conclusion for fixed asset management was deemed ineffective, and there was a failure to understand the implications of this control deviation [1][8]. - There was a lack of identification and documentation of control deficiencies in the sales dispatch and goods outflow processes [1][8]. - The sampling for research and development cycle testing lacked supporting sample documentation [1][8]. Group 2: Substantive Procedures Issues - In inventory audit procedures, there was no execution of detailed testing for entrusted R&D costs, and the audit adjustments for R&D expenses lacked supporting documentation [2][10]. - The assessment of inventory impairment provisions was inaccurate and based on insufficient evidence [2][10]. - The audit of monetary funds did not include a two-way verification of bank statements and journals [3][11]. - For long-term assets, some equity investments showed signs of impairment but were not tested for impairment, and the basis for expected credit loss rates on receivables was insufficient [3][12]. - The company recognized fixed assets worth 9.9758 million yuan, but the related equipment had been operational for three years, and the audit did not obtain sufficient evidence to confirm the timing of asset capitalization [3][12]. Group 3: Monitoring and Other Audit Procedures - The audit did not address the reasons for certain raw material losses and failed to implement further audit procedures [4][13]. - The conclusions from monitoring construction projects contradicted audit adjustments, and the monitoring dates did not align with the balance sheet date [4][13]. - The audit of goodwill did not evaluate the competence and objectivity of the valuation agency and personnel hired by management [4][14]. - There was a lack of attention to anomalies in the dates of goods receipt compared to shipping dates, and the impact of sales return terms on revenue recognition was not reflected in the audit documentation [4][15]. Group 4: Quality Control Issues - There were no records of quality control reviews of internal control working papers by the affiliated firm [5][19].