Red phase INC.(SZ:300427) 梧桐树下V·2026-01-17 11:55Core Viewpoint - The article discusses the disciplinary actions taken against two accounting firms, Zhicheng and Rongcheng, for their involvement in the audit of Hongxiang Co., Ltd., highlighting the existence of false records in financial statements from 2017 to 2021 and the lack of due diligence in their auditing processes [1][2][19]. Group 1: Disciplinary Actions - Zhicheng Accounting Firm and its auditors Zhang Lingwen and Wu Baocai received a reprimand for issuing false audit reports for Hongxiang's 2017 and 2018 financial statements [6][17]. - Rongcheng Accounting Firm and its auditors Lin Yanlin, Zhou Qiyu, and Wu Lelin were reprimanded for false audit reports for Hongxiang's 2019 to 2021 financial statements [19][37]. Group 2: Audit Violations by Zhicheng - Zhicheng failed to exercise due diligence during the audit of Hongxiang's financial statements, leading to false records in the 2017 and 2018 reports [7][10]. - Specific audit procedures were inadequately executed, including insufficient verification of sales revenue from related parties and lack of professional skepticism regarding significant transactions [8][11][17]. Group 3: Audit Violations by Rongcheng - Rongcheng did not properly assess risks or execute control tests during the audits of Hongxiang's financial statements from 2019 to 2021, resulting in unverified revenue recognition [20][30]. - The firm failed to maintain professional skepticism regarding significant transactions and did not adequately investigate discrepancies in financial records [22][24][32].