Core Viewpoint - The Jiangsu Securities Regulatory Bureau has issued a lifetime ban on Yongtuo Accounting Firm from providing securities services, marking the first such penalty since the revision of the Securities Law in 2019, due to serious negligence in audits of three listed companies [2][7]. Group 1: Administrative Penalty - On December 13, the Jiangsu Securities Regulatory Bureau imposed a severe administrative penalty on Yongtuo Accounting Firm, resulting in a fine of 65.283 million yuan and a prohibition from engaging in securities services [2][6][7]. - The firm was involved in audits of Hongda Xingye, Hengjiu Technology, and Kelin Environmental Protection, where it exhibited significant negligence [7]. Group 2: Audit Failures - Yongtuo's audit team was found to have directly participated in fraudulent activities during the Hongda Xingye project, including fabricating audit adjustments and altering financial statements [3][9]. - In the Hengjiu Technology case, Yongtuo not only failed to perform due diligence but also facilitated financial fraud by introducing fraudulent business transactions [3][9]. - The firm issued audit reports containing false records for Kelin Environmental Protection despite multiple risk warnings from regulatory bodies [3][9]. Group 3: Industry Impact - The lifetime ban has created a tense atmosphere within the auditing industry, prompting auditors to reassess their ethical standards and companies to reevaluate their partnerships with audit firms [2][4][7]. - The incident highlights systemic issues within the auditing sector, where some firms compromise their independence to retain clients, leading to the issuance of unqualified audit reports despite known issues [4][10]. - Investor trust in intermediary institutions is slowly being rebuilt, with a growing scrutiny of audit reports [4][10].