Core Viewpoint - The China Securities Regulatory Commission (CSRC) has imposed penalties on Da Xin Accounting Firm and two certified public accountants for failing to perform due diligence in the audit of Guanghui Logistics' 2022 annual financial statements, resulting in false records in the audit report [1][2][3]. Summary by Sections Audit Violations - Da Xin Accounting Firm provided audit services for Guanghui Logistics and issued a 2022 audit report that contained false records. The firm failed to maintain professional skepticism regarding obvious signs of fraud during the audit process [3][4]. - Guanghui Logistics recognized revenue from real estate projects prematurely, accounting for 57.65% of the reported revenue for the period, which raised significant concerns about the accuracy of the financial statements [4][5]. Lack of Due Diligence - The audit process exhibited a lack of due diligence, including failure to investigate inconsistencies in delivery documents and sales contracts, and not conducting on-site inspections of the properties [5][7]. - Internal control tests and substantive audit procedures were inadequately designed and executed, leading to ineffective verification of inventory existence and status [7][8]. Penalties Imposed - The CSRC ordered Da Xin Accounting Firm to correct its practices, confiscated audit income of 1,698,113.21 yuan, and imposed a fine of 3,396,226.42 yuan. The two accountants received warnings and fines of 400,000 yuan each [10][11]. - The total penalties amounted to approximately 5.894339 million yuan for Da Xin Accounting Firm and the two accountants [1][11].