Core Viewpoint - Jiangsu Securities Regulatory Bureau has imposed penalties on Yongtuo Accounting Firm for failing to perform due diligence, resulting in false records in audit reports and verification reports [1][2][3] Group 1: Penalties and Financial Impact - Yongtuo Accounting Firm is ordered to rectify its practices, with a total of 811 million yuan in business income confiscated and a fine of 57.17 million yuan imposed [1][3] - The firm is prohibited from engaging in securities service business due to its violations [3] Group 2: Specific Violations - In the audit of Hongda Xingye, Yongtuo failed to exercise due diligence, issuing unqualified audit reports despite knowing significant issues existed [1][2] - For Hengjiu Technology, the firm did not maintain professional skepticism and failed to properly assess financial fraud risks during the audit process [2] - In the audit of Kelin Environmental Protection, Yongtuo did not adequately understand internal controls related to revenue and failed to execute appropriate control tests, leading to significant deficiencies in substantive audit procedures [3]

Core Viewpoint - Jiangsu Securities Regulatory Commission has imposed penalties on Yongtuo Accounting Firm for failing to perform due diligence, resulting in false records in annual audit reports and fundraising verification reports, leading to a total fine of 57.17 million yuan and the prohibition of securities service business [1][5][7]. Group 1: Violations and Penalties - Yongtuo Accounting Firm was found to have serious deficiencies in its auditing practices for Hongda Xingye, Hengjiu Technology, and Kelin Environmental Protection, leading to the issuance of false audit reports [1][5][6]. - The total penalties include the confiscation of business income amounting to 8.11 million yuan and fines totaling 57.17 million yuan, with specific penalties for each company: 5.09 million yuan confiscated and 40.75 million yuan fine for Hongda Xingye; 1.32 million yuan confiscated and 7.92 million yuan fine for Hengjiu Technology; 1.70 million yuan confiscated and 8.49 million yuan fine for Kelin Environmental Protection [3][7]. Group 2: Specific Findings - In the audit of Hongda Xingye, Yongtuo failed to exercise due diligence, knowingly issuing unqualified audit reports despite significant issues and deficiencies in audit independence [1][6]. - For Hengjiu Technology, the audit work from 2019 to 2021 was marked by major flaws, including a lack of professional skepticism and failure to assess financial fraud risks appropriately [2][6]. - During the audit of Kelin Environmental Protection, Yongtuo did not adequately understand internal controls related to revenue and failed to execute proper control tests, leading to significant deficiencies in substantive audit procedures [3][7].