115 The Audit Of Annual Reports Of Listed Companies Is Not Qualified &Nbsp; 31 Companies Fail To Qualify For Financing.

More than 2000 released the 2010 annual report.

31 companies are out of financing.

Wind statistics show that 81 listed companies have issued an audit opinion with "unqualified opinions with emphasis on paragraphs". 23 listed companies have been issued a "reserved opinion" audit opinion, and 8 companies have issued an audit opinion which can not express their opinions.

However, no listed company was issued "negative opinions".

According to the Shenzhen Stock Exchange (Shenzhen Stock Exchange), there are four kinds of "non-standard opinions", namely, the unqualified audit reports with emphatic paragraphs, audit reports with reserved opinions, audit reports of negative opinions and audit reports that can not be expressed.

According to the Shenzhen Stock Exchange, the first report means that accountants think there are flaws in the reports, and the second one is that there are errors in the reports, and that there are third or fourth kinds of statements.

If an accountant issues a "non-standard opinion", investors should be cautious when choosing stocks.

In particular, the latter three of the above four "non standard opinions" should be cautious about such a listed company.

Because unqualified statements often imply great risks for listed companies.

Statistics show that all the "unable to express opinions" were issued by *ST company.

Among the 23 companies that have issued "reservations", 12 are ST companies, the rest include [6.80 1.64% shares of lotus group], lotus flower monosodium glutamate [6.08 0.83% shares], Yaxing chemical [7.86 0.90% shares], new agriculture development [14.31 -0.69% shares], Huayang Technology [14.34 9.97% shares], Oriental Silver Star [9.28 2.20% shares], Fucheng Wufeng [7.84 0% shares], purple light Han [14.10 0.71% shares], Shenzhen Hongji [0.00 0% stock bar, Shenzhen Guoshang [0.00 stock bar] and century star Yuan 0% stock bar].

The Shenzhen Stock Exchange stipulates that a small and medium-sized board company "in the last accounting year has been audited by a certified public accountant by issuing a negative opinion, or has been issued an audit report which is unable to express its opinions and the situation is considered serious".

In addition, the regulations on the issuance of securities issued by listed companies stipulate that if the listed company's recent three and latest financial statements are issued by the CPA with their reservations, negative opinions or audit reports which can not express their opinions, they will lose the qualification of public financing (including public offering, issuance and issuance of convertible bonds). The audit reports issued by the CPA with unqualified opinions with emphasis on matters will have no significant adverse impact on the issuer or the significant adverse effects before the issue has been eliminated.

That is to say, once the financial statements of listed companies are issued "non-standard opinions", their ability to publicly refinance will cease to exist for at least three years.

From the 2010 annual report, 31 companies lost their refinancing qualifications.

In addition, in a series of indices pushed by the Shanghai and Shenzhen Stock Exchange, there is a precondition for selecting the listed companies' earnings without issuing audit reports of non standard opinions.

As many investment funds link the scope of stock selection with index stocks, once a listed company is eliminated from the constituent stocks, it will lead to large scale sell-off of stock by institutional investors, resulting in a sharp drop in share prices.

Market veteran said that because of the risk of financing and stock prices, the companies who printed the "non standard opinions" stamp out the motivation of financial fraud.

119 listed companies

Replacement of accounting firms

It is noteworthy that the 2010 annual report released by the China Association of Certified Public Accountants (CPA) shows that a total of 119 listed companies have changed their accounting firms.

The company that changes the accounting firm includes the [17.23 0.47% shares of gold wind technology, the [54.42 -0.68% shares of Hao Hua energy, etc.

A senior auditor said, "in the past, companies and accounting firms were often replaced by disagreements."

He said that firms often had to issue "non standard opinions" audit reports and were "fired" by listed companies.

The "green earth" (now called *ST earth [16.16 -5.00% shares) has recently changed its accounting firm three times during the listing period.

The last time it was disclosed on the eve of the 2010 annual report, it was still issued by the accounting firm an "unable to express opinion" audit report.

Similarly, *ST triad, *ST Encyclopedia [9.82 0% shares and other companies also changed the accounting firm for three consecutive years, but they were mercilessly issued "non-standard opinions".

Therefore, when a listed company changes its accounting firms, especially when the reasons for replacement are not sufficient, investors need to be highly vigilant.

The real case shows that many companies in the listed companies that have made financial fraud have experienced the "foreplay" behavior of changing accounting firms.

The information released by the CPAs also shows that most of the companies that are issued with "unqualified opinion" audit reports with emphasis on matters are due to major uncertainties in their ability to manage their business.

In the companies that issue "reservations", every company is buried with different landmines.

Hong hung, who was issued a "reservations", was issued "reservations" by the auditing body for the violation of legal person shares and profits.

In addition, Yaxing chemistry, which was issued "reservations", was due to a large amount of capital pactions with the parent company Yaxing group. In 2010, it was under investigation by the regulatory authorities and it was not yet clear how the matter would affect the financial statements.