Haitai Confectionery Sanctioned for Accounting Violations, Auditor Designated for Three Years

Securities and Futures Commission Resolution
Issuance of False Tax Invoices and More

Haitai Confectionery & Foods was found to have violated accounting standards when preparing and disclosing its financial statements, and has been penalized by the financial authorities, including a three-year designation of an auditor.

On September 16, the Securities and Futures Commission under the Financial Services Commission announced at its 16th meeting that it had decided to impose measures, including the designation of an auditor, on Haitai Confectionery & Foods for preparing and disclosing its financial statements in violation of accounting standards.

According to the Commission's investigation, Haitai Confectionery & Foods inflated its sales and cost of goods sold by issuing false tax invoices and omitting the accounting of sales discounts and promotional incentives. In addition, the company used financial statements that violated accounting standards in its securities registration statement, submitted fraudulent transaction evidence to external auditors, and was found to have instructed business partners to submit false confirmations of receivables, thereby obstructing the external audit process.

As a result, the Commission resolved to designate an auditor for three years, recommend the dismissal and suspend the duties of the head of the finance department for six months, recommend the dismissal of the previous auditor, and impose a fine. The head of the finance department and the previous auditor have been reported to the prosecution. The final amount of the fine will be determined by the Financial Services Commission at a later date.

Haitai Confectionery CI. Haitai Confectionery

This content was produced with the assistance of AI translation services.