Posted On: 03/07/2014 11:55:02 PM
Post# of 3844
Possible explanation for the resignation of MaloneBailey:
http://www.acfe.com/fraud-examiner.aspx?id=4294976261
"The immediate problem is that Chinese law forbids the release of audit workpapers to U.S. regulatory agencies, referring to what The Wall Street Journal calls “state secrets.”
Because these Chinese companies who are partnered with EWSI are not willing or able to give Malone Bailey the necessary information for them to properly perform the audit, MaloneBailey's only course of action to protect itself from incurring the same punishment as the big 4 and BDO was to resign from EWSI as its auditor. This is all conjecture of course but it makes sense if you read the 8-k and then the article. Phred posted something similar on iHub. I hope this helps ease some of the anxiety. Also, the Chinese companies who are not able to give the necessary information are not necessarily committing some type of fraud or are without substance. This a governmental issue in China that does not translate well with the SEC's requests.
http://www.acfe.com/fraud-examiner.aspx?id=4294976261
"The immediate problem is that Chinese law forbids the release of audit workpapers to U.S. regulatory agencies, referring to what The Wall Street Journal calls “state secrets.”
Because these Chinese companies who are partnered with EWSI are not willing or able to give Malone Bailey the necessary information for them to properly perform the audit, MaloneBailey's only course of action to protect itself from incurring the same punishment as the big 4 and BDO was to resign from EWSI as its auditor. This is all conjecture of course but it makes sense if you read the 8-k and then the article. Phred posted something similar on iHub. I hope this helps ease some of the anxiety. Also, the Chinese companies who are not able to give the necessary information are not necessarily committing some type of fraud or are without substance. This a governmental issue in China that does not translate well with the SEC's requests.
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