Others   

S-Chip

A lesson costs some one millions.... Is that worth?

Alligator      ( Date: 30-Mar-2009 12:29) Posted: never too late to learn.  a lesson , especially very painful type, will make a person re-think strategy and change must take place

 

Totally agreed - auditors need to be prudent in their audit, be it good or bad time.

I'm working in a US non-listed co. Recently I just rebuked the auditor from the big recognised audit co. - she asked me why there is a such a big drop in the stock in Dec kept by our distributors. I told her that it's due to festive period + distributors year-end closing, so they kept less inventory. And I told her this is the trend in the past few years, why she only asked now. She was muted.

So, she was sleeping in the past few years audit and wake up only recently....

ekekeg      ( Date: 30-Mar-2009 11:10) Posted: My thinking is:  In good times as in bad times, the auditors should be doing the same job of checking thorougly on listed companies' accounts and ensure they are reported accurately and meticulously taking into accounts everything that concerns the equity of the companies.  This will do the shareholders a favour. Nevertherless, investing public would always like to be reassured that the staff of auditors refrain from using privy information to tickle the markets.  We must observe this code seriously. Cheers.

 

never too late to learn.  a lesson , especially very painful type, will make a person re-think strategy and change must take place

 

If only I had known it on mid 2008, That would be great. Would that be to late to know now?

Alligator      ( Date: 30-Mar-2009 10:58) Posted: March 30, 2009 S -chips under greater scrutiny Auditors are focusing more attention on risky areas, such as cash flow By Yang Huiwen AUDITORS have raised red flags over nearly half a dozen S-chips in just the past week alone, as they step up checks on companies. And with the financial crisis still raging, analysts expect even more such cases to come to light. In the past few days, the auditors of China EnerSave, Sino-Environment Technology Group, Celestial NutriFoods and Ocean International have all raised doubts in audit reports over the capacity of these businesses to continue operations. RELATED LINKS  CHINA FIRMS AND THEIR WOES Another China company listed here, China Sun Bio-chem Technology Group Company, even had its shares suspended from trading after its auditors questioned the existence of certain debtors in the firm's books. It joined the likes of FerroChina, China Printing & Dyeing, Beauty China, Oriental Century and FibreChem Technologies in having their shares suspended. Auditors are doing more checks on companies' books as they rush to complete their audit reports for companies with a Dec 31 year-end. 'The credit crunch and economic downturn have prompted the various parties to be extra vigilant,' said the vice-president of the Institute of Certified Public Accountants of Singapore, Dr Ernest Kan. That is not to say that they have not been doing their work, added Dr Kan. But the financial crisis and the recent reminders by the Accounting and Corporate Regulatory Authority and Singapore Exchange have resulted in auditors focusing more attention on risky areas. For example, auditors are now asking companies to do a cash flow and profit forecast for the year so that the auditors can assess their future prospects and see if the firms have enough funding coming in. This is usually not necessary in good times as cash flow is taken for granted, said Dr Kan. Read the full story in today's edition of The Straits Times.

 

My thinking is:  In good times as in bad times, the auditors should be doing the same job of checking thorougly on listed companies' accounts and ensure they are reported accurately and meticulously taking into accounts everything that concerns the equity of the companies.  This will do the shareholders a favour.

Nevertherless, investing public would always like to be reassured that the staff of auditors refrain from using privy information to tickle the markets.  We must observe this code seriously.

Cheers. 

 

Auditors are focusing more attention on risky areas, such as cash flow

By Yang Huiwen

AUDITORS have raised red flags over nearly half a dozen S-chips in just the past week alone, as they step up checks on companies. And with the financial crisis still raging, analysts expect even more such cases to come to light.

In the past few days, the auditors of China EnerSave, Sino-Environment Technology Group, Celestial NutriFoods and Ocean International have all raised doubts in audit reports over the capacity of these businesses to continue operations.

RELATED LINKS  CHINA FIRMS AND THEIR WOES

Another China company listed here, China Sun Bio-chem Technology Group Company, even had its shares suspended from trading after its auditors questioned the existence of certain debtors in the firm's books.

It joined the likes of FerroChina, China Printing & Dyeing, Beauty China, Oriental Century and FibreChem Technologies in having their shares suspended.

Auditors are doing more checks on companies' books as they rush to complete their audit reports for companies with a Dec 31 year-end.

'The credit crunch and economic downturn have prompted the various parties to be extra vigilant,' said the vice-president of the Institute of Certified Public Accountants of Singapore, Dr Ernest Kan.

That is not to say that they have not been doing their work, added Dr Kan.

But the financial crisis and the recent reminders by the Accounting and Corporate Regulatory Authority and Singapore Exchange have resulted in auditors focusing more attention on risky areas.

For example, auditors are now asking companies to do a cash flow and profit forecast for the year so that the auditors can assess their future prospects and see if the firms have enough funding coming in.

This is usually not necessary in good times as cash flow is taken for granted, said Dr Kan.

Read the full story in today's edition of The Straits Times.