(07-18-2014, 03:35 AM)Makaveli0530 Wrote:Not making any excuses for management, but what about the possibility that PwC is trying to get fired? They aren't resigning because they can't point to any legitimate reason, fraud, etc...But they are trying to wait out the clock. Keep expanding the scope until NQ is forced to fire them. What should NQ do if this is the case (and I'm just speaking hypothetically here)?
There are few examples like these. The recent one happened with China company that listed in Hongkong (蜡笔小新 01262-HK). I just read story about this company and seems it's kind of similar with NQ. They are accused of exaggerating sales and profit and auditor requested expand scope but didn't give a specific timeline. The company fired auditor in May and find a new one in June. Looks like story is ongoing.
In order to find new auditor, they seems need seek approval from different sources like bank that offered loans. It will be a long process and will hit investor's confidence again during the process.