PWC & Deloitte

[eddielee]

Deloitte's forensic is going on, it's hard to get any news though i tried my 'contact' in Mainland China (let me borrow Goldbaum's favorite term...LOL). Given the high confidentiality and the small forensic team mostly headquartered in Deloitte HK, it's understandable news are firmly locked up.

PWC, being NQ' auditor for many year since IPO, by standard practice, is officially required to be slient as well. The firm's standard practice in a fraud allegation senario also includes immdiate investigation into that clent and resign if investigation reveals allegations true. We did not see that for PWC.

My contact was able to get PWC's views, ofcourse privately. The messages are [ firm is confident about the company, no plan to quit auditor's role, auditor team members highly and reliably competent and trusted, confident on their own about sufficient audit procedures implemented ] Original reply in Chinese reads: 我问到了，内部肯定没问题，那个负责的合伙人很靠谱细致的人，相信审计程序上不会有问题，目前不会辞去审计，然后上下都封口令，不谈论, guys reading Chinese can check it up.

Should institutions / funds NOT know about PWC's take?

Any ideas?

[Mountainbiker]

Deloitte's forensic is going on, it's hard to get any news though i tried my 'contact' in Mainland China (let me borrow Goldbaum's favorite term...LOL). Given the high confidentiality and the small forensic team mostly headquartered in Deloitte HK, it's understandable news are firmly locked up.

PWC, being NQ' auditor for many year since IPO, by standard practice, is officially required to be slient as well. The firm's standard practice in a fraud allegation senario also includes immdiate investigation into that clent and resign if investigation reveals allegations true. We did not see that for PWC.

My contact was able to get PWC's views, ofcourse privately. The messages are [ firm is confident about the company, no plan to quit auditor's role, auditor team members highly and reliably competent and trusted, confident on their own about sufficient audit procedures implemented ] Original reply in Chinese reads: 我问到了，内部肯定没问题，那个负责的合伙人很靠谱细致的人，相信审计程序上不会有问题，目前不会辞去审计，然后上下都封口令，不谈论, guys reading Chinese can check it up.

Should institutions / funds NOT know about PWC's take?

Any ideas?

I am sure they do. Oberwiese already alluded to that " PWC would not have allowed Q3 numbers to be reported if they saw problems with their numbers".

[eddielee]

[/quote]

I am sure they do. Oberwiese already alluded to that " PWC would not have allowed Q3 numbers to be reported if they saw problems with their numbers".

[/quote]

all right, so PWC's positive attitude adds almost nothing significant, everyone already knows their take... was hoping for a boost...

[Mountainbiker]

By looking at the number of negative articles on SA, the shorts are trying their best to get the SP down before the audit comes out or other significant events emerge.

Painful but necessary!

[eddielee]

I guess most have been aware that PWC is positive and confident in NQ.

But to me, it's still better to have heard their ACTUAL WORDS.

Differently, auditors in earlier cases of real scandal, stepped away a few weeks after re-examining their clients.

[Mountainbiker]

I guess most have been aware that PWC is positive and confident in NQ.

But to me, it's still better to have heard their ACTUAL WORDS.

Differently, auditors in earlier cases of real scandal, stepped away a few weeks after re-examining their clients.

You are correct. That's why I find it hard to believe that the shorts keep piling on it disregarding all of the relevant news and/or expectations. I guess they wil not give up until they see the news from the Independent Committee's report. Not until that day comes, they will keep pushing it until it does no harm anymore.

[kshen]

Eddie, would you be able to clarify what the source is? We've heard multiple times that the person in charge of NQ account is very meticulous from various sources. Is this someone at Zhong Tian who gave your contact this message?

[eddielee]

kshen, my contact had been with the firm for over 10 yrs. he reached out  to his ex-peer.