Day: March 9, 2015

[Flashback] Accounting Fraud in Vietnam: Eyes turn to auditors after Bach Tuyet Cotton Corporation (BBT) accounting scandal; Vietnam Arrests Four More Former Vinashin Officials

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http://vietnamnews.vn/economy/business-beat/179237/eyes-turn-to-auditors-after-bbt-scandal.html

http://www.bloomberg.com/news/articles/2010-09-06/vietnam-police-arrest-4-more-former-vinashin-officials-amid-investigation

Posted by LE Hoang Trinh, Year 4 undergrad at the School of Information Systems, Singapore Management University

Eyes turn to auditors after BBT scandal

(08-08-2008)

by Nguyen Duy

Never before in Viet Nam has the accuracy of a company’s audited financial reports raised so much concern, and never before has the quality of auditing companies come under such heavy fire. The problem has grown so critical that the ministries of Finance and Public Security are drafting a circular to improve the circulation of information about listed company and auditor violations, according to director of the State Securities Commission (SSC)’s Investigation Department Hoang Duc Long.

Problems began with Bach Tuyet Cotton Corporation (BBT), a HCM City Stock Exchange listed company, when in mid-July, the exchange temporarily suspended transactions for BBT shares due to heavy losses in 2006 and 2007. The news came as a shock to investors, who had heard nothing but good reports about BBT. Continue reading →

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Hanergy Working With ‘Unproven’ Solar Technology, Bloomberg New Energy Finance Says, after Financial Times in January raised questions about the company’s accounting practices

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http://www.bloomberg.com/news/articles/2015-03-09/hanergy-working-with-unproven-solar-technology-bnef-says

Hanergy Working With ‘Unproven’ Solar Technology, BNEF Says

by Reed Landberg

March 9, 2015

(Bloomberg) — Hanergy Thin Film Power Group Ltd., the solar company whose market value has swollen to $36 billion, is working with “unproven” technology and has disclosed few details about the work that underpins its valuation, according to Bloomberg New Energy Finance. Continue reading →

Open Letter to SGX/MAS: Reply to CFO of SGX-Listed China Environment (CENV SP) on report “Potential Accounting Tunneling Fraud at China Environment?” – Address the accounting and governance concerns in an SGX/MAS announcement

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Related posts: (1) China Environment: Auditor Emphasis of Matter raises more questions on potential accounting tunneling risk; (2) CFO reply: https://asianextractor.com/2015/02/10/potential-accounting-tunneling-fraud-at-china-environment/#comment-785 (3) Does Auditor Explanatory Language in Unqualified Audit Reports Indicate Increased Financial Misstatement Risk? “Emphasis of matter” language predicts restatements

Dear Mr Chiar,

Thank you for your reply addressing part of the corporate governance and accounting issues that were raised in Part 1 of the three-part article series that was based on the financial statements audited by Baker Tilly TFW LLP. We note that Baker Tilly did not disclose the name of its local auditor partners in the subcontract work for the wholly-owned subsidiaries Fujian Dongyuan 福建东源环保 and Anhui Dongyuan (Footnote 13) with the carrying value of RMB673.5m in FY14 (FY13: RMB698.7m), which form a very substantial part of the asset value of the group. We also note that Baker Tilly was recently fined in Dec 2014 by the U.S. SEC over audit failures tied to a mainland company suspected of fraud involving undisclosed related-party transactions; the audit failure was a result of subcontracting the audit work to a local partner. Continue reading →