1. Management with no integrity or transparency to own up to their own mistakes.
2. Doing excessive creative accountant which end up getting caught.
3. Management probably think paying services to the auditors and the auditors can settle everything. Thumb up to EY this time for walking away. Definitely right thing to do even thought that might hurt their client relationships (other clients worried as well)!
Based on my own view, the auditor will close one eye and try to document in a way that it is passable. Because of the DOJ intervene, EY probably knows that their audit files will be subjected to authority review. Somemore EY is just doing their first audit which is why they won't take the risk. Management from the other hand probably thinks that their creative accounts are aligned with the accounting standards and continue to act in their own ways.
This will be a big fall in prices again because we just cannot trust any of the numbers they reported! For people investing, better to stay conscious and knowing that the fall usually happens in pre or post market when you are unable to set loss limit. Such share is not worth taking risk so I suggest placing call options instead if you are keen to invest!:)
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- 家成。·11-06 06:27TOP搞不懂，一群连交易等级都没有的人在这天天发表评价。。。3Report