The issue why REDtone Asia uses an "auditor of last resort" (I wrote about this subject here) is soon not relevant anymore since REDtone announced it will sell its 92.31% stake in the company.
From The Edge:
REDtone International Bhd is selling its entire 92.31% stake in REDTone Asia Inc to Million Vision Development International Ltd for RMB38.31 million (RM23.78 million), to streamline and rationalise its operations including the divestment of non-income generating subsidiaries.
The telecommunication services provider said the disposal consideration is to be satisfied via two methods.
Firstly, the assumption of debt by the purchaser of a sum of RMB21.31 million (RM13.23 million) being amount owing by REDTone International to REDtone Asia and/or its subsidiaries; and secondly, the balance of RMB17 million (RM10.55 million) to be paid in cash.
REDTone International said its original cost of investment in REDtone Asia is about RM75.43 million, incurred since 2010.
As at July 31, the carrying value of REDtone Asia at the group is about RM16.82 million.
Million Vision was incorporated in Hong Kong as an investment holding company on April 28, 2016. Its present director and shareholder is Chan Wa Faat.
Showing posts with label REDtone. Show all posts
Showing posts with label REDtone. Show all posts
Saturday, 8 October 2016
Friday, 3 June 2016
Why REDtone used "auditor of last resort"?
David Webb wrote:
US PCAOB sanctions AWC (CPA) Ltd, its New York affliate and 4 individuals
The shocking allegations, which are not denied in this settlement, involve the 2010-2012 audits of Kandi Technologies (Nasdaq: KNDI). Incidentally, AWC (CPA) Ltd changed its name last month to DCAW (CPA) Ltd after combining with Dominic K F Chan & Co. The settlement brings into question the continued role of Albert Wong Chi Wai, the engagement partner on the audits, as an INED of 5 HK-listed companies.
Paul Gillis wrote about the same matter:
"PCAOB bans auditor of last resort"
Regarding Kandi, a 2014 article from "ShareSleuth" (backed by Mark Cuban).
Some of the companies that were audited by this audit firm can be found here, here and here.
Relevant for Malaysia is REDtone Asia Inc., a 92% subsidiary of REDtone International Bhd, listed on the US OTC (Over The Counter) network.
On May 16, 2016 REDtone Asia Inc. changed its auditor to DCAW (CPA) Ltd.
According to Paul Gillis, that is a "stunt that should not work":
As the PCAOB disciplinary proceeding came to a conclusion, AWC merged with effect from April 30, 2016 with Dominic K.F. Chan & Co to form DCAW, a firm that filed to succeed to the PCAOB registration of Dominic K.F. Chan & Co. That seems a clever way to circumvent the imminent ban of AWC. On May 9 AWC’s clients announced they were changing auditors to DCAW. The AW in the name presumably is Albert Wong. Albert Wong, however, is personally banned from association with PCAOB registered firms for at least two years. I am sure the PCAOB is looking into this odiferous situation.
Was REDtone really not aware of the reputation of the auditor of its subsidiary?
US PCAOB sanctions AWC (CPA) Ltd, its New York affliate and 4 individuals
The shocking allegations, which are not denied in this settlement, involve the 2010-2012 audits of Kandi Technologies (Nasdaq: KNDI). Incidentally, AWC (CPA) Ltd changed its name last month to DCAW (CPA) Ltd after combining with Dominic K F Chan & Co. The settlement brings into question the continued role of Albert Wong Chi Wai, the engagement partner on the audits, as an INED of 5 HK-listed companies.
Paul Gillis wrote about the same matter:
"PCAOB bans auditor of last resort"
On May 19, the Public Company Accounting Board revoked the PCAOB registration of Hong Kong CPA firm AWC (CPA) Limited (AWC), formerly known as Albert Wong & Company. AWC has long been one of the auditors of last resort for Chinese companies listed in the United States, particularly those that came to market through reverse mergers.
The client that finally brought down AWC was Kandi Technologies Group, Inc. (Kandi). Kandi is a Chinese electric vehicle company that was still using AWC as auditor for 2015.
The client that finally brought down AWC was Kandi Technologies Group, Inc. (Kandi). Kandi is a Chinese electric vehicle company that was still using AWC as auditor for 2015.
Regarding Kandi, a 2014 article from "ShareSleuth" (backed by Mark Cuban).
Some of the companies that were audited by this audit firm can be found here, here and here.
Relevant for Malaysia is REDtone Asia Inc., a 92% subsidiary of REDtone International Bhd, listed on the US OTC (Over The Counter) network.
On May 16, 2016 REDtone Asia Inc. changed its auditor to DCAW (CPA) Ltd.
According to Paul Gillis, that is a "stunt that should not work":
As the PCAOB disciplinary proceeding came to a conclusion, AWC merged with effect from April 30, 2016 with Dominic K.F. Chan & Co to form DCAW, a firm that filed to succeed to the PCAOB registration of Dominic K.F. Chan & Co. That seems a clever way to circumvent the imminent ban of AWC. On May 9 AWC’s clients announced they were changing auditors to DCAW. The AW in the name presumably is Albert Wong. Albert Wong, however, is personally banned from association with PCAOB registered firms for at least two years. I am sure the PCAOB is looking into this odiferous situation.
Was REDtone really not aware of the reputation of the auditor of its subsidiary?
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