Accounting News Roundup: China’s Frauds; Goldman’s Audit Committee; O’Keefe’s Nonprofit | 05.27.11
The Audacity of Chinese Frauds [NYT]
In mid-March, just after the fraud at China MediaExpress was exposed, Longtop announced plans to put some of the cash to use by spending up to $50 million to repurchase its own shares. On April 28, the company tried to assure analysts that the fraud claims were bogus. Derek Palaschuk, a Canadian accountant who served as the company’s chief financial officer, wrapped himself in Deloitte’s prestige, saying that those who questioned Longtop were “criticizing the integrity of one of the top accounting firms in the world.”