The firm has had about all the fun it can handle trying to audit Chaoda Modern Agriculture.
In a statement Thursday, Chaoda said that in a letter on Apr. 26, BDO said that despite continuing with the audit for a prolonged period, it was not in a position to conclude. It said the move was based on a reassessment of the professional risk associated with the audit, among other factors. Chaoda said in a statement the auditor confirmed that there are no matters that need to be brought to the attention of the company's shareholders, but the decision will delay the resumption of trading in its shares. Chairman Kwok Ho said in the statement the company was surprised by BDO's decision and the reasons the auditor gave for the move.
I guess if you weren't talking about the Kwok Ho that was accused of insider trading last fall, I suppose this resignation could come as a surprise. But since we are talking about the same Kwok Ho, we'll stick with the theory that trying to audit in China is nightmare.
