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Today in Sketchy Chinese Company News: Ernst & Young Suspends Audit of Zungui Haixi

It’s been quite the year for the Chinese-based, reverse-merger clients of accounting firms. There have been curious press releases, audit workpapers held hostage, and the run-of-the-mill blowing off of auditor recommendations among other things. With all that, you probably figured the fun was over.

Not so! The latest in China-doesn’t-really-know-what-the-hell-it’s-doing news is the report that Ernst & Young has walked out on Zungui Haixi, an athletic footwear and apparel company listed in Canada. Why? Well, it’s not really clear but it sounds like Zungui has some explaining to do:

Zungui said auditor Ernst & Young LLP has advised its board that its has suspended its audit for the year ended June 30, 2011, until the company “clarifies and substantiates its position with respect to issues pertaining to the current and prior year”.

Ernst & Young recommended that the issues identified be addressed by an independent investigation, the company said in a brief statement that did not provide any details on the issues.

As we all know, “issues” could be just about anything from missing cash, to a CFO resigning. Hopefully it’s nothing quite so serious and the crack squad of investigators assigned to the task will get to the bottom of it and not wait for Roddy Boyd to pick it up.

Zungui Haixi shares tumble after E&Y suspends audit [Reuters]

Weary Big 4 Auditors Are Invited to Live Out Their ‘What I Really Wanted to Be’ Dreams This Saturday

As busy season trudges along, some of you may be looking for a second wind. For many of you, any chance that you can reach down into your soul and conjure up a little more energy to help you reach the finish line passed with that blown deadline.

However, for anyone on the Isle of Manhattan that is looking for a little pick-me-up this weekend, we’ve been informed that there is a fiesta in the making (invitation art at right) and it invites you to harken for the days when your aspirations weren’t so practical:

My friend is having a party this weekend with what I think is a pretty clever theme. On Saturday, we will be attending “Fuck! We are Auditors (How did that happen)”. Description:

“Have you always dreamed of becoming an Auditor?

If so, this party is not for you. For everyone else, come celebrate the (nearing) end of busy season! The theme of FWAA is to dress up as something you wanted to be when you were a kid. So call up your mom or flip through your diary to see what aspirations you had when you were young. Points (more alcohol) will be given to those who have a very convincing outfit.

So don on a lab coat, leotard, or tiara, bring a little somethin’ somethin’ (alcohol), and come get your drunk on. Feel free to invite other auditor or drab job related friends. Perhaps this theme will inspire other auditors to put their life in perspective and go for it…or just drink more to our unachieved dreams. We obviously don’t mean any disrespect to our jobs (or firm. no need to bite the hand that feeds you) seeing as we just started, but any reason to drink/dress up right? It’s been a long busy season. One down, and god-knows-how-many to go.

And good news, the party-throwers (who wouldn’t share their firm with us) have deemed this all-firms-are-created-equal event, “we’re willing to look past those corporate labels and invite all auditors to party.” Of course if you’re not in the Tri-state area, you’ll have to organize your own dashed-dreams rager but the theme has been set. Cowboy, pro athlete, Miss USA, movie star, whatever you failed to be, you’re invited to pretend for a few awkward hours this weekend. As long as you’re not working of course.