China MediaExpress CEO Responds to Fraud Allegations by Falling Back on ‘Reputable and Well-Known Auditors’
For anyone out there concerned about Chinese companies who have less-than solid accounting practices, you can rest easy, as Gary Weiss reported in his TheStreet.com column yesterday:
All you have to do is believe in the infallibility of Big Four auditors!
Case in point, China MediaExpress Holdings is the latest company who hasn’t convinced everyone that their numbers are kosher, so their CEO, Zheng Cheng, went on the offensive:
Responding to allegations that the company is a “fraud and reported revenue is exaggerated by tens of millions of dollars,” China Media’s CEO Zheng Cheng said in a letter to shareholders: “The company is strong and doing well. Its revenues and cash position have been audited by reputable and well-known auditors who have confirmed both.” [Emphasis is GW’s.]
Those ‘reputable and well-known auditors’ just happen to be Deloitte, thankyouverymuch. Don’t think for a minute that we were dealing with Frazer Frost or some other firm that has had problems.
With China Small-Caps, It’s Shorts vs. Auditors [The Street]