China Logistics Group, Inc. (fka CHLO)

[harr449]

RACKnRICKY, remember these stories about Sherb accounting firm?

Sherb was CHLO accounting firm but changed to "Russell Bedford Stefanou Mirchandani LLP"
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Accounting/Auditing Firm
RBSM LLP
805 Third Avenue
Suite 902
New York, NY, 10022
United States

http://www.otcmarkets.com/stock/CHLO/profile
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harr449 Wednesday, 11/13/13 09:47:48 AM
Re: harr449 post# 4635
Post # of 5474

Auditor Changes week ending 11/10/2013

November 10, 2013

Before getting to this week’s auditor changes, I want to close the book on Sherb & Co. Everyone who’s a regular visitor to the Auditor Carousel knows Sherb lost all their audit clients a while ago. This week, Sherb & Co. faced the wrath of the SEC (press release here, full SEC report here). Three Sherb partners have been barred from working with publicly traded companies for at least five years. The firm has also been fined $75,000. This is all in connection with Sherb’s audit of three companies based in China. The SEC report is not kind. Sherb & Co. gave them lots of material to work with. In one case, Sherb failed to spot a client’s gross overstatement of distributor revenue, and didn’t recognize some obviously phony bank accounts. In another case, Sherb & Co. signed off on cash-basis numbers as being US GAAP compliant. Still another client tried to pass off a completely unrelated location as one of their own. When auditors and client representatives showed up for a site inspection, the real owners started asking the visitors who they were. At this, the client representatives literally ran away. Sherb & Co. didn’t see a problem with it. And that’s just the interesting stuff. The report goes into nauseating detail on Sherb’s lack of audit planning, poor workpaper documentation, improper supervision, and lack of concurring partner review. Given everything the SEC found $75K seems to be an awfully low number.

http://auditorcarousel.wordpress.com/
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harr449 Wednesday, November 13, 2013 9:48:32 AM
Re: harr449 post# 4636 Post # of 5474

As of January 3, 2013, Sherb & Co., LLP was acquired by Russell Bedford Stefanou Mirchandani LLP. Sherb & Co., LLP provides accounting, auditing, and consulting services to individual and corporate clients. The firm offers due diligence, full-disclosure compilations, tax planning, quality control, financing, executive search, and management services. Sherb & Co. is based in New York City with an additional office in Boca Raton, Florida.

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=3735040