Logiq Inc (LGIQ)

[GoodGuyBill]

HOW CAN THE SEC ALLOW WEYL TO CONTINUE THEIR RUSE!!!!

How can "we" or you trust the 10-K info given the public accounting company they use are freaking charlatans...in the worst way.

According to WEYL's 10-K (in the "Report of Independent Registered Public Accounting Firm" section) WEYL uses the following public accounting firm:

Centurion ZD CPA & Co.
Hong Kong
March 30, 2020

We have served as the Company’s auditor since 2012

I googled Centurion ZD CPA and this is what I found:

HKICPA piles on to PCAOB action

https://www.chinaaccountingblog.com/weblog/hkicpa-piles-on-to-pcaob.html

The Hong Kong Institute of CPAs (HKICPAs) functions as the regulator of the CPA profession in Hong Kong. Nearly every country in the world has abandoned self-regulation of the profession because it is apparent the profession never really regulates itself. There have been proposals to enhance audit regulation in Hong Kong by transferring regulation from the HKICPA to the Financial Reporting Council. But after a long round of consultations in 2014 nothing has happened, and Hong Kong remains an unfortunate outlier operating well below international standard. It has been promised that legislation will be introduced to establish independent audit regulation by the end of this month.

There is an interesting disciplinary case by the HKICPAs against a Hong Kong CPA firm and three of its partners because the firm had been banned by the PCAOB for faulty audits. The firm was Albert Wong & Company, that later morphed into AWC (CPA) Limited, and then DCAW (CPA) Limited and in its current incarnation is Centurion ZD (CPA) Limited (Centurion). In its Form 3 filed with the PCAOB to report the Hong Kong sanctions, Centurion admits it is the successor to banned firm AWC (CPA) Limited. I fail to understand why the PCAOB ban did not apply to the successor firm. Despite the fact that AWC (CPA) Limited was banned from PCAOB practice, Centurion remains registered with the PCAOB and has issued 34 audit reports on US listed companies this year. I think they may have pulled one over on the PCAOB.

What is significant about the HKICPAs action is that they pursued it on an audit of a U.S. listed company. I think this is the first time they have found fault with audit work of a firm that was not based on a Hong Kong report. The penalty is consistent with the profession-friendly self-regulator - the penalty is a reprimand and a fine of HK$25,000 (US$3,200). Contrast that to the PCAOB penalty of banishment and a US$10,000 fine. Hong Kong really needs to up its game in audit regulation.

Nov 30, 2017 at 11:22 PM

and....

Hong Kong Finally Acts Against US-Sanctioned Accounting Firm, Three Accountants

https://www.cfoinnovation.com/accounting-compliance/hong-kong-finally-acts-against-us-sanctioned-accounting-firm-three

More than one year after US regulator Public Company Accounting Oversight Board (PCAOB) revoked the US registration of Hong Kong audit firm AWC (CPA) Limited, the Hong Kong Institute of Certified Public Accountants has reprimanded the firm and three CPAs. It ordered two of the parties to each pay an administrative penalty of HK$25,000 (US$3,200).

The parties reprimanded and fined are Wong Chi Wai, Chung Mun Leung and Wong Fei Cheung, all certified public accountants, and Centurion ZD CPA Limited (formerly known as DCAW (CPA) Limited and AWC (CPA) Limited). The Institute, the statutory body responsible for the professional training, development and regulation of certified public accountants in Hong Kong, said the respondents failed or neglected to observe, maintain or otherwise apply professional standards.

Barred in the US

On May 16 last year, the PCAOB ruled that the four parties violated its rules and standards as well as those of the US Securities Act in relation to the 2010-2012 financial audit of US-listed firm Kandi Technologies Group. AWC was the company’s external auditor. Wong Chi Wai was engagement director and Chung Mun Leung engagement quality reviewer, while Wong Fei Cheung was director of audit.

The parties settled the case with the PCAOB without admitting or denying the findings, which included failures in identifying related-party transactions, preparing sufficient and appropriate audit documentation, and identifying an independence violation. AWC was fined US$10,000 and had its US registration revoked, with a right to reapply after two years. Wong Chi Wai was also fined US$10,000 and barred from being an associated person in the US, with the right to request lifting the bar after two years.

Fined in Hong Kong

The PCAOB fined Chung Mun Leung and Wong Fei Cheung US$5,000 each, with Chung granted the right to request lifting a bar on being an associated person in the US after two years and Wong after one year. The HKICPA has now fined Centurion and Wong Chi Wai the equivalent of US$3,200 each. In addition, all four respondents were ordered to jointly pay costs of HK$10,000 (US$1,280).

The audit firm and the three accountants were reprimanded, but not barred from practicing in Hong Kong. The Institute exercised its power to offer a Resolution by Agreement “in uncontested cases considered to be moderate after taking into account the nature and gravity of the complaint, past disciplinary records of the Respondent and any aggravating or mitigating circumstances.”

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