It took me about 30 seconds to pull up these articles on Google. I’m not sure how much, if any, true research went into choosing Malone Bailey, LLP, by SIGO. They have had some serious problems over the years. That’s why I posted articles from 2011 and later – it establishes a pattern of behavior. Maybe they’ve learned their lesson. Don’t know. The latest report (2017) does not seem to indicate anything serious, but mostly small mistakes that are made by the best auditing firms. They do need to be careful because they are being watched carefully by an independent consultant.
From 2011 https://www.forbes.com/sites/walterpavlo/2011/04/15/reverse-mergers-pushers-may-be-the-problem/#633d73ea6413 “Reverse Mergers -- Pushers May Be The Problem The reverse merger business has been growing strong and has found an eager clientele in China. Now, investors are crying foul, the SEC is launching investigations and Chinese companies are in trouble for failing to comply with reporting rules of the exchange on which they are listed. At the center of these transactions are pushers, dealers in these transactions that profit whether the company makes money or not.”
(Malone Bailey, LLP is mentioned. The biggest crooks and cheats are undeniably Chinese companies, and Malone Bailey, LLC is the auditing company for more Chinese companies than anyone.)
FROM 2011 https://www.lexology.com/library/detail.aspx?g=e1379b97-2411-4914-9a86-7ca688fdca47 “MaloneBailey, identified in the PCAOB report as the U.S.-based firm with the most Chinese reverse merger company clients, was also the subject of a negative PCAOB inspection report dated February 24, 2011. This inspection report stated that “n some cases, the deficiencies identified were of such significance that it appeared to the inspection team that the Firm, at the time it issued its audit report, had not obtained sufficient competent evidential matter to support its opinion on the issuer's financial statements.” In my experience, reports containing such findings are routinely referred to the PCAOB enforcement staff for prosecution.”
2014 Inspection of MaloneBailey, LLP https://pcaobus.org/Inspections/Reports/Documents/2015_MaloneBailey.pdf "MaloneBailey was also censured and must retain an independent consultant and agreed to a number of other undertakings outlined in the SEC’s order." (In other words, the SEC has officially stated that Malone Bailey LLP can no longer be trusted to do the right thing. That's what this order states.)
By Natalie Olivo “Law360, New York (May 3, 2016, 8:19 PM EDT) -- The U.S. Securities and Exchange Commission said on Monday it has settled charges accusing Texas-based audit firm MaloneBailey LLP of ignoring red flags when auditing a Christian-themed video game maker whose CEO the SEC said falsely inflated its revenues through a circular kickback scheme.” Here is the latest report, published in 2017 https://pcaobus.org/Inspections/Reports/Documents/10-2017-156-MaloneBailey.pdf
It doesn’t appear that there were any illegal acts from the company: “11 AS 2405, Illegal Acts by Clients”. There were no comments for this subject.
The basic gist of this report is that they have to buckle down and be more professional in their approach: Stop making so many small mistakes; pay attention to the law and the rules of auditing. Right now they are slacking too much. They are still making mistakes, but there don’t seem to be many and from what I read, it appears these are mistakes made by most companies. They need to tighten things up and stay on the straight and narrow. At least that’s what I took away from this latest report.