Replies to post #71914 on China Growth Stocks

[bullmarkets]

This has been coming up a lot in private conversations with participants on a variety of boards, and is an area of concern to some creating a divide between, for example, those with accounting background who assume such checks and procedures are an implicit given, and non accounting-trained folks, skeptics, worried investors, and also some accountants too who want every nuanced detail of process to know what was really checked. Everyone wants doveryai, no proveryai (trust but verify). I'm all for procedure and glastnost (openess) especially with this much challenge to CCME ongoing. So you are not unreasonable given the question marks, skeptics, and heightened scrutiny, to seek to hear more from Deloitte and any potential putative penumbral backup auditor including the methodology and process of audit thereby also providing ample education on their audit procedures. I would not care if Deloitte announced their methods long in advance of earnings. Why not?Procedure is just procedure, isn't it? Nothing private or awry in saying how an auditor went about a verification. Adds trust to the audit and removes unknowns.

-Andrew

[rjeezy007]

CCME and Deloitte

From what I recall, a company does not issue an audit opinion on quarterly financial statements. However, this does not mean that Deloitte simply takes a year off and shows up for the annual audit in late Jan or February. Normally what happens is that procedures are performed on the quarterly statements and the auditor will examine certain things at these points in time, however, NO audit opinion is issued at this point. For example in comparison, I was looking at NE's (Noble) 10Q and their auditor who is PWC wasn't found signing off in the 10Q either. I'm going to try to look into this tomorrow and see if what I have said above is correct. I think a company can elect to have its financial statements reviewed at each quarter but this would become overly costly and is probably only beneficial for large corporations, I believe Microsoft obtains this from Deloitte at each quarter. Again, I'm just going off thought here, I'll try to get a better answer tomorrow.