Replies to post #39794 on E-Waste Systems Inc. (fka EWSI)

[PhredGarvin]

Please post links.

Please post links of this auditor being in trouble. I can't seem to find them. It may be because they don't exist.

[buckyboy]

Fully audited and fully SEC compliant. No worries at all.

Number one growth story on the OTC 2014. Mark it...

[PhredGarvin]

Auditing the Auditor!

After checking out fraud accusations by DrHarleyBoy, I was able to successfully take a look at the new EWSI auditor. Malone Bailey and assess the accusation of fraud.

Lets start with basics, the PCAOB.

The PCAOB is a private-sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.

As a PCAOB member, Malone Bailey is subject to annual audits, as is every firm. Check out the website and try out various auditors including Malone.

http://pcaobus.org/Inspections/Reports/Pages/default.aspx


In 2009, there were accusations of numerical discrepancies based on oil and gas lease law in China, and the firm ultimately resigned from being the auditor. Oil and Gas law is likely as complicated in China as it is in the US.

This is from Malone Bailey Website referring to how they changed their auditing procedures to capture more of the subtle nuances of Chinese accounting.

http://www.malonebailey.com/About-Us/News-and-Events/Press-Releases/MaloneBailey-LLP-Announces-Speech-at-Nexia-2013-Annual-Conference/

Here is the PCAOB ruling on the Case, and at the end is the letter from Malone, accepting the ruling, but disagreeing with the logic due to the complexity of point of order.

http://pcaobus.org/Inspections/Reports/Documents/2011_MaloneBailey_LLP.pdf

IMO this is likely a discussion of the subtle nuances of PCAOB guidelines overlapping Chinese laws. Obviously with no criminal or civil followup cases, this was deemed a correctable point of accounting procedure rather than fraud.