A-Power trips up again over auditors
One of China's biggest wind turbine markers, US-listed A-Power Energy Generation Systems is still facing problems with its accountants. It turns out that BDO Daejoo LLC, which previously had agreed to act as its independent auditor, has resigned. In a swift move to overcome criticism its has signed up Simon & Edward, LLP to audit the company's financial statements for the year ended December 31, 2010.
The announcement comes as NASDAQ officials indicated in a new letter that the company's failure to provide the exchange with certain additional information requested in a letter to A-Power on September 9, in connection with an on-going inquiry regarding its continued listing means it is still being considered for de-listing.
Originally A-Power's shares were suspended when its first independent auditor, Canadian firm MSCM LLP, resigned. It said the company had to hire an independent forensic accounting firm to evaluate transactions. A-Power didn't do so and consequently MSCM could not sign off on the accounts. Three of A-Power's directors have resigned since then and Nasdaq officials have been investigating the state of the company's accounts.
A-Power claimed that BDO Daejoo said it had to rescind its acceptance because of internal issues with BDO International, a global network of accounting firms of which BDO Daejoo is a member firm.
According to A-Power, “The selection of Simon & Edward, LLP was based on the firm's extensive experience auditing public companies in the United States and China. The firm is a US based accounting firm with its offices in City of Industry, California and Beijing, China. The firm's partners include individuals with significant experience with SEC reporting requirements and SEC audits.”