It was interesting to read CMED�s latest annual report. Both CFO and one director are former KPMG employees. Mr. Takyung (Sam) Tsang was with KPMG up until 2004! This should raise a red flag for people who love to look at the books and numbers. This is a clear conflict of interest with least amount of imagination. Why hire these former employees and give independent accounting business to KPMG?
�Mr. Takyung (Sam) Tsang joined our company as our chief financial officer in January 2005. Mr. Tsang was an advisor to the company for the areas of accounting and finance from February 2004 to December 2004. Prior to joining us, Mr. Tsang worked as a manager of KPMG Hong Kong from March 2001 to January 2004, and also worked as a manager of Ernst & Young China from January 1999 to February 2001.�
�Mr. Iain Ferguson Bruce has served as a member of our board of directors since February 2005. Mr. Bruce is a member of the audit, compensation and nomination committees. Mr. Bruce joined KPMG in Hong Kong in 1964 and was elected to its partnership in 1971. He was the Senior Partner of KPMG from 1991 until his retirement in 1996 and also concurrently served as Chairman of KPMG Asia Pacific from 1993 to 1997.�
The lunatic weatherman apparently has an axe to grind. Nothing positive, nothing neutral, nothing balanced. Attack the accounting when you don't know what else to say. His plan --- just keep attacking, in the hope that someone with his single digit IQ will actually believe that his mind functions. Must be very worried about his short position.
Well first of all not much substance is required to challenge a ridculous claim that KPMG's independence is impaired merely by having former employees working for a client. If that were the case then the entire public accounting industry would cease to exist. With that said I worked for a top 4 accounting firm for many years. Like I said if you wish to provide something of substance to back up your claims I would be glad to look it over.
Do you realize how many former accounting firm employees take high level jobs in public companies that are then audited by their former firms? It is alot. The former employees retain know financial interest in the acounting firms so there is no conflict of interest. If the large accounting firms were barred from serving clients who hire former employees they would go out of business.
Its all legal but when you are dealing with a new kid in the block, you verify with extra scrutiny. The temptation is there always to make things look good.If you read carefully the annual report, the past and projected numbers do not add up. HIFU business has been going down hill for quite a while! GE is slowly getting out of the picture. CMED is selling ECLIA analyzer but not kits brcause hospitals are buying from other vendors. Its all in their annual report! Kits are the real money maker! If the trend continues, CMED will have real trouble in short time! FISH is so far away that nobody knows how the integration will go. GOOD LUCK!