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FAB Universal Corp. Common Stoc Message Board

  • lbcb321 lbcb321 May 7, 2014 11:10 AM Flag

    Friedman LLP Gone As Accounting Firm

    8-K filed yesterday.

    The first shoe drops....

    "Company personnel were not readily available to assist Friedman in completion of certain audit procedures, (b) certain requests for additional documentation and procedures were not complied with, and (c) Friedman was unwilling to express an opinion on the Company’s financial statements prior to the completion of the Internal Investigation and prior to the confirmation of bank balances at certain depository institutions in China"

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    • Will the delisting threat subside if Fab provides 10K for 2013 ? Or will it go on no matter what KCCW does to file 10K ?

      • 2 Replies to vvrm
      • SEC views the reverse split approach to get listed on a US exchange for Chinese companies as a loophole for fraud / investor scams. NYSE and other exchanges are probably on notice that these securities should be delisted at the first sign of irregularity.

        This will be delisted. The market cap is very small. There is very little upside to NYSE and a heck of a lot of downside. SEC has told big 4 accounting firms that they should not audit / attest for these companies going forward.

        Please stop hoping beyond hope. Equity holders should realize there is little to no value left. FAB CEO and CFO should consider moving out of the country if they haven't already.

        Maybe a shareholder in the Pittsburgh area should drop by corporate headquarters and see if the lights are still on.

      • "Will the delisting threat subside if Fab provides 10K for 2013 ? Or will it go on no matter what KCCW does to file 10K ?"

        FAB needs to get by the oral hearing which was be sometime in the next 6 weeks (minimum 25 business days). The NYSE can give them a 6 month extension to file the their 10K, so the actual filing is not that important. What is important is the NYSE wants an opinion letter from their current auditor stating the process is on going and expected to be completed within a reasonable time frame.

        What I'm thinking is FAB is not sure the Loeb report (forensic audit) will be finished before the oral hearing date and wanted at least a letter from their auditor to bring to the hearing. Their previous auditor passed on the letter and appears to have shut down before viewing the results of the forensic audit currently being conducted.

        Sentiment: Hold

    • LB,

      As you are prone to do, you cropped the quote to leave out pertinent contextual information that the Internal Investigation was a factor in the attentiveness of FAB to the auditors. I'm sure that was an accident and you are objective. :) Yea, sure...

      "During the year ended December 31, 2012, which was audited by Friedman, and the year ended December 31, 2013, which Friedman was engaged to audit, and the period from January 1, 2014 to April 30, 2014, when Friedman was still the auditor of record and performing auditing procedures, (i) there were no disagreements with Friedman on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to Friedman’s satisfaction, would have caused Friedman to make reference in connection with its opinion to the subject matter of the disagreement, except that (a) due to the time requirements placed on management because of an internal investigation (the “Internal Investigation”) being conducted by an outside independent consulting firm at the same time as the audit, Company personnel were not readily available to assist Friedman in completion of certain audit procedures, (b) certain requests for additional documentation and procedures were not complied with, and (c) Friedman was unwilling to express an opinion on the Company’s financial statements prior to the completion of the Internal Investigation and prior to the confirmation of bank balances at certain depository institutions in China, and (ii) there were no “reportable events,” as that term is described in Item 304(a)(1)(v) of Regulation S-K. The report of Friedman on the Company’s financial statements as of and for the fiscal year ended December 31, 2012 did not contain an adverse opinion or a disclaimer of an opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles."

      • 1 Reply to truthwantsout
      • =As you are prone to do, you cropped the quote to leave out pertinent contextual information

        You really are amazing. I stated there was an 8-K out so people could read it for themselves. I never claimed to be posting the whole thing. You just look ridiculous with your twisting of everything.

        You and Joe kept claiming they would file for sure. Only frauds go dark. I correctly told you the multiple reasons why they would not file. The attorneys would advise against it and it was highly unlikely their auditor would sign off on it with the allegations out there. Instead of just saying, "you were right"... you need to twist it when I merely pointed out there was an 8-K to read.

        By the way... Joe has also pointed out over and over that FAB was legitimate because their auditor was still there. One by one, all the pieces of the foundation are crumbling yet the delusional will still stand underneath until the building crashed down on top of them.

        Only frauds go dark.
        They will get an extension from the NYSE for sure.
        All is well since the auditor is still there.

        What's next?

        And you still think this is going higher when it opens?

    • New accounting firm:

      Edward C. Wu, CPA, MBA
      Managing Partner / Founder

      Mr. Wu is the founder of KCCW Certified Public Accountants. Throughout his accounting profession, Mr. Wu has established sound reputation in Southern California in providing quality and timely services to a broad spectrum of our clients. Prior to starting KCCW, he was an audit managing partner at a U.S. regional Certified Public Accountant firm, also registered with PCAOB. Mr. Wu served at the audit practice of Deloitte & Touche, LLP in Los Angeles, one of the Big 4? international accounting firms, where he oversaw various projects of the SEC Form 10-K and 10-Q filings and Sarbanes-Oxley Act Section 404 internal control implementation and compliance engagements for U.S. SEC registrants.

    • On April 30, 2014, FAB Universal, Corp. (the “Company”) engaged KCCW Accountancy Corp. (“KCCW”), as its principal accountant, and on the same date dismissed Friedman LLP (“Friedman”).

      As of the date hereof, the audit of the Company’s financial statements for the fiscal year ended December 31, 2013 has not yet been completed; however, the Company expects such audit to be completed as part of KCCW’s engagement.

      During the year ended December 31, 2012, which was audited by Friedman, and the year ended December 31, 2013, which Friedman was engaged to audit, and the period from January 1, 2014 to April 30, 2014, when Friedman was still the auditor of record and performing auditing procedures, (i) there were no disagreements with Friedman on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to Friedman’s satisfaction, would have caused Friedman to make reference in connection with its opinion to the subject matter of the disagreement,

 
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