Now 34 working days after announcement of engagement of Deloitte: educated guess
On August 3 the Orient Paper Audit Committee announced the engagement of Deloitte and Touche (see below).
Let's make an educated guess when this report comes out.
So when you consider: - the importance of this report, - the size of the firm - the complexity - the time of the year (August, September) - the meaning of Orient Paper for Deloitte and Touche as a possible new client (BDO is at present their accountant) - given the full co-operation of Orient Paper
Is my question: how much time (working day's) would you (being a senior accountant with 20 years experience) and your team (2 seniors and 2 juniors) need to submit your report? Working full time, starting August 3).
Having a team of 5 persons working wil cost Projectleader 1 * $ 2000,- /day Senior 2* $ 1500,- /day Juniors 2 * $ 1000,- / day
Total $ 7500 / day for the whole team
Total expences Augus 4 - September 17: 4 days + 6 weeks --> 34 * 7500,- = $ 255,000.-
They could have worked now for 34 (days) * time size (5) * 8 (hours a day) = 1360 hours.
That's quite a lot of time... uhmmm... so it will be published soon?? But I am not an accountant.
I hope there are people active on this message board who are working as an accountant can help me to make a better 'guess'. Which variables do I miss? Are the parameters (cost / day), team size correct? Assumptions correct? (working full time? Availabilty of staff etc)
Orient Paper Audit Committee Announces Engagement of Deloitte & Touche Fi... PR Newswire - Aug 3, 2010
It's likely Deloitte would not accept this assignment if they were given a "deadline". They are very thorough and somewhat anal. That would be moreso the case in a contentious matter like the MW accusations of fraud.
Another poster has determined after and e-mail exchange with the CFO, Winston Yen, that the report may be forthcoming in about 3 weeks plus/minus.
It's in investors best interest for Deloitte to conduct their investigation of the MW accusations with no pressure to meet "deadlines". When the report is released we want a clean bill of health on the fraud allegations by MW. That will clear the air once and for all about the integrity of this company, its BOD, and its management team. The stock will then find its true intrinsic value over the coming months.
The release of report has no relevance in regards to the class action BS lawsuit. From everything I have gathered from ONP investor relations and every sec filing in the past. ONP is doing the right thing with shareholders best interest at hand. When this is finished, I believe the results will match last quarters 10Q, the shorts will be done along with the lawsuits...Lawyers can file these anytime, anyday, for whatever reason they come up with..Every public co usually faces these at some point. Oct 5th was set to get a lead plantiff. which they may not even get. I have talked with two of the firms, both told me it takes 3-5 years to get a settlement, and that's if they are successful..The one Attorney hardly knew anything about ONP, his statement was ...I believe with the stock drop there's enough to build a case on..Give me a break..so your firm will recieve 42% of any settlement and it will go on for 3-5 years...Yes... .These suits are just ambulance chasers down wall st. It will go nowhere.. Lets the shorts pile it on for now...the stock is a steal here, thankyou, I'm buying more monday
Jan, The best person to reply to this question is phillydog04. The report could likely be finished! The question becomes what is the best release time? Originally, Orient Paper ask for an 'internal independent audit' to respond to Muddy Waters' allegations. Muddy Waters have 'moved on' BUT their allegations now form the 'backbone' of the class action law suits. As no class action law suit has yet been certified, I assume the company is awaiting developments in this arena. I certainly would! The class action attorneys must file on or before October 5, 2010. I do NOT KNOW if they can ask for an extension due to a 'NEW DEVELOPMENT'! If they can, I am sure they will as ATTORNEYS LOVE TO DELAY! I expect no announcement from the company before October 6 at the earliest! GEM will tell you that all those lawyers and BARRON's reporters ARE GOING TO FIND SOMETHING! In fact, she already has and Mr. Philippe Kim, Esq. did tell my husband that their investigation is 'on going' on the ground in China. They feel that with 'enough money' being thrown at it someone in the Orient Paper inner circle or some PRC tax functionary will disclose 'something'. Remember that the reporter from the 21st Century Hearld is still 'on the ground'. SINA reported the presence of the Rosen Law Group and Mark Henning at the Roth Capital presentation in Hawaii which has never been reported elsewhere. I say that any response from the company will come no earlier than October 6 unless a class action law suit is certified and at the latest in mid-November with the announcement of 3rd quarter results and perhaps NEVER!