"Deloitte's resignation as auditor of a Hong Kong-listed childrenswear company this week could be the first in a run of accountant departures from Chinese companies in the coming weeks as the audit season draws to an end."
Deloitte has become almost an acronyms for fraud and corruption. Why SEC still allow them as recognized auditors? This culprit's license should be suspended forever. When a doctor perform illegal practice, the medical board suspend their license. Why same standard don't apply for auditors?
Hishighnessindia, Your comment just shows how ignorant you are on financial issues including audit and auditors. No wonder you could so easily believe in MW while the majority of the investing world do not - look at the market, it has spoken in the form of moving FMCN's price from below $10 to over $27. From your comment, I won't be surprised if you feel puzzled why the market is behaving like it has.
Deloitte had plenty of time to resign from FMCN, they did not and looks like they will not because MW are wrong this time and FMCN is a legitimate good company with great ideas (some, like the Q-card and mobile-phone ads, are more advanced than similar companies in the USA) and a good business with great cash flow in China. We will find out more on Monday when the earnings are released. I do have a stop-sell order just in case of a major negative news.
Great ideas and big dreams about the future don't put money in the bank. Deloitte will audit FMCN's past and present. Bank confirmation procedures will be very strict this year. There are many other gaps to be filled as well.