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ZST Digital Networks, Inc. Message Board

  • tmkay tmkay Mar 31, 2012 4:33 PM Flag

    BDO didnt want to physically go again in March

    "In consideration of the AGREED UPON procedures WE (BDO) completed on Dec 20, 2011 for the cash verification req by Nasdaq, which included visiting in person of the bank, physically observing bank employees printing bank statements, etc WE (BDO) planned a more simple procedure to confirm the bank balance, but the company refused (the simpler procedure) and insisted we (BDO) follow the process the company had arranged (which was probably more thorough like visiting the bank again).

    Remember ZSTN has been claimed fraudulent and dint want to be lax with the auditing procedures while BDO obviously wanted simplification.

    In other words, in Dec BDO did follow the procedures of going to the bank but in March BDO didnt want to go to the bank again. BDO wanted to do things a simpler way (maybe BDO wanted to make a phone call?).

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    • You are right. Let us wait and see. I guess we have to wait little longer to find out the truth.

    • Sir:

      You really need to take a break.

      You sounded like ZSTN was still honest, it's the greatest company on earth. BDO was lazy to check for bank balance.

      From your response, I no long have any sympathy even if you lost all your money, because your really stubborn and deserve to lost every penny on ZSTN.

    • Sounds far fetched that the company insisted on more stringent control and BDO refused and quit. On the other hand, BDO did check the cash balance on December 20 using the much more stringent procedure detailed by NASDAQ and found the cash to be there. Remember that when there is such audit, the auditor does not merely check thatbthe cash is there but also all the balance sheet activity that led to the cash being there. So the Company could't have easily loaned the money forbthe audit......if the cash was there on December 20, they probably did have it.

      • 2 Replies to pomafernando
      • If I borrow some money from other people and call it account receivable, how can you tell?

      • Remember ZSTN has been accused of being fraudulent and they hate it.
        They didnt want BDO to follow a simple procedure. The CFO wnated BDO to go through a more thorough process and BDO didnt want to.

        I think the question is to ask BDO why they didnt want to visit the bank? My guess is that they didnt want to do it all over again for the quarterly, and wanted to do a more simpler procedure, that the annual was good enough to visit in person.

        It all has to do with ZSTN proving they are not fraudulent. I agree with ZSTN if this is what they desired but it might backfire in this case. Its too bad. My hope is all read the 8K carefully as I have. It should be much clearer.