Sat, Dec 20, 2014, 11:42 AM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

ZST Digital Networks, Inc. Message Board

  • gras2unpc gras2unpc Apr 2, 2012 1:13 PM Flag

    Can Someone Please clarify?

    From reading the 8-K and ehibits:
    1. BDO and ZSTN agreed on a scoped out audit.
    2. BDO decided to use a simplified method of verifying bank account balances.
    3. ZSTN says, "No, follow the scope"
    4. ZSTN says "By the way, we changed banks."
    5. BDO says "Since you closed the old account, we can't get the data from Bank 1 as required by the scope."
    6. ZSTN says, "Follow the scope."
    7. BDO says, "Well then, we quit. And by the way, our previous (3/11) audit wasn't valid, either."

    Is this fairly accurate? If not, what did I miss? If so, why would not ZSTN and BDO agree on a method for determining the bank balances? How hard can that be? And on what basis can BDO say that their previous audit cannot be relied on? They don't indicate that they uncovered any new data that would negate a year old audit.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The company will probably explain it in time; maybe during the CC for the annual meeting. It just another Chinese stock related crisis! Get over it! China is the country you want to be in -------- in the "long" run. That want the demographics experts on investing say; and everyone else; now we really have no choice in the matter unless you want to take a big lost. It an accounting issue. Insiders own 47% of the shares! I may go down with the ship but right now it is in rough waters in a storm; I am waiting it out for calm waters again with the sun overhead before I see clearly what is happening! I compare China now to the days in America in the 1840s where everyone is just heading "West" to make their fortune. We will know in two-three months is my time frame.

      • 1 Reply to Harry_Wild
      • It was a smart thing for Nasdaq to put a hold on the stock else there would of been a bloodbath.
        The 8-K states ZSTN is in the process of hiring another auditing firm--hope its a big 4.
        I believe there was a disagreement between BDO and ZSTN as I have stated.
        Lets all hang in there and wait as Harry says.
        Theres a bright sun shining on the horizon and everything will be OK when ZSTN explains all that is happening in a braodcast or on the CC.

    • Well its pretty obvious that BDO smells a rat and doesn't want any part of it.
      Perhaps the auditor fears for his or her life.
      But if ZSTN really does have cash, they should let NASDAQ delist them
      and then buy up what they can on the OTC market.
      Meanwhile poor Bo Zhong can live off his meager salary of $150k/year in Communist China where the average executive makes $14K/year.

    • One important thing you are missing is this: NASDAQ asked BDO to check cash balances using extremely thorough procedures (going to the bank in person, etc...) and on December 20, BDO found all the cash to be there. So 10 days before the close of year, BDO found nothing wrong after performing very detailed checks.

 
ZSTN.PK
0.350.00(0.00%)Oct 30 2:14 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.