While it is good news KPMG will audit books for additional listing, did I read the PR right in that their CURRENT auditors will remain and KPMG has been secured to ONLY audit for the sake of the listing? It sounds like once they are done with that task we continue with our current arrangement? right?
Though, it will be good to have another pair of eyes on the numbers...and, perhaps this move means they have confidence the suit will go away, even if requiring a settlement.....PLUS, it sounds like they have their eyes on an acquisition. Should be time to move up...but I don't expect "explosive" growth yet.
I see this as a major stepping stone. The big four have been reluctant to take on any new clients, but the hiring of KPMG to do this audit should help them in eventually moving to a big four auditing firm if not to KPMG itself as their new auditor of the future.
KPMG will audit ALL their financials, as in the U.S. and China, for the Taiwan listing, which will include an audit for FY 2013. After they give their stamp of approval, Kabini will still be their auditor. But that's still a big deal as it would wipe out any suspicions of fraud that have suppressed the stock price for the past two plus years.
1. Kabani has never had problems with Chinese companies they represented..can not say that about top 10 accounting firms.
2. This is a stepping stone..eventually a top firm will be auditor for LLEN..mmmm I wonder who?
3. LLEN would not hire KPMG and pay the huge fees if books were not clean.