Muddy went to visit the factory for a due diligence for a Research firm in L.A. for pay. The deal was never realized for reasons unknown. According to Muddy, the deal was never realized because of his negative view of the company. However, Muddy also admitted that they formed a negative view of the company before they even set foot in the company. Four people with different agenda visited the same factory at the same time, formed completely different opinios; "you always believe what you want to believe". Muddy also admitted that the allegation of ONP inflating their financial statement of 2008 by 27 times was wrong because he compared the financial statements filed to Chinese Government of HONP with that of ONP sent to SEC. We will not know whether the allegations of Muddy is accurate until the audit of 2010 is finished. Being a very reputable accounting firm, BDO will undoubtly make extra effort to confirm the figures presented to them this year.It will take 6-8 months for the next audit report to come out. Stay tune.
How have you come to the conclusion that BDO is a reputable accounting firm? Can you provide their name, addresse, phone number and website so we can review it or are we just supposed to rely on your word?
BDO is one of the worlds largest accounting/auditing firms. It's not one of the Big 4, but it's right behind them. Many people recognize their name as one of the major account firms. If you want to check them out, just go to BDO.com. They are a huge recognized firm, so you probably don't have to worry as much about bribes and lack of manpower/resources to do an audit correctly. It is actually quite rare for a Chinese microcap to pay up for a big auditor.
Doesn't mean ONP is not a fraud, anything is possible (ex: Enron had a top auditor at the time). But if the business model is a fraud, why would it pay top dollar for good auditors, it would make more sense to pay little money for unskilled auditors that can easily be bribed.