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Lax Accounting Standards in China

Posted: Sat Dec 08, 2012 8:19 pm
by Number Six
http://www.nytimes.com/2012/12/07/busin ... Nj1T9e9gUw

For me the take away line in this article by Floyd Norris came at the end:

"One can only imagine the conversations of Chinese corporate officials as they discuss how gullible Americans turned out to be."

Re: Lax Accounting Standards in China

Posted: Sat Dec 08, 2012 11:44 pm
by Arthur Rubin
Number Six wrote:http://www.nytimes.com/2012/12/07/business/sorting-out-a-chinese-puzzle-in-auditing.html?_r=0&adxnnl=1&ref=floydnorris&adxnnlx=1354994207-6SMWXLovPmOuNj1T9e9gUw

For me the take away line in this article by Floyd Norris came at the end:

"One can only imagine the conversations of Chinese corporate officials as they discuss how gullible Americans turned out to be."
There's a simple solution. Make US audited statements subject to export controls, allowing only paper-audited statements to be given to Chinese investors.

However, I seem to recall a case in the US where essentially all the assets of a company were trade secrets, which turned out not to exist. I could be wrong, though.