Understanding China, One Blog at a Time

An American in China

Lies, SOE’s, Big Four Accountants and BrewMan

Posted by w_thames_the_d on June 5, 2012

Here is a nice comment by BrewMan. In essence it shows that the big four is allegedly complicit in fibbing about the financial records of China’s big SOE’s. Interestingly enough, the thieves who control China are mandating that the big four choose Chinese nationals to head their operations in the next five years…wtf? Yeah the fucking chicoms want to ensure that the thieving does not stop, after all, there is a ton of KTV cooz they have to support. Excerpt Big 4 “The Chinese government has ordered the world’s Big Four accounting firms to appoint Chinese citizens to head their mainland operations within five years, “- link http://articles.latimes.com/2012/may/10/business/la-fi-china-auditing-rules-20120511

Now a bit from the BrewMan!

“China’s full of shit but is constipated; let’s drive an A-bomb suppository up her gelatin butt, and “make it rain” as if a Chinese dam burst, and let a biblical fury of chemical- and waste-doused water purge the masses.
Uh oh, looks the Big Fours’ role model is Aurthur Andersen, the former accounting giant who smudged Enron’s erroneous numbers. Really… who woulda a guessed that from the SOEs’ best friends?
“New revelations of extensive financial and accounting irregularities at state enterprises directly administered by the Chinese central government have placed the world’s top four multinational public accounting and auditing companies under new criticism and scrutiny.
Many critics have questioned alleged serious breaches of ethical and professional integrity by international auditing firms, which they say failed to fulfill their responsibility as independent and objective auditors. Adding to the suspicion is the fact that these firms collect staggering annual service fees from China’s state-owned corporations. Critics blame auditors for insufficient and substandard checks of government-run mammoths, and for condoning their irregularities.
Problems with the financial books of state-owned corporate giants were identified by the National Audit Office of China. The problematic data, however, had cleared examinations by the “big four” auditors — Deloitte Touche Tohmatsu, Ernst & Young, KPMG and PriceWaterhouseCoopers (PwC) — that dominate the Chinese market. Irregularities were uncovered by the audit office at firms like China National Petroleum Corporation, Sinopec, China Southern Power Grid and SinoSteel.
Major accounting issues included misusing and misallocating corporate funds, inflating and misstating sales and earnings, offering excessive bonuses and tax evasion. Auditors even committed rudimentary errors such as failing to consolidate business groups’ financial statements and not verifying important figures as basic as revenues, according to the Beijing Business Today newspaper.
Based on final audits by the national office, China’s two oil giants underreported profits by more than 2.8 billion yuan (US$440 million). SinoSteel was found to have inflated sales revenue by nearly 2 billion yuan (US$314 million), while Baosteel Group padded profits by 1.615 billion yuan (US$253 million) from 1999 to 2010, including an inflated amount of 1.1 billion yuan (US$172 million) for 2010 alone.”
Crap, crap, crap: China Crap Watch does what the King does for death, Margaret Mak is for envioro, and Brewskie is for Playdoh bridges.
Leeks sprayed with copper sulfate:

One Response to “Lies, SOE’s, Big Four Accountants and BrewMan”

  1. Brewskie said

    Damn, you’re fast! I just finished posting some stuff under my infrastructure column, and wuz gonna let you know, then you post this.

    Yeah, China, when it comes to Brewske it’s drought and flood: you had a few days off and now… a biblical flood of holy water’s pouring through your busted dams, and is going to incinerate your unholy, demonic flesh like fluorosulphuric acid! At least it cooks better than the way you make your goddamn duck (goose?)!

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