Thursday, June 3, 2010

China Organic Agriculture (CNOA) what could be the reason?

I sold my position.

What could be the reason that the public certified accountants of ACSB don't want to do audits anymore at China Organic Agriculture (CNOA)?

By letter dated June 1, 2010, Acqavella, Chiarelli, Shuster, Berkower & Co., LLP advised China Organic Agriculture, Inc. (the "Company") of its resignation as the Company’s independent registered public accounting firm. Acqavella, Chiarelli, Shuster, Berkower & Co., LLP had served as the Company's independent registered public accounting firm since June 30, 2009.

The report of Acqavella, Chiarelli, Shuster, Berkower & Co., LLP on the Company's financial statements for the fiscal year ended December 31, 2009 did not contain an adverse opinion, a disclaimer of opinion or any qualifications or modifications related to uncertainty, limitation of audit scope or application of accounting principles. During the fiscal year ended December 31, 2009 and the period from January 1, 2010 to the date of resignation, the Company did not have any disagreements (within the meaning of Instruction 4 of Item 304 of Regulation S-K) with Acqavella, Chiarelli, Shuster, Berkower & Co., LLP as to any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure and there have been no reportable events (as defined in Item 304 of Regulation S-K).

A letter of Acqavella, Chiarelli, Shuster, Berkower & Co., LLP addressed to the Securities and Exchange Commission is included as Exhibit 16.1 to this report on Form 8-K. Such letter states that such firm agrees with the statements made by the Company in this Item 4.01 as they refer to such firm.

The Company is seeking a new independent registered public accounting firm to audit its consolidated financial statements for the fiscal year ending December 31, 2010.

Item 9.01 Financial Statements and Exhibits

Exhibit 16.1 Letter dated June 1, 2010 from Acqavella, Chiarelli, Shuster, Berkower & Co., LLP.

8-K filing

http://www.sec.gov/Archives/edgar/data/1337826/000143774910001785/coa_8k-060310.htm

2 comments:

  1. dear dutch trader

    is it common for companies to change accountants. i have 3k at 0.69. getting stressed..pls suggest solutions

    ReplyDelete
  2. I don't know what the reason can be, but I took some money from the table because I think there are better opportunities. In my opinion it was clearly a red flag that the auditor resigned.

    Because I don't know the real reason, I can't give you an advise. If you are a believer you can make your own decision based on fundamentals and not on my emotion.

    ReplyDelete