SMOL: Trust But Verify??? (2)

Read? SMOL: Trust But Verify???

Read? Hin Leong forged documents to mislead banks, has 'no reasonable prospect of being restructured on its own': PwC


Evidence further suggests that Hin Leong may have fabricated fictitious derivatives gains and trading profits to conceal accumulated derivatives trading losses of about US$808 million over the past 10 years. “On this assumption, it follows that the cumulative overstatement of profit in the company’s financial statements in the past decade amounts to US$2.1 billion,” PWC wrote.

Hin Leong was audited by Deloitte & Touche. Deloitte said in April that it stands behind the quality of its work. Hin Leong is also under investigation by the police.

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Hin Leong's case reminded Uncle8888 of late Guru's wise words! 

Respect!

This was how late Guru would counter back and Uncle8888 learned something from him.

Trust; but You can't really verify!

Late Guru's counter argument.

We trust audited statements from the Big Four. Right?

But it doesn't mean auditors have verified there is no uncovered fakes or fraud! We have seen some audited and listed companies have been faking or fraud so well until one day they were uncovered and start failing. 

Trust is far more important than audited statements?

Have faith and trust your Gurus!