Learnt quite some new stuff here. To cut the story short, SGX found that while China Kunda group auditor is Ernst and Young, it uses different auditors for their China subsidiaries. China Kunda responds that while E&Y audits everything, including the subsidiaries, they have additional auditors to audit the subsidiaries local audit requirements.
Given benefits of doubt to everyone here, I infer that:
1) China regulation requires local auditor
2) SGX does not know that there is such a local audit requirement, otherwise they would not ask (all other China companies listed here never report this?)
3) China Kunda thinks that SGX already know, that's why they do not elaborate in the annual report
If you have the answers, please let me know.
For shareholders, one thing learnt is that, 2 auditors are paid to do the same job. That either gives you double comfort or double heartache.
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_120FE94E2A386F8C482575F9003C3876/$file/CHINAKUNDA_Responses_to_SGX-ST_Query.pdf?openelement
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