Friday, August 03, 2012

And Now Silver Birds Sues Its Extrernal Auditors

I am really pleased to see what's happening. The fraud in Silver Bird is simply massive and disgusting ( see The Said 12 Accounting Irregularities Found At Silver Bird! ) and Bursa Malaysia, too should be more active in cracking down all these book cookers! Too see the current board of Silver Bird slapping lawsuits againts its former directors ( see Silver Bird Sues Its Former Directors ) is something other companies should consider if ever another fraud case should happen. File criminal chrages against them crooks and slap them silly with mega lawsuits. Ensure that white collar crimes does not pay!

Today, on SunDaily Business:

Woah! Yet another lawsuit. Intersting!

  • Crowe Horwath denies Silver Bird’s claims
    Posted on 2 August 2012 - 11:20pm
    Last updated on 3 August 2012 - 02:06am

    PETALING JAYA (Aug 2, 2012): Crowe Horwath has "categorically denied" claims filed in a lawsuit by Silver Bird Group Bhd that it was negligent and had breached a duty of care as the group's external auditor for failure to discover and/or detect the financial irregularities in the group.

    Crowe Horwath was the external auditor of Silver Bird when news of the financial irregularities surfaced in February last year. It had then refused to provide a basis for an audit opinion to the bread maker's financial report for the year ended Oct 31, 2011.

    "Crowe Horwath categorically denies these allegations and firmly believes that it had discharged its duties and responsibilities as the auditors of Silver Bird Group in accordance with approved auditing standards. According to the engagement partner, Onn Kien Hoe, the financial irregularities were in fact discovered by Crowe Horwath and were immediately reported by us to the audit committee and board of directors of Silver Bird. We have also proactively informed the relevant authorities thereafter," it said in a statement today.

    Silver Bird and its subsidiaries, Stanson Marketing Sdn Bhd and Standard Confectionery Sdn Bhd, had on Wednesday filed a suit against Crowe Horwath and nine others alleging, among others, negligence and breach of duty of care.

    "We believe that the suit by Silver Bird Group is frivolous in nature and without basis. We strongly believe that we have fully discharged our duties professionally and will vigorously defend our position in court," said Crowe Horwath.


panaceaasia said...

External auditors are too close to the senior management of companies. Hopefully something good will come out of this.

Moolah said...

Hope so too! Far too many thinks that the stock market is an atm machine for them to do anything they like.

Moolah said...



NoaH said...

all these irregularities happened under the external auditor's watch....yes?

It takes more than one cold day for the river to freeze three feet deep;

I don't believe these massive account fraud can occur within months or 1 year...
It must been happening for at least more than 1 year.

so why they sign the previous year audit financial report and give unqualified opinion?