Pou Sheng Fires its CFO Following Discovery of Incorrect Sales Records

Pou Sheng International (Holdings) Limited has announced it has terminated the employment of its Chief Financial Officer, Chen Kuo-Lung, due to accounting anomalies.

During the course of the preparation of the annual results for the year ended 31 December 2016 and the internal review of the accounting records of the company, the company discovered on 6 January 2017 certain incorrect sales records in the month of December 2016, which could potentially lead to recognition of revenue for sales transactions that did not take place before end of year 2016.

The amount of purported sales under the incident is not significant when compared to the level of revenue of the company. The Board considers that the incident reveals weakness over the financial controls of the company. The Board believes that the incident would not materially affect any financial information already published by the company prior to the date of this announcement.

Furthermore, the company has immediately engaged Deloitte Touche Tohmatsu, to carry out a thorough check on the accounting records of the company.

The company will publish a further announcement if the check of the accounting records reveals any further issues. The Board and the audit committee of the Company will also work closely with Deloitte to ensure that the audit work concerning the accounts of the Group for the year ended 31 December 2016 will be carried out cautiously in light of the Incident. 

 

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