Accounting irregularities are detected in two S-chip companies in Singapore, namely: China Hongxing Sport and Hongwei Technologies. Coincidentally, the financial auditor of these two companies is Ernst & Young LLP.It's noted that the auditor is facing difficulty in ascertaining certain assets, liabilites, and expenses. Details are as below:
Hongwei Technologies- the auditor is facing difficulty in confirming the cash and bank balances
China Hongxing- the auditor noted irregularities in the cash and bank balances, accounts receivables, accounts payables, and other expenses
The board of directors have engaged independent investigator in resolving the issues highlighted by Ernst & Young LLP.