PEZ a warning to China investors., page-3

There are definitely risks with investing in China. I think the XPD shareholders are all aware of these.

The accounts of companies are signed by the Directors and the Auditors to confirm that they are fair and accurate and follow the accounting standards. The shareholders rely on both the directors and auditors

If there is any indication of fraud the auditors will not sign the financial statements

Grant Thornton the company auditors have some additional pressures with the FY 17 audit due to the various compliance issues and delays with the year end process

An area I struggle to understand is how an Australian 2nd tier accounting firm audits a Chinese based company effectively. How effective will the audit be. There are some obvious challenges with language,cultural and time zone differences.

Confirming the Chinese bank balances and Directors loan accounts (if any). will be an important audit item this year.

Hopefully we will get these financial statements soon.