A-Power Appoints Simon & Edward, LLP As Its Independent Registered Public Accounting Firm; BDO Daejoo LLC Was Unable To Accept The Engagement
SHENYANG, China and NEW YORK, Oct. 4, 2011 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq and OTC Pink Limited Information: APWR, "A-Power" or the "Company"), a leading provider of distributed power generation systems in China and a manufacturer of wind turbines, announced today that BDO Daejoo LLC ("BDO Daejoo"), which previously had executed an engagement letter pursuant to which it had agreed to act as A-Power's independent auditor, rescinded its acceptance and engagement. According to BDO Daejoo, it was required to rescind its acceptance because of internal client acceptance issues with BDO International, a global network of accounting firms of which BDO Daejoo is a member firm. BDO Daejoo had not started any audit work and no fees were paid to BDO Daejoo by A-Power.
As a result, the Audit Committee of A-Power's Board of Directors has approved the engagement of Simon & Edward, LLP as its independent registered public accounting firm to audit the Company's financial statements for the year ended December 31, 2010. The appointment was made on September 30, 2011, which is also the effective date of the engagement. Simon & Edward, LLP has completed its client acceptance process and accepted the engagement.
Simon & Edward, LLP is currently registered with the Public Company Accounting and Oversight Board. The selection of Simon & Edward, LLP was based on the firm's extensive experience auditing public companies in the United States and China. The firm is a U.S. based accounting firm with its offices in City of Industry, California and Beijing, China. The firm's partners include individuals with significant experience with S.E.C. reporting requirements and S.E.C. audits.
The engagement of Simon & Edward, LLP follows the resignation of the Company's former independent registered public accounting firm, MSCM LLP, effective June 26, 2011. As previously reported, MSCM LLP stated that it had resigned because the Company had not retained a qualified independent forensic accounting firm to evaluate certain business transactions that MSCM stated was necessary for MSCM to complete its audit of the Company's financial statements for the year ended December 31, 2010 on a timely basis.MSCM's audit reports on A-Power's financial statements as of and for the years ended December 31, 2009 and 2008 did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. During those periods, there were no disagreements between the Company and MSCM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the satisfaction of MSCM, would have caused MSCM to make reference to the subject matter of the disagreement in connection with its report. About A-Power A-Power Energy Generation Systems, Ltd. ("A-Power"), through its China-based operating subsidiaries, is a leading provider of distributed power generation systems in China and is expanding into the production of alternative power generation systems. Focusing on energy-efficient and environmentally friendly distributed power generation projects of 25 to 400 megawatts, A-Power also operates one of the largest wind turbine manufacturing facilities in China. A-Power acquired Evatech Co. Ltd., a designer and manufacturer of industrial equipment for amorphous-silicon photovoltaic panels, in January 2010. In addition to the establishment of strategic relationships with some of the world's leading wind energy design and engineering companies, A-Power has formed joint research programs with Tsinghua University and the China Academy of Sciences to develop and commercialize other renewable energy technologies.
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