Ann: Corporate and Audit Update, page-39

Yep, it has been reported that a local chinese audit is worthless. Bigger problem not mentioned in 'the china hustle' is that when a Chinese company starts having trouble with it's foreign listing, the chairman/major chinese shareholder just transfers the cash and assets out of the public company (typically to a family member) with the stroke of a pen and leaves the public company shareholders holding their shares and the liabilities. the appointed liquidators is the first to discover this and nobody in Aus can do diddly about it and it seems the chinese authorities are complicit as no action has been taken in prior instances.