A-Power Energy Generation Systems Ltd., a provider of distributed-generation systems and a manufacturer of wind turbines, has announced that its independent auditor, MSCM LLP, has resigned.
As a result, the company's annual report on Form 20-F will be delayed beyond June 30, the date the filing is due at the Securities and Exchange Commission (SEC).
In a letter to the company, MSCM stated that it had resigned because A-Power had not retained a qualified independent forensic accounting firm to evaluate certain business transactions that MSCM said was necessary in order for MSCM to complete its audit of the company's financial statements for the year ended Dec. 31, 2010, on a timely basis.
In light of MSCM's withdrawal, A-Power and members of the audit committee of the board of directors will be meeting with other independent auditing firms. The company will announce its new independent auditor after the audit committee has selected a firm and an audit engagement contract has been entered into between the company and that firm.