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text by | hyxin

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on june 14, 2024, weth, which was transferred from the otc market to the nasdaq, submitted a supplementary financial report to the sec for the first quarter of 2024. the disclosure document indicates that bf borgers cpa pc, the auditing agency of weth since 2020, was permanently closed by the sec on may 3, 2024. the reason behind this is that the auditor bf borgers has long-term systematic fraud, issued fraudulent audit reports and other serious violations, which led to it no longer being recognized by the sec. after the incident, weth fired him on may 9, 2024, but the bf borgers incident still had an unignorable impact on the company in the capital market. at the same time, weth also decided to re-audit the company's 2023 annual report. so for chinese companies, what is the core role of submitting financial audit reports when listing in the united states? why can't its impact be ignored? in this article, huayi xin will briefly analyze and answer relevant questions about financial audit reports.