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  "docSlug": "5d07cd85d779",
  "documentTitle": "ANTA Sports Products Limited (2020.HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-07-15 00:00:00",
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  "notes": "The slide uses a 'fraud-exposure' framework by contrasting the auditor's stated procedures with the reality of the company's control over its distributors.",
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      "kind": "callout",
      "text": "The bottom line is that audits have done nothing to ensure that ANTA's distributors are independent.",
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      "kind": "paragraph",
      "text": "enforcement is so lacking. In reality, audits of PRC-based issuers provide close to zero assurance against fraud, and actually increase fraud risks because they provide investors with a false sense of security.",
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      "kind": "quote",
      "text": "Management reiterated that its distributors are independent, as each has its own management team that makes independent business decisions and its own financial and human resources management functions. This is also verified by KPMG, who has been auditing Anta and performing on-the-ground assessments of the distributors since 2004. — ANTA Management",
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      "text": "6 Pp. 90-91.",
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      "text": "Revenue recognition: Sales to distributors. The key audit matter vs How the matter was addressed in our audit.",
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