Management realizes that oversight of Chinese accounting firms has been an issue for some U.S.-listed companies based in China, and that recent accounting scandals in Asia have eroded investor trust.
We emphasize that unlike many companies, we must comply with three sets of regulations. We are a Taiwan-based company, and as such, are subject to Taiwanese laws and regulation. In addition, we are a Singapore registered company subject to an annual audit in conformity with Singapore laws. Finally, we are subject to SEC/Public Company Oversight Board (PCAOB) regulations.
GigaMedia's shareholders have approved the engagement of global leader KPMG as GigaMedia’s auditors. KPMG has offices in Taiwan, which will facilitate rapid, efficient collaboration with GigaMedia. The change of auditors to KPMG is part of new management’s initiatives to enhance shareholder value. KPMG is registered with the PCAOB and is subject to periodic inspections by the PCAOB. Our annual audit is performed in compliance with the rules and regulations of the PCAOB, and we have cooperated fully with normal periodic information requests from the U.S. Securities and Exchange Commission (SEC) regarding our SEC filings.