the PoR

is a data structure that shows binance customers balance is accounted for and combines to a total
also binance shows they have coin control of an alotment of coins that meet and exceed that total accounted total

..
the objections are that some beleive that it does not include the companies own private assets and liabilities.

but that is a separate account report with a separate report.

also objections about binance not revealing all its corporate entities.
again this is separate to the customer accounts/PoR stuff


the fear becomes that some hidden parent company could claim ownership of the coin control of all assets. whereby "binance" as a daughter/sister company could be sent into some legal system of administration where it locks customers from redemptions. and prevents payouts while then not honoring the use of the coin control assets to be used on those customer due to some hidden contract under the parent company that customers are not aware of


..
its a simply family 'chore board' where having 4 stars on a chore board = 1 chocolate bar reward at end of the week
where they can clearly say the kids have a total of 8 stars= 2 chocolate awards
and the big sister can show 2 chocolate bars in the fridge waiting for the end of the week.

however mommy can be malnourished(in debt) and may want to take the chocolate out the fridge to eat for herself to make her heathy. leaving the kids then under nourished. and thats the fear.

the fear that if kids complain they didnt get their chocolate and its found out the chocolate is not in the fridge. big sister(binance) as kid babysitter and the family fridge gets locked up with the kid in social services disputes(regulators)
but the parent is not disclosed/ put into a social services investigation.  and is instead sunning it up on a beach with a full tummy

I think if binance is found culprit after scrutinize this will lead to very worse outcome for cryptocurrency and it will drop the price. Binance is big and popular with trust of investors not minding it is centralize exchange so people won't have any more trust with exchange and they like to keep the coins within them and that will create dull moment for cryptocurrency. Exchange transaction help the trader alot and if binance go down, it will affect every body.

After what happened to the ftx platform, confidence in all platforms is declining in succession.  An emerging market that is barely more than ten years old, it is only natural that management systems are not appropriate for it.  Unfortunately, users are affected by the reputation of the provider, and when the options are limited, the pressure is less.

I won't jump into conclusion until everything is cleared and all accusation has valid proof.  We cannot trust media nowadays since most of them are created or paid with malicious intent.  I believe this news is possible a derailing tactics so that attention of people will be shifted on Binance issue rather than the current investigation of FTX. 

Those who said about any problem or issue on Binance should provide a valid proof, if there is none then all of these negative thoughts are just rumors.  Auditor refusing to vouch for Binance audit probably has deeper reason why they are not doing it.

The problem with most of these exchanges is that their financial transactions most times are shredded in secrecy. This shouldn't be the standard for exchanges because customers deserve to know where and how their money is used. That was how FTX claimed that they had their customers at heart. Just like FTX is might be possible that Changpeng Zhao is running Binance like his personal business.

The most important factor is financial business is trust. And trust is build when clients are sure that their funds are in safe hands. And a transparent audit report is very important to boast the confidence customers have in your business.

I am desperately hoping that this news is just another media stunt. This is because Binance is a big player in the cryptocurrency industry that any financial disruption would really affect the market negatively. There have been reports that some exchanges are manipulating their financial dealing to outsmart competitors and gain customer's trust. But auditors should be able to vouch for a company's finance dealings if they are clean, standard and  accurate.       
 

comparing the user agreements and policies of for instance
binance vs greyscale

customer "bans"
binance when banning a customer still allows a customer to log in, but features disabled like trading. the customer is given time to withdraw value close account and leave

greyscale says they can decline all access and deny use of all of their site for customers that are banned without notice or reason

custody of funds
binance shows bitcoin addresses of bitcoin funds that total the same total of customers balance

greyscale, tells customer it does not hold custody of funds, its locked in coinbase "vaults" and coinbase has a security policy to not disclose. coinbase is not regulated by SEC or CFTC

im more concerned of the contagion of the DCG portfolio of exchanges which includes coinbase and greyscale, oh and until recently(after collapse) FTX

Weird audit...
Let me explain my idea. An Audit Specialist is a person who has an excellent understanding of the area he is auditing. The result of the audit, in this case, is to confirm or deny the presence of reserves. Reserves - they either exist or not. An audit based on the results can say: I analyzed the transactions: for such and such a period, I recorded transactions that arrived in cold wallets. The amount of income, like this, in such and such cryptocurrencies ... The balance at the time of the audit is like this. The withdrawal of funds amounted to such a sum. Dibit credit converges, does not converge, the discrepancy is like this - an explanation of the additional expense - like this (these are all conventions, purely for example).

But if he cannot confirm or deny, this means that the person could not conduct a normal audit and obtain the necessary data. That's why I can't confirm or deny.

Aside from this audit failure, there's another thing that's been with Binance and it came recently from Reuters.

~ Exclusive: U.S. Justice Dept is split over charging Binance as crypto world falters

This is a long read and too many details that are there but people right now are waiting what will be the response of CZ according to this news that Reuters has published.

Binance has positioned themselves in the market and have a major player in cryptocurrency. I fear the extent of damage this news can generate against cryptocurrency. People are still managing the situation and nursing the wounds that FTX and Sam inflicted on the market, a problem with binance may finally become the end of some peoples believe in cryptocurrency. It will create panic that will surely have a show on the price of bitcoin making it to most likely drop lower.