Yeh rode Procomp hype to firm's fall

"Procomp's scandal could be just the tip of an iceberg," Chen said. "We just don't know which company will be the next one."

Procomp's collapse has caused a heavy sell-off of small-cap shares as investors feared that their money would be lost. Chen warned investors to watch small-cap firms to see if they regularly change their financial executives and accounting auditors, he warned.

In March, Procomp hired Deloitte & Touche (勤業眾信) to succeed its long-term accounting partner KPMG Certified Public Accountants (安侯會計師事務所). Before that, the company replaced one of two accountants who were in charge of Procomp at KPMG.

Investors should also avoid buying shares of companies with high liabilities, Chen said, as in Pro-comp's case the company's liability ratio grew to 55.5 percent.