Sycamore Entertainment Group Inc (SEGI)

[Powercat23]

I agree - this audit was going to take some time. For a company like this that has never been audited before, you don't just walk in there and start auditing the numbers. You first have to identify the internal controls they have in place and then identify the significant ones that can materially affect the financial reporting. For a company like SEGI, I wouldn't be surprised if very few of their controls were identified and/or actually working. Once those controls are identified, the auditors then test them to see if they were working in order to get an idea of how much they can rely on the numbers in the financials that management provided. If they feel the controls are lacking and cannot be relied upon, that means they have to do a lot more testing over those numbers, which takes a lot of time. I have a feeling that's where SEGI is.

Plus, they have to have a starting point, which I doubt is 2013. So now you're not just auditing 2013, but probably 2012 and maybe 2011 as well. So digging through detail from those years adds additional work. And then finally, you have to go through the footnotes, tie out all the numbers in there and possibly add additional discolusres with additional amounts in order to conform to GAAP reporting.

So all told, for a public company that's never been audited, I would expect this to take a couple months. Now, in future years, assuming they do a good job of recordkeeping and keeping their internal controls in place, I could see it only taking a couple weeks to complete the audit. That's all IMHO, of course.