ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

Something is very fishy here. The reason for the delayed filings is a "scheduling conflict?" So its the auditors fault now? Really? A statement from the auditors confirming this would be nice...........but i guess we just have to take Bobby's word for it.

That makes zero sense, that somehow the auditor just got mixed up and lost SCRC's paperwork? No release would have been better than this bizarre and highly suspicious release.

I wouldn't necessarily say that it is "fishy" or "suspicious". But the weasel talk certainly doesn't help. And by weasel talk, I am referring to SCRC's wording which would understandably lead most readers to believe just what you just said -- that the delayed filings have all been because SCRC has been sitting on its thumbs this whole time waiting on the auditors. And that is simply not the case.

Take a closer look at the specific language and wording used in the PR (relevant excerpts pasted below):

TYSONS CORNER, Va., June 10, 2015 (GLOBE NEWSWIRE) -- ScripsAmerica Inc. (OTCBB:SCRC) today announced today that the final phase of the auditing process for its 10K for 2014 and 10Q for Q1 2015 is scheduled to commence on June 22, 2015.

According to management, a scheduling conflict by the Company's auditors is the primary reason for the most recent delay of its filings

Notice the words "most recent delay"? This means that SCRC is simply throwing the auditors under the bus for what is occurring NOW. It speaks NOTHING of the cause(s) of all the previous delays which are the source of the problem to begin with.

It is a 99.9% certainty that the auditors found one or both of the following during what was initially scheduled to be a routine audit back during the JAN-MAR periods:

(1)
Violations of US GAAP, which would require adjustments, re-classifications, and potentially re-statements.

(2)
Unsatisfactory documentation by some combination of SCRC, its subs/related parties, and 3rd parties w/which the auditors were attempting to obtain confirmations and/or other corroborating evidence from in order to substantiate SCRC's assertions.

The above findings are what typically result in alternative and supplemental audit procedures needing to be performed. And these take time, not only to perform, but to even schedule. Professional services firms such as CPA firms that provide audit and attest services typically have their year scheduled out already with known engagements that recur for their ongoing clients (i.e. they schedule out in advance time for their auditors to go to each of their clients to perfom the year-end audit as well as each quarterly audit). So what happens when unexpected findings arise in an audit such as SCRC? Delays such as what we are seeing now, where the auditors most likely needed to push back the start of this "final phase" due to scheduling conflicts where it has already committed itself to perform quarterly audits/reviews for other clients. That's simply the way it works.


And folks should note the first bolded/underlined excerpt above, where it simply states that the final phase of the audit is scheduled to COMMENCE on 6/22/15. COMMENCE. Not conclude, but simply COMMENCE. We have no idea of the magnitude or duration of these final procedures, as well as how soon thereafter the 10K/10Q's will be in a condition to be filed.