Carnegie Development Inc. (CDJM)

[BigBuy57]

Perhaps there's a misunderstanding about how audits work. By analogy, if someone is driving from LA to San Francisco they have to travel through all points in between.

The same thing applies for audits. There has to be an initial starting point and ending point. In the case of ESCU, the starting point was 2006. That's because of the auditor's need to understand the nature and impact of key transactions dating back to that time that might have a CARRYOVER EFFECT on the final 2014 audited financials.

To determiine this the auditor reviewed ALL securities and financial transactions beginning in 2006 going through 2007, 2008, 2009, 2010, 2011, 2012, and 2013 culminating in 2014.

In short, there is NO WAY the auditor can come up with valid, confirmed financials through 2014 without looking at all of the ANTECEDENT FACTORS. The 2014 audit is the sum total of everything going before it.

So to say that there was not an audit of the years 2009, 2010 and 2011 is misleading. The fact is, ESCU does not need to spend the money for an auditor letter for that period, since the SEC only requires audits for 3 prior years. If they need to get a letter, it will not cost much because all of the heavy lifting has been done.

As for the implication that Kimmons "pulled something over on everyone" during that period there is NOTHING to substantiate the allegation in the audit.