On4 Communications Inc (ONCI)

[mrw21j]

Forgive me if I am wrong, but isn't the function of an audit to provide an objective view of the facts of financial standing of a company?

A few questions I have then:

First, why is the Delaware debt even relevant to the audit? Couldn't it simply be listed, itemized and moved on from there?

Second, how could he not have known (or checked upon taking helm as CEO) of previous outstanding debts/liens?

I want to give the benefit of doubt to the process. My understanding, though limited, is however providing just a little more doubt than benefit at this point.

Further, wouldn't it be prudent to post the Delaware debt figure regardless of "new negotiated price" so that can be accounted for in current financial statement?