Sulja Bros. Building Supplies, Ltd (SLJB)

[gdb81]

Ok here's what I don't get, and I welcome clarification from anyone here.

PV says that he had AFs in his hand on the 15th, and if he had released them he would have gone to jail, though the stock "would have hit $1". Ignore everything else for a moment, including the likely fact that he never had anything even close to audited financials.

From his blog comment: "The financials were simply not acceptable and were not representative of the truth as I knew it. If I published them then I would be a thief and lier. When they are correct they will be published. It is really that simple. I would be knowingly misrepresenting the truth if I aloud the afs to be published."

My question is, how on earth do you wind up with a set of AFs complete with signed opinion letter from the auditors that misrepresents the truth? The whole point of an audit is to provide a reasonable basis of assurance that the financials are presented in line with accounting standards and reflect the truth.

So how do you go through an audit and wind up with audited financials from a reuptable firm that don't represent the truth?

I can only come up with two scenarios that explain this odd alibi of PV's, they lied and misrepresented the truth to the auditors, or they forged the audit opinion letter.