Music Licensing Inc (SONG)

[QTRADERQ]

The auditor CONFIRMED A/R of $323M was collectible when he took out the 'GOING CONCERN' paragraph from his 3/23/22 Audit Report for Y/E December 31, 2020 and 2021.

AUDIT REPORT dated 3/23/22 - No Going Concern Paragraph
https://www.sec.gov/Archives/edgar/data/1831925/000121390022019488/ea158372ex5-2_promusic.htm#a_001

Auditors must comply with Generally Accepted Accounting Principles (GAAP). Since the auditor did not book any 'Allowance for Doubtful Accounts' in either audit year. It is a logical conclusion that in the auditors professional judgement all of the $323M in Accounts Receivable was collectible in the future.

In addition, as part of the auditors audit testing of Accounts Receivable, he would have mailed A/R Confirmations to the company's who owed the $323M to Pro Music Rights. If any of these customers disputed their A/R balance, then the auditor would be required by GAAP Rules to reduce the $323M in Accounts receivable to a more conservative number (the GAAP Principle of Conservatism). This was NOT done the auditor. Therefore, it is a logical conclusion that all of $323M in Accounts Receivables is collectible.

Note: Auditors can be sued for malpractice and they DO NOT just casually drop the 'Going Concern' paragraph unless they have verified the accuracy and collectability of the $323M in Accounts Receivable.

But in Pro Music Rights audits, that's exactly what the auditor did. POOF! The Going Concern paragraph was taken out... end of story!

JMO