Spongetech Delivery Systems Inc (fka SPNGQ)

[harvard homeboy]

Here's a prediction: On Monday Aug 31, after the close, Spongetech will file a NT-10K stating that the company is unable to file its 10-K in a timely mannner due to a change in auditors.

The real reason why should be transparently obvious, but I'll state it nonetheless. Spongetech is awash in a sea of red ink due to massive writeoffs of its Accounts Receivable balances and they don't want you to know about it.

That's the real reason for the change in auditors to begin with.

And since Robison only began working for Spongetech as of July 21, there was never any way they could have completed the audit in time to begin with given the compliance burden associated with Sarbanes Oxley and the flaky accounting practices used by Drakeford & Drakeford which they had to use as a starting point.

And with respect to your other observations, all I can say is that I hate to inject a modicum of reality into this discussion, but who do you think did the auditing for Enron?

Robison Hill? Drakeford & Drakeford?

What about MCI/Worldcom? Who did their auditing? Or, just to take a few examples from the recent past, who did the auditing for Lehman Brothers, Bear Stearns, AIG, Washington Mutual and all the other financial entities that have either imploded or been forced into shotgun weddings in the last 12 months?

But believe who and what you wish.