Electronic Game Card, Inc (fka EGMIQ)

[wmthecommoner]

I used to do auditing so I find it difficult that an auditor would not be able to confirm cash. Hell, that is the part of an audit that is so simple, they let the young guys cut their teeth on it. Confirmation of balances is simple. Reviewing the reconciliations is simple. In an era where information / confirmations can be faxed, emailed, basically at the speed of light.

You confirm cash, the balances and then review the transactions/reconciliations to match. NOW you could have an irregularity such as the Account is in the name of a Company that does not technically match the name of the subsidiary. That can be solved with paperwork to clarify. So until they define the scope and materiality of the issue, which should be easy, I am still baffled Unless they find fraud, ie balances that are not there, they are basically saying they can not confirm the amounts. Confusing to me.

YOU may not have a write down, however, the issues about asset valuations seems NOW to be contained to this one item and not other assets.