Spongetech Delivery Systems, Inc. (fka SPNGQ)

[Christy from Google]

Dear Loanranger

D&D had to observe inventory, whether he actually did it or hired another CPA, I don't know. If he didn't complete this audit procedure, then it would be considered an audit "scope limitation", and would need to be disclosed in his opinion letter. Nothing was disclosed in the FY 2008 audit opinion, therefore this audit procedure was done.

Not only are the depositions fact, the SEC has all the related audit workpapers. Reilly has them too.

D&D knew in advance. He didn't try to fight it at the end. This PCAOB review lasted years. He got caught lying and adjusting workpapers, after the fact, in late 2008. He was caught and they nailed him. And he knew it well in advance, at least 60 days. Maybe 90. The US agencies will always give you one last chance to make a statement or submitt evidence, before the final verdict. The "Wells" is a perfect exaqmple of this. The IRS has the same procedure, except it's a 2 part process. State CPA socities the same thing. Its SOP.

Somebody had a talk with Mosky. Maybe not Siegal, but someone did about the "retirement vs revocation" lie. A very serious admission, and soon thereafter, the formal SEC investigation started. Shazammmmmmmm