What is the purpose of Deloitte
1) Can anyone explain the value of hiring a Top 4 auditor if they are on the payroll for a year and don't know what bank cash balances are?
2) Has anyone officially spoken to the amount of $200 million that was supposedly in the banks? Has the word "missing" or similar term been used other than "irregularities"?
This is obviously an extremely strange and unique stock situation and I am not one of those advocating an imminent short squeeze. However, I am disappointed at the disparity of many longs who have given up when so many important questions remained unanswered. The presence of the cash, IF bank statements reflect growing monthly profit adding to the cash balance, would indicate a profitable company. Embezzlement would reduce the cash pile but not invalidate the company. Upon discovery, it would cause perhaps multiple resignations.
If the cash is not there, what was Deloitte doing for a year to just notice such a vital accounting issue as "Hey, there's no 200 million dollars." This is intended as a serious question.
Embezzlement still means a severely damaged stock. Fraud, however means a decimated stock. To me, the resignations and Deloittes wording points to misappropriation of funds rather than non-existence of funds. There is a vast difference in the end result of those two scenarios.
