MedLink International (MLKNA)

[beachsideeddy2]

got the feeling the last pre-buyout auditing company wasn't know for harshness and demanding exacting detail.

Perhaps Medlink cannot stand up to a rigorous audit. Maybe it never could. Could have been the reason management chose the bozos they did:

Inspection of Jewett, Schwartz, Wolfe & Associates

Those deficiencies were –
(1) the failure, in two audits, to perform audit procedures to determine
whether revenue was recorded properly;
(2) the failure to perform adequate audit procedures to determine whether a
debt restructuring transaction was accounted for properly;
(3) the failure to perform audit procedures to determine whether a related
party transaction was accounted for properly;
(4) the failure to perform an adequate evaluation to determine whether there
was substantial doubt regarding the issuer's ability to continue as a going
concern;
(5) the failure to perform adequate audit procedures to test the valuation of
goodwill;
(6) the failure to perform audit procedures related to the Firm's use of the
work of a specialist in auditing the fair value of certain assets acquired;
(7) the failure to perform adequate audit procedures related to the
completeness and accuracy of debt and accrued interest payable; and
(8) the failure to perform adequate audit procedures to determine the
reasonableness of the reserve for inventory obsolescence.


http://pcaobus.org/Inspections/Reports/Documents/2008_Jewett_Schwartz_Wolfe.pdf





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