I wanted to point out with the 2008 report that the CEO had YEARS to act on the fact the auditor was incompetent. He never did a thing. Yes, the 2010 inspection report shows an even more slovenly bunch. But things have always been slovenly with the CFO and the pizza scarfing CEO! As I've said for years: MLKNA is and always will be a P&D dumpster dive!
Inspection of Jewett, Schwartz, Wolfe & Associates
October 29, 2010
Those deficiencies were –
(1) the Firm's failure to identify, or to address appropriately, a departure from
GAAP that related to a potentially material misstatement in the audited financial
statements concerning the valuation of consideration received in exchange for a
subsidiary;
(2) the Firm's failure to identify, or to address appropriately, a departure from
GAAP that related to a potentially material misstatement in the audited financial
statements concerning the accounting for start-up costs;
(3) the Firm's failure to identify, or to address appropriately, a departure from
GAAP that related to a potentially material omission from the audited financial
statements concerning the presentation and disclosure of income taxes;
(4) the failure to perform sufficient audit procedures related to the accounting
for convertible debt instruments;
of Omitted Procedures After the Report Date, and AU 561, Subsequent Discovery of
Facts Existing at the Date of the Auditor's Report (both included among the PCAOB's
interim auditing standards, pursuant to PCAOB Rule 3200T). Failure to comply with
these PCAOB standards could be a basis for Board disciplinary sanctions.
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(5) the failure, in two audits, to perform sufficient audit procedures related to
the valuation and completeness of common stock issuances;
(6) the failure, in four audits, to perform sufficient audit procedures related to
the completeness, existence, and valuation of revenue;
(7) the failure, in two audits, to perform sufficient audit procedures related to
the existence and completeness of accounts receivable;
(8) the failure to perform sufficient audit procedures related to the existence
and completeness of inventory;
(9) the failure to perform sufficient audit procedures related to the valuation of
intangible assets;
(10) the failure to perform sufficient audit procedures related to the existence,
completeness, valuation, and presentation and disclosure of capitalized direct
response advertising costs;
(11) the failure to evaluate the consistency of current period financial
statements covered by the Firm's audit report with those of the prior period and
failure to perform sufficient audit procedures to evaluate the effect of opening
balances on accounts for the period under audit ;
(12) the failure to perform sufficient audit procedures related to the accounting
for an equity investment;
(13) the failure to perform sufficient audit procedures related to the accounting
for income taxes; and
(14) the failure to perform sufficient audit procedures related to the valuation
and presentation and disclosure of preferred stock.
AI
