Hannover House Inc (HHSE)

[BigT65]

What makes you think he can't fake the numbers and still get through an audit? After all, the company provides the auditors the numbers to look at. And, the sample of items they look at are typically very minimal.

If you demand audits because they were promised or were required for financing, different story and you can argue from that standpoint, I have no issues there and those points have some validity.

MY POINT: Audits do NOT catch fraud period.

Nice short article for you, very basic:
http://www.allbusiness.com/accounting/fraud/4967920-1.html

If you believe management to be liars, sell and move on. If you believe they are on the up and up, and on the right track; stay buckled in. Pretty simple!