Replies to post #62326 on Sulja Bros. Building Supplies, Ltd (SLJB)

[texasholdem]

All Goodies. Time to gobble shares while the gobbling is good.

[budgetthis]

About the audited financials........

I find it interesting that a date of September 15th has been announced for release of the audited financials. I used to work in the Finance Dept. of a rather large corporation in Seattle that was audited each year by Deloitte and Touche, CPA's. One of my tasks was to help answer the many questions the auditors would come up with........most questions simply related to why Revenue, Expenses, Assets, Depreciation, etc. were higher or lower than the prior year. Some questions were related to GAAP.(generally accepted accounting principles).

To ENSURE we had the audit (and thus the financials) completed by a target date, lets say for example September 15th, we would set an audit completion date AT LEAST two weeks earlier, which would be, in our "example case", August 31st.

The audit process involves CONSTANT communication between the auditing company and the client. There will not be a magical presentation from the auditors to management on September 14th, saying something like "well, here are your audited financials......hope you like them"..........hehehe. No, actually, the FINAL financial statements are "agreed upon" documents that the auditor and client both believe to be accurate and represent the true financial condition of the company under generally accepted accounting principles and practices. The process is taken very seriously these days......(think Enron and Arthur Anderson, CPA's......Arthur doesn't exist anymore).

This simpified example "suggests" to me that the company already has completed financials in-hand. We will get them when they are ready to release them, hopefully on or near September 15th.

Also, the CPA firms chosen are impressive.....these people don't come cheap, and they insist on accuracy before they provide a "clean opinion" to management.

The fact that the Balance sheet was the last document to be finanized tells me that a confirmation of value had to be made about the Asset structure of the company........this is only my opinion, but seems to me to fit here, imho.

This is simply a recap of how financials are reviewed and approved by the auditing community, based on my past practices......it doesn't in any way try to predict the current situation with Sulja. I have NO insider information.

Have a good day, everyone, and good trading to us all !!

Budget, (CPA in a prior life......)