Replies to post #257839 on Sulja Bros. Building Supplies, Ltd (SLJB)

[TheFraudStopper]

I would respectfully disagree.

Just because an auditor has just been censured does no mean that they will be clean from here on in.

I would like to point out that there are auditors (I am not claiming that Turner Stone is a such an Auditor, but I would like to remind people that there is a history of MULTIPLE irregularities with this firm) that make their living by skirting as close to the edge as they can get. Such Auditors form a vital part of the machinery that ScamCo's need in order to keep operating.

If you were running a company that is on the up and up and being falsely accused of fraud (as SLJB claims) wouldn't you want a squeeky clean auditor?? On the other hand, if you were trying to sneak a scam past your shareholders as well as the regulators wouldn't you want auditors who had, in the past, turned a blind eye to fraud?

Consideration of Fraud

17. The failures described above constitute departures from the PCAOB auditing standards cited above. In the specific circumstances of Respondents' audit of the Company's FY 2003 financial statements, those failures were compounded by

Respondents' (just in case anyone is unclear, Respondents in this action are Sulja's new auditors Turner Stone and Edward Turner, one of the two partners in the firm) failure to respond appropriately to indicators of a risk of material misstatement due to fraud.


16/Respondents not only failed to perform basic procedures adequately, but also failed to reassess the risks after learning about numerous facts that, either standing alone or in the context of other facts learned prior to the audit, warranted heightened scrutiny that should have alerted them to the possible need to extend or modify the audit tests.


After being presented with numerous warning signs during the audit, such as the unusual, significant year-end transactionsconcerning 1920 Bel Air and TransOne, the related party nature of the 1920 Bel Airtransaction, questionable confirmations, and conflicting evidential matter concerning theTransOne equity conversion, Respondents should have reassessed whether the nature of auditing procedures performed needed to be changed to obtain additional or morereliable corroborative information concerning 21stCentury’s revenues,

Once again, just because there is an investigation and the auditors have been censured does not mean that all will be clean now. As I have said before, look at USXP, CMKX, CKYS, all scams that continued inspite of investigations, charges, judgements etc.