Replies to post #1169 on Value Microcaps Free-For-All

[Bobwins]

Lentiman, I disagree. To qualify for otc, I'm sure annual has to be audited. 10q's are typically company prepared. Auditors make corrections and adjustments at yearend, which is why they get longer to publish annual 10K.

Bobwins

[jtomm]

I think this may be a slight misunderstanding of the auditing process. As far as I know, quarterlies are nearly always undaudited for all companies (this is not that well known by the investing community). Look at the latest 10-Q for Microsoft and you'll see they also say "unaudited."

BSIC and CTIG do have audited financials (the auditor's statement is always in the 10-K). I didn't look at the rest, but my guess is if they're otcbb, then they do in fact have audited financials.

Dishonest companies will often use the unaudited quarterlies to their advantage. They'll report three quarters of fantastic (unaudited) earnings, and then -- woops (surprise, surprise) -- an earnings restatement in the final quarter when the auditors come calling.