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martych

03/07/11 7:49 AM

#21835 RE: GorillaGorilla #21825

It's true that the possibility of restatement won't be eliminated until the actual filing and release of financial information. If I read the 8k correctly for FUQI however, this relates to interim finanicals as contrasted with CCME where the claims of fraud relate to the prior audit. If Deloitte did see the probability of restatement of their own 2009 audit they likely would not wait until so late in the calendar to announce it to the investing public. Their approach would be to make the public aware as quickly as possible that they shouldn't rely on the audited financials for 2009. Their involvement in the quarterlies is quite limited so the probability of the quarterlies needing restatement is not nearly as remote.

Having a higher possibility of quarterly issues however is the same as all companies so it comes down to why we would question the integrity of these reports. The only reason to question them links back to these hit pieces that all point at 2009 operations.