5) Looked over fiscal 2013 financials. On face of it, straightforward audit. In and out 2-3 months max...Confirm balance Sheet, not too difficult, agree P&L allocations, accordingly BY DEFINITION SUGGESTS YOUR INTERNAL CONTROLS ARE OK Agree disclosures, and you are away...
6) Problems arise when the auditors detect issues and mgt do not cooperate. this could be because mgt has
a) conflict of interest aka VIE structure.
b) overstated revenues-- YITADONG
c) Bribes been paid-
7) One expects that mgt would work with the auditors to get them what they need, external / internal audit a distraction, but necessary evil, so for Khan to sign off on PR announcement they are considering PWC request begs disbilief.
8)With US securities lawyer, plus TORO rep announced , heavy weights to deal with this cluster..
SO what is your bottom line.
Is it not feasible if we were to put some trust in NQ PR's that they are trying to get on the right track by fixing internal issues. They could come out and say that based on recent internet investigation, NQ financials are in order, audit systems have been made more robust and great deal of work done to date by PWC towards F20, NQ board members are giving the go ahead to PWC to do a 2013 full year audit. And NQ feels confident that this work will be completed with in the next 30 days and will prove once and for all that NQ has nothing to hide. In addition NQ is increasing its stock buy back program from $35m to $50m. Will this not be enough to assure the market that NQ, while late on F20 is legit and this action possibly could move the share price in the low teens till the F20 comes out. Then it is off to the races. Oh Toro being on the board can also issue a statement that they are increasing its 1year target price to $50.