>>While we are informed of operations proceeding normally with growth, we are not informed about turnover or lack thereof among company employees. Does KPMG have a blank check to get the books in order or have they submitted a proposal with a maximum fixed fee against hourly charges? Is there not even an estimate of the cost? How about with Mr. Pappas and his associates? They don't work inexpensively, and yet they are in charge and we know their hourly rates, but are there performance hurdles or some safeguards that might limit their compensation other than their conscience and the funds available? <<
I suspect that there was an estimate of the cost, but with set hourly rates. Obviously, not a "fixed fee" arrangement as there was no way to determine the extend of the problems, without actually doing the work. I am sure that the estimate was vastly exceeded. It sounds like the books were in shambles, and that the released accounting statements were flagrantly erroneous from A to Z. I suspect that the cost of the study is a minimum of $1 million. Further, given the ligitation, and the SEC scrutiny, one would expect the work to pick over the books, like jackals on a carcass. |
