"I say again you do not know who the auditor is"
And once again, you are wrong.
I have spoken with the auditor from the firm who did TSIS's audit last year and who is in charge of doing this year's audit. He stated that the firm is a Chartered Accountant, located in Canada, and authorized by NASDAQ as an approved auditor.
From a technical standpoint, he explained that last year's audit was performed to Canadian GAAP standards, noting that such audits are required by the BC (Provincial) Securities Commission, to which TSIS still has certain reporting obligations ... even though it is a Delaware Corporation. He explained that this reporting obligation made sense since some investors bought into TSIS at a time when it was originally incorporated in Canada ... implying that the BC Securities Commission would logically have an obligation to oversee reports until TSIS became a fully-reporting company in the USA.
He stated that this year's audit ... the one currently in progress ... is also being conducted to Canadian GAAP standards but that there has been discussion with the company about putting into the "Notes" section of the audit the necessary information to permit one to convert to US GAAP figures.
He explained that one major difference between US and Canadian GAAP standards is in the area of accounting for stock options and benefits. In the US, he explained, there is a complicated procedure for accounting for these as an expense.
(My understanding of this is that the current Black-Scholes value of the options must be determined and considered both as an expense to the company and as income to the recipient, but I am not a CPA).
(Another possible difference between US and Canadian GAAP standards this year may lie in something called FASBI, a new reporting requirement for segmented companies. Since TSIS is not segmented, I reckon this would have minimal effect.)
I asked if this procedure of providing this conversion information in the Notes would be required if the company were to file to become fully reporting in the US, and he replied emphatically in the affirmative and volunteered that such discussions were being conducted (by the company's management) with the SEC and NASDAQ at the current time.
As I rang off, he noted that he was "surprised" that they were selected to be the auditor again this year and fully anticipated that TSIS would select a US-based auditor for the next Fiscal Year (implying the FY which actually began on August 1st).
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For other thread readers, anyone who wishes to address me by P-mail or E-mail, I will be glad to share the name of the auditor. Breeze1 will have to call the company or dig out his notes and handouts from the last Annual Meeting to get it <grin>.
JSb.
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