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Strategies & Market Trends : Due Diligence - How to Investigate a Stock -- Ignore unavailable to you. Want to Upgrade?

To: jbIII who wrote (735)	4/7/2001 1:19:30 PM
From: Don Pueblo	Read Replies (1) \| Respond to of 752

Ask the corporate controller where he stashed the dough he made on the options, I would guess.

To: jbIII who wrote (735)	4/8/2001 5:54:42 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 752

JB: If you mean to find out what was actually done the companies board has to hire independent accountants (they can be from the regular auditor) to do a complete analysis of the ledger (the underlying accounting data base). It shouldn't be too hard but can take quite some time since they will have to go back year by year (one doesn't assume its a one year problem) until the do a year with no "issues". So they start with 2000 and 1999 and if the uncover anything in 1999 then its on to 1998, etc. They 1st look @ any "adjusting" non cash entries made during the year. Of course I'm assuming the audit reconciled all the cash accounts. Once the review starts it should take anywhere from 6 weeks to 9 months (depends how bad the fraud was, look @ LHSP where it took around 6 - 9 months). good luck