How Do You Know Those Financial Statements Have Been Audited?

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How Do You Know Those Financial Statements Have Been Audited?

On January 29, 2010, in Internet Loans, Nevada, Securities Industry (general), by Investor's Watchblog

Have you ever reviewed a financial statement? Did it matter to you whether it was audited? Most investors would rather see audited statements so that they can be sure a qualified accountant has tested the representations in the statements. Who wouldn’t want to see audited statements?

The U.S. Securities and Exchange Commission has charged Tsukuda-America Inc. and [...]

Have you ever reviewed a financial statement? Did it matter to you whether it was audited? Most investors would rather see audited statements so that they can be sure a qualified accountant has tested the representations in the statements. Who wouldn’t want to see audited statements?

The U.S. Securities and Exchange Commission has charged Tsukuda-America Inc. and John W. Petros of lying about the audit of the financial statements. Plain and simple, the defendants allegedly told investors that the financial statements had been audited, when they had not. The SEC says that the defendants forged the audit report, but did not stop there; they also allegedly forged documents from an attorney and a geologist, both of whom were figments of the defendants’ imaginations.

This case is not unusual. Today, hundreds or thousands of investors will turn their nest eggs over to scam artists in reliance upon forged documents. If you need your nest egg, get an expert to investigate before you invest. Otherwise, you may soon find yourself starting over with nothing.