Dynamic Technologies Group Inc - Class A ERILF

RE:RE:I contact company regarding A/R

[pone]

billy4325 wrote: The 2014 statements have been audited.  The auditors look at the collectibility of A/R and have access to much more information then we'll get.  They haven't required there to be a increase in allowance for doubtful accounts, so between them and management, I'd think the allowance is reasonable as is right now.

I'm accepting the company's answer on the receivables.   But this statement you make is pure nonsense.   Just look at the hundreds of Chinese frauds that came to the US markets from 2008 through 2010 and it is very clear that auditors do very poor spot checking on receivables.

I remember one of those frauds - FUQI - that kept reporting enormous sequential sales gains, and 90% of that was just stuffed into receivables.   At the time I kept calling that out to investors and one of the standard responses was always that they were audited, so it must be okay.    I trust auditors to make financials fit into some kind of legalistic format, but I would never trust auditors to uncover or disclose substantial deterioration in a financial position that does not create a liquidity concern.