Camrova Resources Inc V.CAV.H

geezer: Yes, the control environment is suspect

[shermandrock]

Fact: Management is responsible for designing and implementing a system of controls intended to produce reliable data to those in a decision making position.

 

Fact: The BOD are those individuals in a decision making position.

 

Fact: There were 4 BOD defections.

 

My inference: The BOD were not informed as costs began to escalate and were presented with erroneous information on which to make decisions, including compensation for managers et al.

 

My assertion: The BOD has no confidence in management's ability to properly evaluate and then execute the plan of operation.

 

My opinion: The control environment installed by management is suspect.

 

I trust that this will be sufficient.