Unformatted text preview: Douglas, CPAs, is named as the previous auditor. Mr. Lancaster seems to obtain too much power in the company as both the CEO and director of the board. Based on the business items from the 10-K there are many questionable inventory and equipment transactions that seems to be obtained through the directors authority with the shareholders money. Lancaster might be hiding or encouraging fraud in the company. CEO bonuses are much larger than those of other board members. It might be judicious to look over transactions that he is involved in. A $12 million lawsuit listed under their liabilities raises red flags on the companys future could be financially related or product related (i.e. patent, trademarks, and etc)...
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- Spring '11
- Financial audit, Vice President of the United States, Darlene Wardlaw