1 million dollar profit, page-37

Hi zzedzz

Agree totally that in light of the proposed Sinopec deal the auditor accepted AED's assumption of being a going concern. That is stated in black and white in the report - the auditor expressly stated that this issue was not reason enough to qualify the report.

And the basis of the auditor's comfort is also there in black and white in the report as well - that is, details describing the fact that AED has a genuine deal in the making, subject to various government agencies' approval, with an oil major.

I'm not sure people can have it both ways: if they accept the auditor's note that the assumption of going concern is predicated on there being a genuine deal in the making, then they have also to accept that there is actually a genuine deal in the making.

The deal may fall over but at the time of signing off on report the auditor was sufficiently assured that the assumption of going concern was appropriate for AED. My understanding is that the auditor's report was to the level of negative assurance, rather than positive assurance.

But IMO if the deal does fall over it will be due more to a cock-up than a conspiracy.