wouldn't have saved you in Enron, ABC learning, Dick Smith, Timbercorp, Sino Forest, Slater and Gordon or any company that has had had audited accounts.
Auditors do discover stuff occasionally - usually after a change from a previous auditor or after a prod from a regulator. But as this article states, in fact the first to discover corporate fraud is most frequently a short seller:
Short sellers 14.5%
Analysts 13.8%
Auditors 10.5%
Regulator 6.6%
Whilst according to this study, on companies that complain about short sellers massively underperform the market. Gerry Harvey and Frank Wilson should take note!
QIN Price at posting:
$1.09 Sentiment: Sell Disclosure: Held
