I am no auditor, but have some insights (a little knowledge is a...

I am no auditor, but have some insights (a little knowledge is a dangerous thing) but I would have thought auditors are very conscious of materiality & its normal they have systems to make their own audit risk assessment in some shape or form. For something very material they would follow & test the complete business process. I continue my previous points; & as previous posters have pointed out you do not have to be a clever auditor to identify so much revenue coming at end of year raises revenue recognition issues & other related matters. They should have been all over the Chinese contract accounting for just about 100% of NPAT - after all what else was their to do for their $280k fee? If the auditors did not understand Chinese contract, its revenue recognition policy etc their audit report was obviously a waste of our $280K, ;-) Still whistling in the dark! ;-)