SOX compliance is no picnic.
And don't forget, Dubya signed this into law...
Twitter management should be in prison, but Garland and DOJ won’t let Marxists be held to the laws meant for the little people.
Musk’s team is discovering >5% of Twitter accounts are bots.
Think CCP sponsored installed bot centers to control information flow.
Marxist Propaganda 101.
SOX is a pretty solid set of controls to assure the financial statement is valid.
It includes both financial and information technology controls.
External auditors can rely on controls audited by internal audit, but it would have been proven to have been accurate, at some point in time.
I will say I am not aware of a SOX control that would care about the number of customers. Instead, it is strictly financial, so income and expenditures would be things the accounting department would have to get right—not the number of “valid customers.”
Oooooh. By having his offer accepted Musk forced Twatter to open their books and now he’s using that info to attack the scumbag leftists who run the company and to legally withdraw or perhaps restate his offer after the stock tanks.
Twatter asserted that only 5% of their account were bots and their advertising revenue was based on this assertion. With the real number of bots looking more like +20% of accounts then this is fraud both nationally and internationally.
Of course, Musk’s perfect defense for revealing all of this is that he did not want to assume the criminal liabilities for the past behavior of the company.
Exec’s leaving in droves or being fired tells me something with the cooked-books has surfaced. Elon knew this long ago and is now making it public. This could end in a legal mess for this at Twitter involved.
Which is why going private equity is nice.
It was later shown that Arthur Anderson did nothing wrong. This was strictly done to crash the economy.
Let’s not forget that Netflix is now doing a 180 and trying to play nice. All this going public greed is kicking them in the nutts.
It wasn’t that many years ago that when something like this FRAUD was brought to light, the CEO and the Entire Board was ARRESTED AND CHARGED, now we also have Civil Asset Forfeiture, and they should CLEAN THEM OUT FINANCIALLY and leave them with nothing but the clothes on their back.
This may be a road map to taking down all of the tech companies with bots and fake accounts.
SOX can make the most resolute board room quake with fear. Once it gets on you, accusation or not, it does not go away. You can quit but it will follow you.
This could be even more fun to watch than it is now.
SOX should be applied to universities. If, for example, a college claimed to have a professor of Native American descent, the college’s president should be held accountable if it’s really a shrill harpie gaming the affirmative action system on her way to the Senate.
Elon Musk tendered an offer based on the representations of the company by their Directors and Executive who asserted that they were correct. They agreed to the terms presented by Musk and now they are engaged in good faith negotiations to finalize the transaction. We now know that Twitter’s representations were not correct and they knew it.
My guess is that Musk knew this at the outset and he set a trap that the Twitter leadership could not avoid. He holds all of the cards and he has options. He can walk away from the deal, which will destroy the company, or he can sign the deal under a renegotiation agreement that will reduce the purchase price that more closely aligns with the real value of this company. The Directors and the Officers of the company will be in serious legal jeopardy and may end up as defendants in a criminal court.
Elon Musk tendered an offer based on the representations of the company by their Directors and Executive were correct. They agreed to the terms presented by Musk and now they are engaged in good faith negotiations to finalize the transaction. We now know that Twitter’s representations were not correct and they knew it.
My guess is that Musk knew this at the outset and he set a trap that the Twitter leadership could not avoid. He holds all of the cards and he has options. He can walk away from the deal, which will destroy the company, or he can sign the deal under a renegotiation agreement that will reduce the purchase price that more closely aligns with the real value of this company. The Directors and the Officers of the company will be in serious legal jeopardy and may end up as defendants in a criminal court.
Twitter and Facebook and the other social media companies lie about the number of users. They know there are many fake accounts. This boosts the stock price. The owners should lose all the money.
Fraud vitiates everything.
That would include a count of users versus bots and fakes
Twitter’s CEO and CFO are in serious trouble.
So is Twitter stock. This may mean doom for Twitter.