Clark Schaefer Hackett (CSH): stand behind your audit.
Or correct the record.
CBST asks its paid auditor to acknowledge that its existing financial statements do not require disclosure of a $4 million liability—or revise them with certified PNC Bank records supporting that liability. PNC told the Office of the Comptroller of the Currency (OCC)—the U.S. Treasury bureau that regulates national banks—that the $250,000 note was the only debt it had on file for CBST.
Why this hurts CBST: CSH’s failure to confirm or revise leaves a cloud over the accuracy of CBST’s financial statements and prevents CBST from competing for business. This is the business harm being caused by CSH by failing to either admit CBST's financials are accurate or provide a REVISED statement showing the alleged PNC $4 million debt supported by PNC Bank records.
CBST questions: Why is CSH requiring CBST to put a non-existent $4 million debt on CBST's financial statements when CSH does not require the same of other businesses, of the governmental entities or of school boards which CSH has audited or currently doing business with?
Other CSH customers should be concerned: Because CSH continues to claim a $4 million PNC Bank debt that never existed should be on CBST's audited financial statements, CBST questions the accuracy of the financial statements of other CSH customers such as the City of Toledo, City of Hamilton, Kentucky First Federal Bankcorp, City of Cincinnati, Mercer Bankcorp, Dayton City School District, Butler County Mental Health and Addiction Recovery Services Board and many others.
CBST only raises the accuracy of these entities' financial statements based on what CSH is requiring CBST to do. The public should question whether these entities' financial statements are accurate because they do not disclose a non-existent $4 million debt with PNC Bank. Similar to CBST, should these entities' financial statements be retracted for failing to disclose a $4 million debt that never existed?
The January 30 and March 2, 2017 OCC letters are now available in the evidence library.